ASML's global Q2 2023 revenue grew 27% year-over-year, driven by investments from global semiconductor companies to meet future demand.

ASML Holding NV (ASML) announced its second-quarter 2023 earnings on the 19th. According to the report, second-quarter revenue reached €6.902 billion, a 27.1% year-over-year increase and a 2.3% increase compared to the previous quarter.

The gross profit margin was 51.3%, and net profit for the period was 1.9 billion euros.

Net bookings in the second quarter amounted to €4.5 billion, including €1.6 billion from EUV.

This growth was attributed to increased sales of related products as a result of investments by global semiconductor companies in response to advanced future demand.

EUV ranked first in sales by product category with 37%, but its share decreased from 54% in the first quarter. Next, ArFi showed 49%, KrF 9%, and ArF Dry 2%.

By end user, logic accounted for 84% and memory accounted for 16%.

By region, Taiwan accounted for 34%, Korea 27%, China 24%, the United States 10%, and Japan 2%.

Net sales for the third quarter of 2023 are expected to be between 6.5 billion and 7 billion euros, with a gross profit margin of approximately 50%.

Net sales growth in 2023 is projected to reach 30% compared to 2022.

“The additional DUV immersion sales pushed ASML’s second-quarter net revenue to €6.9 billion, above our guidance, and our gross margin to 51.3%, above our guidance,” said ASML CEO Peter Wennink. “Our customers across various markets remain cautious amidst ongoing macroeconomic uncertainty and expect a somewhat delayed market recovery. The shape of the recovery curve is also unclear. However, ASML’s backlog of approximately €38 billion positions us well to navigate these near-term uncertainties.”

Additionally, ASML expects to achieve net sales of 6.5 billion to 7 billion euros in the third quarter, a gross profit margin of approximately 50%, and research and development (R&D) expenses and selling, general and administrative (SG&A) expenses of approximately 1 billion euros and 285 million euros, respectively. Despite heightened uncertainty, ASML expects strong growth in 2023, building on its robust DUV sales. It expects net sales to increase by nearly 30% compared to 2022, with a slight improvement in gross margin.