Semiconductor equipment maker ASML posted sales of 3.958 billion euros in the third quarter, a rise of 32% year over year.
The extreme ultraviolet (EUV) exposure equipment maker posted operating profits of 1.216 billion euros, an operating margin rate of 30.7% and rise of 77% year over year.
ASML said it expects fourth quarter sales to be around 3.6 billion euros to 3.8 billion euros with a margin rate of 50%.
Annual sales for 2020 is expected to 13.3 billion euros, the Netherlands-based company said. It is also expecting double digit growth in 2021.
ASML is the only company that supplies EUV equipment. EUV equipment is needed to draw integrated circuits under 7nm. One EUV equipment costs around 150 billion won.
CEO Peter Wennink said impact of the COVID-19 pandemic in the third quarter was minimal. Ten EUV systems were shipped in the quarter and sales of 14 systems were reflected on third quarter earnings, he said.
ASML’s biggest clients are Samsung Electronics and TSMC. The two rivals are buying more EUV systems to secure production capacity of 7nm and smaller processes to win clients.
ASML’s third quarter earnings show Taiwan accounted for 47% of its sales, followed by South Korea at 26%. TSMC is based in Taiwan and Samsung in South Korea.
The semiconductor equipment maker is increasing EUV system production every year. It produced 18 units in 2018, and 26 units in 2019. It is expecting to produce over 30 units this year. ASML is aiming to produce between 45 to 50 systems in 2021.