ASML Foresees Slower Growth as U.S. Tightens High-Tech Exports to China
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LONDON, Oct. 24 Regardless of the result of the forthcoming U.S. presidential election, ASML Holding (NASDAQ:ASML) CEO Christophe Fouquet expects the United States to continue tightening the screws on limiting high-tech exports to China according to Reuters. Speaking in London at a technology conference, Fouquet stated, "If you look at the geopolitical landscape, I think it's clear that the United States will continue to apply pressure on their side for more restriction."
Notwithstanding these troubles, the Netherlands-based semiconductor equipment behemoth projects expansion in 2025, albeit at a slower pace and with 2026 following a similar trend. From 49% of overall revenue in Q2 2024 to 20% in 2025, the corporation recently revealed a dramatic decline in expected export sales to China. The drop corresponds with the Netherlands' last month's enforcing more stringent export restrictions on innovative chip-making technologies.
Building Nvidia's (NASDAQ:NVDA) sought-after AI processors, Taiwan Semiconductor Manufacturing (NYSE:TSM) remains ASML's biggest client. Amid continuous worries over the flow of advanced technology to China's tech behemoth, the U.S. Commerce Department is also looking at whether TSM is making smartphone or AI chips for China's Huawei.
This article first appeared on GuruFocus.