ASML Q4-17 Record results: €9 Billion Net Sales and €2 Billion Net Income

[user nl]

CEO Statement
"ASML generated record sales and net income in 2017, helped by a strong fourth quarter. Due to industry strength, some customers requested earlier shipments of their lithography systems, which we were able to accommodate. Earlier-than-expected revenue recognition of two Extreme Ultraviolet (EUV) systems contributed to the strong performance in the fourth quarter as well. With EUV sales crossing the 1.1 billion euro mark, 2017 was the year in which preparations for inserting EUV into high-volume chip manufacturing shifted into a higher gear. This is underlined by orders for 10 more EUV systems in the fourth quarter. Sales of our Holistic Lithography and Installed Base Management products also showed significant growth in 2017," ASML President and Chief Executive Officer Peter Wennink said.
"These results reflect our technology leadership and the success of our comprehensive product portfolio as well as the strong growth fundamentals in our industry, which enable the continued innovation in personal electronics, artificial intelligence, cloud computing and mobility. For 2018 we expect continued solid growth of sales and profitability."

Seems like ASML is marching along quite strongly, 10 EUV shipped in 2017; 22 will ship in 2018 (20 full capacity and 2 from 2017 slipped over to 2018) plus 4 EUV upgrades. Also very strong iArF sales, 161 new DUV systems shipped in 2017, a 21 percent increase from 2016. The detailed results can be viewed here, including a video presentation by the CEO on the 2018 outlook:

asml.corptv.datiq.net/2017Q4_G8ZfNGv6XCUQ9xV/video.html
www.asml.com/investors/financial-results/financial-results-2017-q4/en/s45057?rid=56166

User NL

 

[Daniel Nenni]

I just listened to the ASML presentation at ISS 2018 "Holistic EUV Lithography Cost effective scaling for the coming 10 years", which was overly optimistic, as usual. Scott Jones followed that up with a much more realistic view of EUV 7nm and 5nm with "The Impact of EUV on the Semiconductor Supply Chain". Scott will be posting something on it later. There is a serious reality gap here... The audience cameras were out in force capturing Scott's slides... Hopefully Scott's presentation doesn't dump the stock!

Spoiler alert: here are Scott's conclusion bullets:

• The major pieces are in-place for EUV adoption for contacts and vias for 7nm logic as long as reasonable uptime is reached. If pellicles are needed a pellicle solution will likely be available in time.
• 7+ with EUV for metal will require a pellicle. A pellicle solution will likely be available in time.
• A lot of work on photoresist is still needed for 5nm. Better pellicle transmission and actinic inspection are both highly desirable.
• The ramp up of EUV will initially be focused on logic and relatively slow. The impact on materials and equipment will be fairly small and likely more than offset by other product segments.

Bottom line: EUV will not save fabs money anytime soon... At 7nm EUV will speed things up a bit but EUV is not ready for 5nm.

 

[Daniel Nenni]

Here is Scott's ISS 2018 post:

ISS 2018 - The Impact of EUV on the Semiconductor Supply Chain

 

[user nl]

Very nice and detailed report by Scotten on EUV, my compliments! Excellent work (as usual) by Scotten and good to hear he got feedback from ASML on his calculations......EUV is a major transition but it seems the foundries and IDMs are getting ready to take that path and continue the innovation.....must be an exciting time compared to 3-4 years ago when the feeling was getting very gloomy around EUV......

User NL