By Mauro Orru
ASML Holding narrowed its financial targets for the year amid increasing uncertainty from President Trump's tariffs, and said it could no longer guarantee 2026 would be a growth year.
The warning from the Dutch supplier of chip-making equipment comes days after President Trump sent a letter to the European Union threatening 30% tariffs on imports from the bloc beginning Aug. 1 as trade talks between Brussels and Washington continue.
The chip industry has been seeking clarity for months as the Trump administration conducts an investigation under Section 232 of the Trade Expansion Act of 1962 that could result in specific tariffs for semiconductors. ASML sells chip-making machinery to U.S. clients like Intel.
"We continue to see increasing uncertainty driven by macro-economic and geopolitical developments," Chief Executive Christophe Fouquet said in a statement. "Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage."
Fouquet's remarks come three months after he said that 2025 and 2026 would be growth years based on conversations ASML had with customers. The company also moved to narrow its guidance for 2025.
ASML now expects sales to grow around 15% to roughly 32.50 billion euros ($37.71 billion) this year compared with a previous guidance range of between 30 billion euros to 35 billion euros. Its gross margin should come in at about 52% compared with prior guidance of 51% to 53%.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
July 16, 2025 01:34 ET (05:34 GMT)
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