Latest news with #ASMLHoldingNV
Time of India
a day ago
- Business
- Time of India
China's $50 billion chip fund switches tack to fight US curbs
China 's main chip investment fund is planning to focus on the country's key shortcomings in sectors like lithography and semiconductor design software, adjusting its approach to better overcome US efforts to stop its technological advances. The third phase of the state-backed National Integrated Circuit Industry Investment Fund, better known as Big Fund III , will focus on backing local companies and projects in areas considered bottlenecks to technological advances, people familiar with the matter said. That includes lithography systems, where Dutch firm ASML Holding NV dominates, and chip design tools, an arena controlled by US companies Cadence Design Systems Inc. and Synopsys Inc. The new vehicle has so far secured only a portion of the 344 billion yuan ($48 billion) of capital it originally sought when first created more than a year ago as Beijing is being more cautious with its semiconductor bets, according to the people, though the shortfall should be temporary. The Big Fund III plans to hold its investments for a longer period compared to the two previous phases, they said, declining to be named discussing a private government initiative. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Victoria Principal Is Almost 75, See Her Now Reportingly Undo A years long US-led campaign to curb China's access to chips, equipment and software has appeared to stall Beijing's ambitions in semiconductors, essential to creating cutting-edge AI. Chinese President Xi Jinping has declared the elimination of such choke-points a top priority, particularly as local artificial intelligence players including DeepSeek and Alibaba Group Holding Ltd. are trying to compete on the global stage with deep-pocketed US rivals such as OpenAI in a critical field. China's Big Fund for years sprinkled capital throughout most sectors of the semiconductor industry, from leading manufacturers such as Semiconductor Manufacturing International Corp. to small design companies. It's now adopting a more targeted approach, after massive investments during the fund's first two phases failed to deliver real breakthroughs beyond a surprisingly sophisticated Huawei Technologies Co. mobile processor in 2023. Live Events Big Fund III is preparing to make its first major investments in coming months, the people said. Part of its directive is to spur industry consolidation, through deal-making or otherwise, they added. If the new vehicle achieves the scale it originally aimed for, it will be China's largest-ever semiconductor fund, bigger than the previous two phases combined. It counts China's Ministry of Finance, state-owned banks and several local government-backed funds as limited partners, according to corporate data provider Tianyancha. It's created three sub-funds to help identify investment targets throughout the supply chain, the people said. China's Ministry of Finance did not respond to a faxed request for comment. Messages to an email for Big Fund III listed on Tianyancha went unanswered. It's unclear whether the fund's managers have identified potential investment or deal targets. Some of the biggest names in China's chipmaking equipment space include Shanghai Zhangjiang High-Tech Park Development Co., which holds an 11% stake in privately-held lithography machine maker Shanghai Micro Electronics Equipment Group Co. Chinese media outlets have also speculated that Huawei eventually wants to build its own lithography machines, required to make cutting-edge AI chips that can rival Nvidia Corp.'s offerings. Empyrean Technology Co. is one of Chinese's best hopes of competing with leading global chip design software providers including Cadence and Synopsys. China's national chip fund was inaugurated about a decade ago with roughly 100 billion yuan in capital, and has since spearheaded the state's investments in all things semiconductors. It's serving as an important signal of Beijing's policy imperatives, as well as a scorecard for government endorsement. In recent years though, it's faced setbacks in achieving its mission, both internal and external. The US banned Nvidia from selling its best AI accelerators to China, while allies such as Japan and the Netherlands have joined the campaign to ringfence the country's tech sector. Stung by a lack of scientific achievement, Beijing initiated a series of anti-graft probes into top chip industry officers in 2022.
Yahoo
17-04-2025
- Business
- Yahoo
ASML Holding NV (ASML) Q1 2025 Earnings Call Highlights: Strong EUV Sales and Strategic Challenges
Total Net Sales: EUR7.7 billion. Net System Sales: EUR5.7 billion (EUV: EUR3.2 billion, Non-EUV: EUR2.5 billion). Install Base Management Sales: EUR2 billion. Gross Margin: 54%. R&D Expenses: EUR1.161 billion. SG&A Expenses: EUR281 million. Effective Tax Rate: 16.7%. Net Income: EUR2.4 billion. Earnings Per Share (EPS): EUR6. Cash, Cash Equivalents, and Short-term Investments: EUR9.1 billion. Free Cash Flow: Minus EUR475 million. Net System Bookings: EUR3.9 billion (EUV: EUR1.2 billion, Non-EUV: EUR2.8 billion). Dividend: EUR1.52 per ordinary share for Q1 2025; total 2024 dividend proposal of EUR6.40 per ordinary share. Share Purchases: EUR2.7 billion in Q1 2025. Warning! GuruFocus has detected 2 Warning Sign with CFG. Release Date: April 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ASML Holding NV (NASDAQ:ASML) reported total net sales of EUR7.7 billion for Q1 2025, in line with guidance. The company achieved a gross margin of 54%, exceeding expectations due to favorable EUV product mix and customer productivity milestones. Net income for Q1 2025 was EUR2.4 billion, representing 30.4% of total net sales, with an earnings per share of EUR6. ASML Holding NV (NASDAQ:ASML) continues to see strong demand in the AI sector, which is expected to drive growth in 2025 and 2026. The company is making significant progress in EUV technology, with milestones achieved in both low NA and high NA platforms, supporting customer roadmaps and cost optimization. ASML Holding NV (NASDAQ:ASML) experienced a negative free cash flow of EUR475 million in Q1 2025 due to customer payment dynamics and investments in fixed assets. There is increased uncertainty in the business