ASML Projects Significant Drop in China Sales for 2026

Dutch technology firm ASML announced that it anticipates a significant decrease in sales in China for the year 2026. This projection comes after the company reported flat net profits for the third quarter of 2025 compared to the same period in the previous year. During a statement on Wednesday, CEO Christophe Fouquet indicated that demand from Chinese customers is expected to decline sharply, especially following a strong performance in 2024 and 2025.

In the third quarter of 2025, ASML recorded net profits of 2.125 billion euros (approximately $2.5 billion), slightly up from 2.077 billion euros during the same quarter last year. The company’s net sales for this period stood at 7.5 billion euros, aligning with its forecast range of 7.4 billion euros to 7.9 billion euros. Fouquet remarked, “Our third-quarter total net sales… were in line with guidance, reflecting a good quarter for ASML.”

Geopolitical Tensions Impacting Outlook

Earlier in July, ASML had cautioned that geopolitical and trade tensions might influence its growth outlook. At that time, the company could not confirm whether it would achieve profitability in 2026. However, during Wednesday’s announcement, Fouquet expressed optimism, stating, “We do not expect 2026 total net sales to be below 2025.” He added that further details regarding next year’s outlook will be provided in January.

ASML is renowned for its advanced machinery used in semiconductor manufacturing, a sector that has seen volatility due to changing global dynamics. The company employs around 2,400 staff from 100 different nationalities, highlighting its diverse workforce.

The anticipated decline in sales in China signals a crucial shift for ASML, which has traditionally relied on strong demand from the Chinese market. As the company navigates these challenges, stakeholders will be keen to monitor the developments in the semiconductor industry and the broader economic implications of changing trade relationships.