ASML, a key equipment supplier to computer chipmakers, said on Thursday it would launch a 12 billion euro (nearly Rs 98,380 crore) share buyback program through 2025.
In an announcement ahead of Investor Day on Friday, the company said it expects revenue of €30 billion (nearly Rs. 2,45,600 crore) to €40 billion (nearly Rs. 3,27,550 crore) by 2025, from a previous estimate of 24 billion (almost Rs. 1,96,500 crore) to 30 billion.
The company’s sales in 2021 totaled €18.6 billion (almost Rs. 1,52,460 crore).
ASML, which has more orders for its equipment than it can currently supply and foresees a decade of growth, said it was moving forward with capacity expansion plans.
“While the current macroeconomic environment creates near-term uncertainties, we expect longer-term demand and capacity to show healthy growth,” the company said in a statement.
Shares jumped on the announcement and closed up 9.7% at 544.20 euros (nearly 44,600 rupees) in Amsterdam.
The company said it expects sales to continue to grow, with a sales target of 44 billion euros (nearly 3.60 500 crore rupees) to 60 billion euros (nearly Rs 4.91700 crore) by 2030.
ASML dominates the market for lithography systems, large machines used to map semiconductor circuits.
It said it plans to expand production of its flagship EUV machines, which cost around 200 million euros (nearly Rs 1,600 crore) each, to 90 a year from around 60 currently, by 2026. .
ASML’s main customers are TSMC from Taiwan, Samsung and SK Hynix from South Korea, and Intel and Micron Technology from the United States.
© Thomson Reuters 2022