ASML has rejected claims that its anticipated drop in sales to China stems from earlier stockpiling by Chinese chipmakers, attributing the expected slowdown to normal market fluctuations instead.
“The reason I rule out stockpiling is because systems we ship are actually operating in factories,” said CFO Roger Dassen on Wednesday following the company’s third-quarter results, which forecast a sharp decline in Chinese demand next year.
China accounted for 42% of ASML’s total sales in the last quarter, underscoring its importance even as U.S. lawmakers push for stricter export controls on advanced chipmaking tools. They have claimed Chinese firms have been buying equipment in excess of real production needs.
Dassen also discussed ASML’s response to China’s recent rare earth export restrictions, saying the firm is well stocked and has alternative suppliers. “We have inventory and alternatives, but the long-term impact depends on global trade stability,” he said.
China dominates the global rare earths market, producing over 90% of processed materials and magnets critical to ASML’s lithography systems. The country expanded its export controls earlier this month, raising supply chain concerns across the semiconductor industry.
ASML warned that while it can manage short-term supply pressures, long-term geopolitical friction could pose deeper risks if trade flows become more restricted.
