ASML, a chip manufacturing company based in Veldhoven, faced a setback in the first quarter as it received fewer new orders than anticipated. The company attributes this to a downturn in the chip industry and forecasts a potential recovery next year.

CEO Peter Wennink commented, “We are currently navigating through a transitional year. Our outlook for the entirety of 2024 remains unchanged.” He expects the latter half of the year to yield stronger results, aligning with the sector’s gradual recovery post-recession.

In the first quarter of this year, ASML secured orders totaling €3.6 billion for new semiconductor production machines, with €656 million allocated to the most advanced variant, EUV. This marks a significant decrease from the nearly €9.2 billion in orders received in the fourth quarter of 2023.

The company’s revenue dipped to €5.3 billion, down from €7.2 billion in the previous quarter, with a net profit of €1.2 billion compared to over €2 billion previously.

ASML had previously announced cost-saving measures and hinted at potential expansion beyond the Netherlands due to the increasingly unfavorable business climate. However, during the quarterly earnings presentation, ASML did not address the potential impact of additional restrictions on exports to China.