environment due to ongoing discussions about tariffs, which could impact ASML Holding NV (NASDAQ:ASML) and its customers. The gross margin for the second half of 2025 is expected to be lower than the first half due to potential tariff impacts and lower upgrade revenue. ASML Holding NV (NASDAQ:ASML) faces challenges with the geopolitical situation, particularly regarding tariffs that could affect the semiconductor supply chain. The company anticipates a wider range of gross margins for Q2 2025 due to uncertainties around tariffs and their absorption in the value chain. Q: Could you consider flexibility around the pricing of high-NA to facilitate adoption? A: Christophe Fouquet, CEO: The main reason for not adopting new systems quickly is tool maturity, not price. We focus on achieving maturity to ensure optimized cost of technology. Lowering prices without maturity would create issues for customers. Q: What kind of bookings run rate should we expect to see growth in 2025 and 2026? A: Roger Dassen, CFO: We believe 2026 will be a growth year based on technology and market demand, despite macroeconomic uncertainties. While we have a strong backlog, additional bookings are needed for growth, but we won't quantify the exact run rate needed. Q: Is China still expected to account for around 25% of sales this year? A: Roger Dassen, CFO: Yes, we expect China to be slightly over 25% of sales this year, with demand particularly strong in the mainstream business. The backlog composition for China remains in the 20% to 25% range. Q: How are customer conversations regarding tariffs affecting delivery schedules? A: Christophe Fouquet, CEO: Tariff announcements have not changed business conversations with customers. There is uncertainty, but discussions have not fundamentally altered business planning or delivery schedules. Q: Can you provide an update on the adoption of single-exposed EUV versus multi-patterning? A: Christophe Fouquet, CEO: Adoption is happening gradually. Each new customer node with better cost of technology, like the 3800E, presents an opportunity for more single-exposed adoption. This is an ongoing effort with customers. Q: What is the expected impact of tariffs on gross margins for the full year? A: Roger Dassen, CFO: It's difficult to predict the full-year impact due to uncertainty around tariffs. We aim to minimize exposure and believe the tariff burden should be shared across the value chain, not solely by ASML. Q: How does the geographic diversification of fabs affect your business? A: Roger Dassen, CFO: Dispersed fabs may lead to increased capacity needs, potentially driving semiconductor demand. However, tariff uncertainties add complexity to this scenario. Q: What are the key milestones for the EXE platform from R&D to production? A: Christophe Fouquet, CEO: There are three phases: R&D validation with EXE5000, early production testing with EXE5200, and high-volume manufacturing expected in 2027-2028. Progress is ongoing with customers. Q: How does the order volatility relate to tariff uncertainties? A: Roger Dassen, CFO: Order volatility is more related to the lumpiness of order intake rather than tariff uncertainties. Major orders require significant governance, affecting subsequent quarters' order intake. Q: How are you addressing the US tariffs in relation to encouraging semiconductor manufacturing in the US? A: Roger Dassen, CFO: The complexity of tariffs is recognized by all parties, including the US administration. There is a need for more time to understand how to reconcile onshoring goals with tariff impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
16-04-2025
- Business
- Bloomberg
Chipmakers Lead Tech Stock Rout as Trump Curbs Chips to China
Technology stocks led losses Wednesday morning after Nvidia Corp. and Advanced Micro Devices Inc. said President Donald Trump's administration has curbed the export of its chips to China, while ASML Holding NV offered a disappointing earnings report. The S&P 500 Index slid 1.43%, while the Nasdaq 100 Index dropped 2.21%. Nvidia sank as much as 7% after warning it will report around $5.5 billion in related charges during the fiscal first quarter, with AMD down 6.01% as it expects to take a charge of as much as $800 million. ASML plummeted 6.09%. The Philadelphia Stock Exchange Semiconductor Index fell 4.02%.
Bloomberg
16-04-2025
- Business
- Bloomberg
Nvidia, United Airlines, Tesla
On this episode of Stock Movers: - Nvidia (NVDA) shares are lower this morning, leading a slide in global chip stocks, due to new US government restrictions on Nvidia chip exports to China. The restrictions on Nvidia's H20 chip are seen as a permanent policy driven by concerns over China's rise in the electronics sector and are expected to have a significant negative impact on the semiconductor supply chain. - ASML Holding NV (ASML) shares are down not just due to Nvidia chip restrictions, but on comments regarding outlook from leadership due to tariffs and a disappointing report on orders. - United Airlines (UAL) shares are higher after the carrier said it expects resilient earnings in the second quarter. It says its 2025 outlook remains achievable. - Tesla (TSLA) share are lower after pausing the shipping of key components from China for its Cybercab and Semi models. It comes amid a growing US-China trade war.
Bloomberg
16-04-2025
- Business
- Bloomberg
Stock Movers: Nvidia, ASML, United Airlines
On this episode of Stock Movers: - Nvidia (NVDA) shares are lower this morning, leading a slide in global chip stocks, due to new US government restrictions on Nvidia chip exports to China. The restrictions on Nvidia's H20 chip are seen as a permanent policy driven by concerns over China's rise in the electronics sector and are expected to have a significant negative impact on the semiconductor supply chain. - ASML Holding NV (ASML) shares are down not just due to Nvidia chip restrictions, but on comments regarding outlook from leadership due to tariffs and a disappointing report on orders. - United Airlines (UAL) shares are higher after the carrier said it expects resilient earnings in the second quarter. It says its 2025 outlook remains achievable. - The Metals Company (TMC) is looking to continue the streak of gains for rare metals miners as the government plans to allow stockpiling of critical minerals.
