Dutch chip giant ASML's net income dip in 2024

Dutch chip giant ASML's net income dip in 2024

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Dutch chip giant ASMLs net income dip in 2024

Dutch tech giant ASML, which sells cutting-edge machines to make semiconductor chips, reported a drop in annual net profits on Wednesday, as geopolitical headwinds and the emergence of Chinese AI start-up DeepSeek disrupt the sector.

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ASML net profits for 2024 came in at 7.6 billion euros, compared to 7.8 billion euros for 2023.

Total net sales last year were 28.3 billion euros, a slight gain on the company's forecast of 28 billion euros.

In 2023, ASML booked sales of 27.6 billion euros.

CEO Christophe Fouquet hailed "another record year" for the firm in terms of annual sales.

"Consistent with our view from the last quarter, the growth in artificial intelligence is the key driver for growth in our industry," he said in a statement.

"It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks," he said.

The tech giant is caught in geopolitical headwinds as the West seeks to curb high-tech exports to China over fears they could be used to bolster the country's military.

Earlier this month, the Dutch government announced it was tightening its export controls on advanced semiconductor production equipment, but said the measures targeted a "very limited" number of goods.

ASML responded at the time that the moves would have "no additional impact" on its business.

The tech sector has also been buffeted by the sudden emergence of DeepSeek, a low-cost Chinese artificial intelligence chatbot to rival its US competitors.

In a paper detailing its development, DeepSeek said the model was trained using only a fraction of the chips used by its Western competitors.

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