Dutch chip equipment maker ASML missed order expectations for the first quarter of 2025, as concerns grow over new U.S. trade restrictions that could impact global demand.
Q1 Results vs Expectations:
- Net sales: €7.74 billion (vs €7.8 billion expected)
- Net profit: €2.36 billion (vs €2.3 billion expected)
- Net bookings: €3.94 billion (vs €4.89 billion expected)
Net bookings, a key demand indicator, fell short of forecasts, sending ASML shares down 6% on Wednesday morning.
CEO Christophe Fouquet said demand remains strong, driven by AI, but noted that “uncertainty with some of our customers” could push revenue toward the lower end of ASML’s 2025 guidance, which stands between €30 billion and €35 billion.
Tariff Troubles Ahead
Fouquet highlighted new tariff threats as a growing risk: “Tariffs are creating a new uncertainty… it’s something we need to watch closely.”
The semiconductor sector has been jittery in recent weeks over potential U.S. tariff actions. President Donald Trump’s administration has offered mixed signals — initially exempting tech products like smartphones and semiconductors from “reciprocal” tariffs, then walking that back, suggesting those goods may face duties under a different trade category.
On Tuesday, the U.S. Commerce Department launched a national security investigation into chip imports and related products, potentially opening the door to new tariffs.
Wider Industry Impact
ASML, which supplies vital equipment to major chipmakers including TSMC, has tried to remain neutral amid global trade tensions. Analyst Ben Barringer of Quilter Cheviot said the impact from potential U.S. tariffs could be “widespread,” but it’s too early to gauge the full effect.
Meanwhile, Nvidia revealed it expects a $5.5 billion hit this quarter due to U.S. export restrictions on its H20 AI chips to China and other regions — a sign that trade actions are already hitting the bottom line in the sector.
The combination of uncertain regulation and slowing order volumes is raising questions about the semiconductor industry’s stability as geopolitical tensions escalate.
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