Computer chip shortage boosts ASML’s annual revenue 28% to €18.4 billion

Chip machine manufacturer ASML had a record year due to the worldwide chip shortages pushing the demand for machines made by the Dutch company. Last year's turnover increased to 18.6 billion euros, from 14 billion euros in 2020. For this year, ASML is counting on further strong growth in revenues.

The company achieved a net profit of 5.9 billion euros, compared to 3.6 billion euros a year earlier. The shortages of semiconductors mean that major chipmakers are making considerable investments to increase production capacity, and ASML is taking advantage of this. In an explanation, CEO Peter Wennink spoke of a "strong year of growth in a dynamic environment."

According to ASML, the demand for its systems exceeds its own production capacity. Customers even ask for chip machines to be delivered before they are fully tested.

ASML is very successful with the sale of its state-of-the-art EUV machines. These specialized machines can make much smaller and more powerful semiconductors. The devices cost more than 100 million euros and are the size of a bus. Forty-two of these were delivered last year. The company also provides less sophisticated machines for processors and memory chips and support services such as software updated to make existing machines more efficient.

The Veldhoven-based company also said it did not expect a recent fire at a branch in Berlin to significantly impact the production of chip machines this year. The fire at the beginning of this month hit the production of parts o fits EUV machines.

ASML, listed in the AEX index, plans to pay out a full dividend of 5.50 euros per share for 2021. That is double the 2020 dividend.