News
Despite concerns over looming U.S. tariffs lasting through 2026, ASML says demand from China is stronger than expected, as the Dutch chipmaking tool giant now anticipates the market to account for over 25% of its 2025 sales, according to Reuters and Seeking Alpha.
However, amid speculations that China would soon fabricate its first-ever EUV machine, ASML CEO Christophe Fouquet is not buying the hype. As per the reports, he noted that it is still “many, many years sway” for the country to be able to make an EUV machine, and the circulating photos look more like research than actual product development, the reports suggest.
Upbeat Chinese Demand
Reuters notes that back in October, 2024, ASML warned that China sales could fall to 20% of its system revenue—but so far, they’re holding up better than expected.
According to the company’s press release, in the first quarter of 2025, China made up 27% of ASML’s system sales—steady from the fourth quarter of 2024—while many other regions dipped.
Citing CFO Roger Dassen, the reports suggest that the demand for mainstream chips in China for domestic consumption and export remained resilient. Notably, it is even slightly stronger than ASML expected three to six months ago, Dassen added.
Analysts cited by Reuters believe Chinese chipmakers are snapping up ASML’s older DUV machines amid U.S. export controls, which helps keep orders steady.
Comments on China’s EUV
There’s growing speculation that China may be closer to a breakthrough on EUV machines. According to TechPowerUp, China’s homegrown EUV lithography could be within reach, with a new system currently being tested at Huawei’s Dongguan facility. The machine is expected to enter trial production by Q3 2025, with mass production planned for 2026, the report adds.
However, in terms of this, CEO Christophe Fouquet thought of course it would be possible to generate some EUV light, or even build an EUV mirror, but the photos circulating are more like research news rather than real product yields, as noted by the reports.
As per the reports, Fouquet reiterated that it’ll still take many years for China to build a real EUV machine. “I think that we expect to continue to see news here and there because I think that’s just what you do when you want to show progress,” he noted.
Read more
(Photo credit: ASML)
