ASML Launches EUR 12 Billion Buyback, Upgrades Forecast to 2025

ASML, a key supplier of equipment to computer chip makers, on Thursday said it will launch a EUR 12 billion (roughly Rs. 98,380 crore) share buyback plan starting in 2025.

In an announcement ahead of investors’ day on Friday, the company said it expects revenue of EUR 30 billion (approx. Rs. 2,45,600 crore) to EUR 40 billion (approx. Rs. 3,27,550 crore) by 2025, an earlier estimate of -EUR 24 billion (approx. Rs. 1,96,500 crore) to EUR 30 billion.

The company’s 2021 sales reached EUR 18.6 billion (approx. Rs. 1,52,460 crore).

ASML, which has more orders for its equipment than it can supply and foresees a decade of growth, said it is moving ahead with capacity expansion plans.

“While the current environment creates near-term uncertainty, we expect long-term demand and potential to show healthy growth,” the company said in a statement.

Shares jumped on the announcement and closed 9.7 percent higher at EUR 544.20 (roughly Rs. 44,600) in Amsterdam.

The company said it expects sales to continue growing, with a target of sales of EUR 44 billion (approx. Rs. 3,60,500 crore) to EUR 60 billion (approx. Rs. 4,91,700 crore) by 2030.

ASML dominates the market for lithography systems, large machines used to trace the circuits of semiconductors.

It said it expects to expand production of its flagship EUV machines, which cost about EUR 200 million (about Rs. 1,600 crore) each, to 90 a year from about 60 currently, by 2026.

ASML’s major customers include Taiwan’s TSMC, South Korea’s Samsung and SK Hynix, and Intel and Micron Technology of the United States.

© Thomson Reuters 2022

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