ASML the largest supplier of equipment to computer chip makers, reported weaker-than-expected new bookings in its first-quarter earnings on Wednesday but had strong sales to China despite U.S.-led restrictions on what it can export. Europe's biggest tech firm kept its full-year financial forecasts unchanged, with sales in 2024 seen flat from 2023 levels of 27.6 billion euros ($29.3 billion), although it is gearing up for strong growth in 2025

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Net income in the first quarter was 1.22 billion euros, down from 2.05 billion euros in the fourth quarter of 2023 but slightly better than expected, according to LSEG data. Sales were 5.29 billion euros, down from 7.24 billion euros. Sales of ASML's lithography systems to customers in China made up a record 49 per cent of the total in the first quarter or around 2 billion euros, the company said in an investor presentation published alongside the earnings.

New bookings were 3.6 billion euros, well below 5.4 billion euros foreseen by analysts polled by Reuters. "Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry's continued recovery from the downturn," outgoing CEO Peter Wennink said in a statement, describing 2024 as a "transition year." Wennink, who is retiring, will be replaced by Frenchman Christophe Fouquet at the company's annual meeting on April 24.

ASML dominates the market for lithography systems, machines which can cost hundreds of millions of euros each that use light beams to help create microscopic circuitry. It will benefit from new chip plants planned with support from governments in Taiwan, South Korea, Japan, China and the United States. According to forecasts by industry group SEMI, China is adding the most chipmaking capacity in 2024, followed by Taiwan and South Korea. U.S.-led export curbs aimed at undermining China's ability to make its own advanced chips have led Chinese chipmakers to focus on building older generations of chips, using equipment that does not fall under export control policies.