In the complex international geopolitical environment, every move of global semiconductor industry suppliers and Dutch ASML (Asma) company has attracted attention. Recently, Shen Bo, President of ASML China, stated that ASML will participate in the upcoming 6th China International Import Expo in Shanghai as scheduled, and stated that "as the first CIIE after the end of the epidemic, we are very looking forward to this conference".
In the past period of time, ASML unexpectedly became a "internet celebrity company". Everyone has various opinions about ASML, so Shen Bo also hopes to use the platform of the China International Import and Export Fair as much as possible to give everyone a more direct, objective, and comprehensive understanding of ASML.
For the fifth time participating in the Expo, ASML can also be considered a "senior friend". This year's exhibition, ASML will continue its digital journey, leading visitors into virtual wafer factories and showcasing the entire manufacturing process and ASML's panoramic lithography solutions in a digital space. In addition, ASML will also showcase a simulated lithography machine exterior plane model on site at this year's CIIE, and showcase the internal structure of the lithography machine through naked eye 3D videos, leading viewers to explore and understand the core components and basic working principles of ASML DUV (deep ultraviolet) lithography machines.
Shen Bo said that ASML mainly wants to showcase the three business areas of panoramic lithography solutions at the CIIE: lithography machines, computational lithography software, and measurement. "Our manufacturing process is a very complex matter, which includes many, very complex, and challenging technical issues. We have been working continuously in this direction, which is a key point we want to express this year.
Since the beginning of this year, ASML has made significant progress in its business in China. According to Shen Bo, this year ASML's two computing lithography development center teams in Shenzhen and Wuhan have released a new version of the computing lithography product, which has been successfully imported and applied. This can be said to be the first product developed by a Chinese team, and it is also a very meaningful thing for ASML's overall business in China.
At present, the global integrated circuit market terminal continues to be weak due to factors such as geopolitical games, global inflation, and inventory backlog. However, for ASML, this is not the case, and its overall production capacity is still in a state of insufficient supply. "There are currently 35 billion euros of outstanding orders. According to the ASML quarterly report, although the recovery trend in 2024 is not yet clear, the global integrated circuit industry is expected to see a turning point by the end of this year. ASML also expects 2025 to be an important growth year.
Since the delivery of the first stepper lithography machine to China in 1988, ASML has been deeply rooted in the Chinese market for more than 30 years. Nowadays, ASML has 16 offices, 12 warehousing and logistics centers, 3 development centers, 1 training center, and 1 maintenance center in China, making China one of ASML's most important markets.
At the beginning of 2018, the team of ASML in China was around 500 people, and by the end of this year, it has increased to over 1600 people. This year, we have opened more than 200 positions in China, and next year, we also plan to have sustainable growth. The specific positions are still being counted, "said Shen Bo, Compared to the term 'layout', I would prefer to say that we are constantly investing in following the growth of our business. Whether it's team investment, investment in the spare parts field, or even investment in product development, we are constantly investing in China
Of course, Shen Bo also inevitably talked about the impact of export controls on his business. Starting from next year, some aircraft models will be included in the export control catalog, but overall, the demand in the Chinese market will be strong next year. Even considering the impact of geopolitical factors, the short-term impact will not be too significant, and the impact on sales in the Chinese market will be around 10% to 15%. In the long run, we believe that the industry as a whole will show an upward trend until 2030, and there will be cyclical fluctuations in the industry, But the overall trend will not change significantly.