[News] ASML Moves Ahead with New Beijing Repair Hub in 2025 Amid Tightening Chip Export Controls

As export control headwinds are hitting the chip industry, semiconductor equipment giants take different approaches. Unlike Applied Materials, which has been forced to halt equipment maintenance services for some customers in China, Dutch EUV leader ASML plans to open a “reuse and repair” center in Beijing in 2025, according to South China Morning Post.

China Takes the Crown in ASML’s 2024 Sales

The move indicates that despite U.S. pressure, the Dutch firm remains committed to its largest market by sales so far. As per the annual report ASML just released, China accounted for 36% of its total revenue in 2024, surpassing South Korea (23%), the U.S. (16%) and Taiwan (15%).

ASML notes in its annual report that for DUV, demand was higher than the company could deliver, particularly in China and for specific models.

As highlighted by the South China Morning Post, ASML credited China’s strong sales to a backlog built over previous years but expects a return to normal levels once it’s cleared. The company also saw strong demand for memory chip equipment, driven by AI-related tech shifts, with China leading in total sales, the report suggests.

According to Chinese media icsmart, ASML’s new repair center in Beijing aims to cut logistics time, spare parts costs, and environmental impact by handling repairs closer to material needs.

ASML states in the annual report that it has repair centers in Asia (South Korea, Taiwan and China), the US (Wilton, San Diego, Vancouver WA) and the EU (Veldhoven), which work with local suppliers and specialized repair partners to create a local ecosystem.

Meanwhile, U.S. chip equipment leader Applied Materials has been forced to halt equipment maintenance services for some customers in China, leading to a $400 million revenue loss in FY2025, according to Bloomberg.

China’s ASML Sales Share to Drop to 20% by 2025

Despite the move, ASML warned that geopolitical risks and export restrictions could impact its China sales. U.S., Dutch, and Japanese sanctions have already limited shipments of advanced systems, as per South China Morning Post. The company expects China to account for about 20% of total sales in 2025, according to its earlier press release.

However, ASML has maintained its full-year sales forecast, expecting revenue between €30 billion and €35 billion, a 15% year-on-year increase at the midpoint. The AI boom is expected to drive demand for extreme ultraviolet (EUV) lithography systems, a key technology for advanced chip production, as highlighted in an Economic Daily News report.

Read more

• [News] ASML to Ship First Second-Gen High-NA EUV Machine in the Coming Months, Aiming for 2026 Production
• [News] ASML CEO Christophe Fouquet: U.S. EUV Export Ban Causes China’s Chip-Making to Lag by 10-15 Years

(Photo credit: ASML)