Salem Radio Network News Sunday, July 25, 2021

Science

ASML Q2 net profit jumps 38% on strong demand for computer chips

AMSTERDAM (Reuters) -ASML, one of the biggest suppliers to semiconductor companies worldwide, reported on Wednesday a 38% jump in second-quarter net income to 1.03 billion euros ($1.22 billion), as sales continued to soar amid a global computer chip shortage.

Sales jumped 22% on a yearly basis to 4.02 billion euros, while chip makers increased their orders for ASML’s lithography systems by 75% relative to the end of the first quarter to 8.3 billion euros.

“The demand continues to be high across all market segments and our product portfolio (as) the market is focused on increasing capacity,” Chief Executive Officer Peter Wennink said.

ASML hiked its outlook for 2021 sales growth to 35%, after already tripling it to 30% in April, on the back of strong demand for both its cutting-edge chip manufacturing machines and utilisation software to quickly increase the capacity of existing equipment.

ASML services all major chipmakers, with TSMC, Samsung and Intel working on major expansion plans that will require ASML equipment.

Analysts had expected the Dutch company to report net profit of 1.02 billion euros for the April-June period, on 4.08 billion euros of sales, according to Refinitiv data.

($1 = 0.8495 euros)

(Reporting by Bart Meijer; Editing by Jacqueline Wong and Subhranshu Sahu)

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