September 30, 2021: -ASML has raised its long-term outlook following a surge in demand for the semiconductors that its machines help make.

The Dutch company, making the lithography equipment that’s used to produce the most advanced chips in the world, said in a statement on its investor day that it now expects annual revenue to hit 24-30 billion euros by 2025, with gross margins up to amid 54% and 56%.

The prediction is significantly better than the 15-24 billion euro range it had previously forecast.

“We see significant growth opportunities beyond 2025,” the company said, which adds that it expects to achieve an annual revenue growth rate of around 11% amid 2020 and 2030.

In the last year, demand for chips has soared worldwide after the coronavirus pandemic led to a chip crunch that wreaked havoc on the automotive industry and beyond.

ASML said, “global megatrends in the electronic industry” coupled with “a highly profitable and fiercely innovative ecosystem” are expected to keep up with the fuel growth across the semiconductor market.

It added that growth in the semiconductor markets and “surging lithography intensity” drive demand for its products and services.

Headquartered in Veldhoven, ASML is the company in the world capable of building the sophisticated machines that chip manufacturers make the most advanced chips. The chips are faster and efficient than their predecessors. 

Customers of ASML include Samsung and Taiwan Semiconductor Manufacturing Co., making the chips for the likes of Apple.

Reuters reported that the Trump administration pressured the Netherlands government to stop selling the machine to Chinese customers the previous year.