ASML reported quarterly profit that smashed expectations and said it is seeing order interest extending through 2030, pointing to sustained demand for its lithography systems. The company also reiterated that China will account for about 20% of its total business, sticking to a forecast it had previously given.
ASML has an effective monopoly on EUV machines, the most advanced lithography tools, but it is restricted from selling EUV and some DUV tools to China. A July report from The Information, cited by CNBC, said an unnamed Chinese company had begun manufacturing an immersion DUV machine, a less advanced category where ASML also dominates.
Analysts have raised questions about China's ability to ramp up its own DUV technology, given the engineering complexity involved. While China has been building out its domestic semiconductor supply chain, ASML's long order book suggests its market position remains strong for now.