ASML says gets good order intake from all clients
Thursday November 20, 12:02 pm ET
BARCELONA, Nov 20 (Reuters) - Dutch chip equipment maker ASML (Amsterdam:ASML.AS - News; NasdaqNM:ASML - News) said on Thursday the fourth quarter was shaping up well with orders coming from all kinds of customers, pointing at a broad-based recovery of the market.
"There's a groundswell of renewed vigorous activity. It's here to stay," Chief Executive Doug Dunn said at an investors meeting organised by investment bank Morgan Stanley.
"The order intake (in the fourth quarter) has been good. It is general growth. Everybody that's in the top 20 to 25 (chip makers) is asking questions and placing orders," he said.
ASML, the world's largest maker of semiconductor lithography machines which map out electronic circuits on silicon wafers, has not given a forecast for its fourth quarter order book.
The broad base Dunn was referring to includes producers of all kinds of chips -- for computers, cars and gadgets -- in all regions of the world.
ASML's customers include the world's largest chip maker Intel Corp (NasdaqNM:INTC - News) and Taiwan Semiconductor Manufacturing (Taiwan:2330.TW - News), the world's largest contract chip maker.
He reiterated last week's statement that the company's gross profit margins could be above 40 percent, from 25 percent in the third quarter, but now added it could happen as soon as 2004.
"It can get back to 40 percent plus levels in a very good year. And next year is going to be a good year, if not a very good year," he said.
Dunn said he supported the view of the majority of independent industry forecasters that the global chip industry would grow to $190 billion of revenues in 2004, up from an estimated $160 billion this year.
This would imply roughly $5.1 billion sales of lithography machines which are the heart of chip production. That $5 billion goes to ASML and its two Japanese competitors Nikon Corp (Tokyo:7731.T - News) and Canon Inc (Tokyo:7751.T - News) -- ASML had about 45 percent market share last year. |
