Veldhoven-based chip machine maker ASML has warned it can no longer guarantee continued growth next year, despite earlier expectations that demand would keep rising.
The Veldhoven-based firm, which builds the advanced machines used to produce computer chips, had previously expected to see a rebound in demand next year.
“While we still expect growth in 2026, we are not in a position to guarantee that right now,” chief executive Christophe Fouquet said on Wednesday at the presentation of the group’s first half figures.
ASML builds the high-tech machines used to manufacture computer chips, a sector boosted by the global rise of artificial intelligence. But the company, like the broader semiconductor industry, is increasingly vulnerable to potential US trade restrictions.
The company said market conditions remained challenging but described the second quarter as “slightly less negative” than expected. Revenue between April and June came in at €7.7 billion, roughly in line with the previous quarter.
Despite that, ASML shares dropped sharply after the results were released. ASML shares are now down around 30% compared to a year ago, while the AEX index has slipped just 1% over the same period.
ASML said geopolitical uncertainty has increased, particularly following a US government investigation in April into possible import tariffs targeting the chip industry. Any such measures could make ASML’s machines and the chips they help produce more expensive.
The company also warned that new tariffs would directly affect its business, especially if they apply to machines or parts shipped to or from the United States. Some of ASML’s production runs through the US, meaning it could face charges on both ends of the supply chain.
ASML still expects growth to resume in 2026, but is now more cautious about near-term developments. Over the longer term, the company remains optimistic due to sustained investment in AI applications, which require large volumes of chips—and by extension, chip-making equipment.
ASML currently generates close to €30 billion in annual revenue and aims to double that to €60 billion within five years.
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