Semiconductor equipment maker ASML will report third-quarter earnings for its fiscal 2022 fiscal year before the U.S. stock market opens on Wednesday (19th), with attention focused on supply chain hurdles, customer spending cuts and the U.S. expanding export controls on Chinese chips. However, the company’s past strong orders for computer chip equipment should help the quarter.
Esmol is still digesting an accumulated order book worth 33 billion euros (about 32.5 billion U.S. dollars), which may continue until 2024. However, the market is watching closely for any possible changes.
Analysts on average expected Esmol’s third-quarter profit of 1.42 billion euros, almost unchanged from the second quarter’s 1.41 billion euros, according to Refinitiv data.
Esmol is still assessing the possible impact of the new U.S. regulations since the U.S. announced it would expand export controls on Chinese chips. It is reported that less than 25% of the parts of Esmore’s lithography equipment (valued at about $160 million) used to make wafers come from the United States.
Previous U.S. foreign policy led the Dutch government to ban Esmore from exporting state-of-the-art chip-making equipment to China starting in 2019, but last year Esmore still generated 16 percent of its revenue from China, a country that is responsible for sensors and power supplies. Important manufacturer of mature wafers such as controllers.
In addition, TSMC (TSM-US) (2330-TW) said last week that it had revised down its capex significantly by 10%, partly due to “tool delivery challenges,” apparently referring to Esmore.
Esmore said in July that it was struggling with “increasing” supply constraints, including at the component level of its own suppliers, that could continue until the end of the year. Separately, the company will announce to the market in November whether it can expand production capacity by 2025.
Before the deadline, ASML (ASML-US) on Tuesday (18th) US stocks rose 1.87% in intraday trading, with a tentative report of $399.57 per share.