'Collapse' in semiconductor demand hits ASML

Apr 15, 2009

Dutch computer chip equipment maker ASML on Wednesday announced net losses for the first quarter after a collapse in sales, but said it saw signs of improving market conditions.

It swung to a loss of 117 million euros (155 million dollars) against a profit of 145 million euros for the same period in 2008. Sales, which reached 184 million euros in the first quarter, were a fifth of the figure of 919 million euros for the same period last year.

ASML chief executive Eric Meurice said in a statement that "semiconductor equipment demand collapsed in the first quarter of 2009 as customers went through inventory corrections and production capacity adjustments."

The results were in line with the expectations of financial analysts surveyed by Dow Jones Newswires, who predicted an average loss of 115 million euros and sales of 190 million euros.

The Dutch company said it expected second-quarter sales to be between 210-230 million euros and that a pick-up in demand was underway.

"Although we will continue to be affected by the global economic recession and very limited capacity demand, we are seeing signs of a pick-up in technology purchases from the current low run rate", Meurice said.

US chip maker Intel Corp. said Tuesday it is also seeing signs of an improvement in the computer market, driven by consumer spending on technology products. It said the is returning to normal seasonal patterns.

ASML is the world's largest maker of lithography systems, which map out tiny on silicon wafers. It counts , Co. Ltd. and Taiwan Semiconductor Manufacturing Co. among its customers.

ASML's shares closed at 14.60 euros on Tuesday. They have fallen 4.6 percent in the past year, outperforming the AEX market which has fallen 47.4 percent.

(c) 2009 AFP

Explore further: A bump circuit with flexible tuning ability that uses 500 times less power

add to favorites email to friend print save as pdf

Related Stories

Strong sales not leading to mobile profits

Jan 26, 2006

Mobile-phone manufacturers are finding that global demand for handsets is almost insatiable, as consumers in wealthy countries flock to update their phones with the latest multi-functioning products, while those in poorer ...

National Semiconductor to cut 1,725 jobs

Mar 11, 2009

(AP) -- Faced with a steep decline in sales, chip maker National Semiconductor Corp. said Wednesday it will eliminate more than one-quarter of its work force, or 1,725 jobs.

Intel says PC sales improving; profit beats Street

Apr 14, 2009

(AP) -- Intel Corp.'s first-quarter profit blew past Wall Street's grim forecasts as the chip maker's CEO proclaimed Tuesday that personal computer sales "bottomed out" and have started recovering.

German high-tech sector holds up: trade group

Mar 02, 2009

Germany's high-tech industry expects to buck the economic crisis this year with sales stagnating but not sinking, its chief lobby group said on Monday on the eve of the giant CeBIT trade fair.

Semiconductor sales down 28.6 pct in January: SIA

Mar 02, 2009

Worldwide semiconductor sales declined 28.6 percent in January from a year ago as the global recession continued to take a big bite out of the computer chip industry, an industry tracker said Monday.

Mobile phone sales up six pct in 2008, 4th qtr weak

Mar 03, 2009

Mobile phone sales grew by six percent in 2008 over the previous year but fell nearly five percent in the fourth quarter as the global economy weakened, market research firm Gartner said on Tuesday.

Recommended for you

Engineering the Kelpies

7 minutes ago

Recently, Falkirk in Scotland saw the opening of the Kelpies, two thirty metre high horse head sculptures either side of a lock in a new canal extension.

Technology on the catwalk

17 minutes ago

Summer days bring thoughts of beach picnics, outdoor barbecues and pool parties. Yet it only takes the buzz of one tiny mosquito to dampen the fun.

Godzilla stomps back in ultra HD, wires intact

50 minutes ago

At a humble Tokyo laboratory, Godzilla, including the 1954 black-and-white original, is stomping back with a digital makeover that delivers four times the image quality of high definition.

Dismantling ships and the trajectory of steel

52 minutes ago

Tell me how you dismantle a ship, and I'll tell how a region can prosper from its steel! This could be the motto of this master's cycle at ENAC during which the projects of two civil engineering students ...

Hackerspaces used to turn ideas turn into reality

3 hours ago

At HeatSync Labs, the tables are littered with computer chips, pens, pads and tools while the room is abuzz with the chatter of would-be inventors hoping to change the world—or just make cool things. They are part of a ...

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

guiding_light
5 / 5 (1) Apr 16, 2009
I think ASML should start thinking about diversifying into other sectors, like different substrates. The development of advanced lithography systems shouldn't be in a vacuum.
plasma_guy
5 / 5 (1) Jul 08, 2009
It was a little silly for ASML to jump into EUV, especially now that Sematech and Intel are acknowledging that even the mask blank inspection systems (which ASML cannot control) are not in place. Then again, maybe Intel got them into this, so it's really Intel's bad.