Increased EUV Shipments Help ASML Deliver Strong Growth in Q2 2022

ASML has delivered a strong Q2 2022 ahead of its guidance with record quarterly orders. Net sales increased by 35% YoY to €5.4 billion driven by increased EUV shipments, which accounted for 48% of the net systems sales during the quarter.

However, the company outlook for 2022 has been lowered to around 10% YoY growth on account of deferred revenue recognition due to the adoption of a fast shipment strategy. Challenges will persist in the near term amid supply chain constraints and inflationary pressures. But strong demand in high-performance computing (HPC), automotive and IoT will enhance ASML’s growth prospects in the long term.

Q2 2022 KPIs

  • Net sales of €5.4 billion ahead of guidance, thanks to deferred revenue recognition from six EUV systems’ fast shipments in Q1 2022.
  • Net systems sales at €4.1 billion, an increase of 40% YoY with EUV accounting for 48% share.
  • Service and field option sales at €1.3 billion.
  • Shipped 12 EUV systems, an increase of 33% YoY.
  • Gross margin of 49.1% at the lower end of the guidance due to inflationary effects.
  • Record quarterly net bookings of €8.5 billion. €5.4 billion in EUV orders including High-NA, thanks to customer demand in both advanced and mature nodes.
  • Record total order book of €33 billion at the end of the quarter – 85% for advanced semiconductor manufacturing, including High-end immersion and EUV, and 15% for mature technology needed for advanced production.

Counterpoint Research ASML-Revenue-Chart2

Source: ASML Earnings, Counterpoint Research Wafer Fab Equipment Tracker

Q2 Analysis

  • Net system sales by end-use had logic taking 71% and memory taking 29%. Increased shipments to logic attributed to focus by foundries on ramping up 3nm process nodes.
  • Lithography units: EUV-12, DUV-ArFi 21, ArFdry 8, KrF 38 and I-line 12.
  • Gross margin to remain under pressure in the near term due to supply chain challenges and inflationary pressure on labor, freight and parts.
  • High utilization rates of machines that are in the installed base will help ASML’s growth prospects despite demand slowing in the PC and smartphone markets in the near term.
  • ASML has started integration and initial testing of first High-NA mechanical projection optics and illuminator along with the new wafer stage received from suppliers.
  • On the DUV business side, it shipped the first NXT KrF system –TWINSCAN NXT:870 – with increased throughput capability, much needed for responding to the industry’s demand for KrF tools and wafer output.
  • In the applications business, the company completed the first eScan1100 multi-beam system installation at a customer site.
  • The company will revisit its medium-term forecast and guidance on growth opportunities beyond 2025 on “Capital markets day” on November 11, 2022.

Counterpoint Research ASML-Region-wise-chart

Source: ASML Earnings, Counterpoint Research Wafer Fab Equipment Tracker

Regional Performance

  • Taiwan took 41% and South Korea took 33% share of the equipment shipments in Q2 2022 driven by the ramping up of activities on advanced technology nodes and adoption of EUV in high-volume manufacturing by foundries to shorten ramp times, improve device performance and yield, and optimize factory output and operating costs.
  • Restrictions on the supply of DUV machines used in mature nodes in addition to EUV systems led to a fall in shipments to China in Q2. However, increased shipments to Taiwan and South Korea helped boost net sales.
  • China is a major player in the semiconductor value chain and any restriction on DUV systems’ sales, which find application in mature nodes, will affect Chinese chip makers’ expansion plans, further aggravating the component shortage crisis.

Outlook for 2022

  • Q3 net sales are projected to be between €5.1 billion and €5.4 billion.
  • Full-year revenue growth projection lowered to €20.5 billion on account of an increased number of fast shipments assuming priority due to supply chain disruptions and delaying of revenue recognition to 2023. Fast shipments reduce the cycle time by carrying out acceptance tests at the customer end to output more systems. ASML has been adopting this strategy from the beginning of 2022 to overcome issues arising out of supply chain constraints.
  • Gross margin to be between 49% and 50% due to extra costs related to output capacity increase and unexpected inflationary trends.
  • 55 EUV systems to be shipped in 2022 with revenue recognition for only 40 systems in 2022 and for the remaining 15 in 2023.

Key Takeaways

  • Increased shipments to Taiwan and South Korea attributed to ramping up of activities on advanced technology nodes.
  • Foundries ramping up production of 3nm process nodes by applying Gate-All-Around transistor and FinFET architectures and using EUV technology will help ASML improve its share in the wafer fab equipment market.
  • Fall in shipments to China due to restrictions on the supply of DUV machines will aggravate the component shortage crisis.

Related Links

Ashwath Rao has more than 20 years working experience in industry, research and academics. Ashwath had an opportunity to work with Intel Technology. Ashwath’s major coverage in Counterpoint is semiconductors and component research. Ashwath holds a Doctoral Degree, specializing in Microelectronics from Indian Institute of Information Technology, Master of Science (VLSI) from Manipal University and a Bachelor of Engineering (Electronics & Communication) from Mangaluru University.

Apple Snack Pack


Understanding iPhone

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited


In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.