ASML Holding(ASML)2021-12-08 10:23ASML Holding N.V. Conference Call Summary Company Overview - Company: ASML Holding N.V. (NASDAQ: ASML) - Event: UBS Global TMT Virtual Conference - Date: December 7, 2021 Key Industry Insights Demand Outlook - Logic Demand: Strong demand driven by digital transformation, 5G, AI, and high-performance computing [2][3] - Memory Demand: Anticipated growth in the high teens for memory, driven by servers and smartphones [3][4] - EUV and DUV: Continued growth expected in both EUV (Extreme Ultraviolet) and DUV (Deep Ultraviolet) segments [4][6] Capacity Plans - EUV Systems: Planning for 55 EUV systems in 2022, with a capacity increase of over 2x from 2020 to 2025 [4][19] - DUV Capacity: Expected to increase DUV unit output by 1.5x, with productivity improvements leading to a potential 2x effective capacity increase [6][20] Supply Chain Challenges - Material Shortages: Experienced delays due to material shortages and logistics issues, impacting revenue recognition [8][9] - Proactive Management: Ongoing efforts to improve communication with supply chain partners to mitigate risks [9][10] Financial Performance Revenue and Margins - Gross Margin Target: Expected gross margin of 54% to 56% by 2025, with a focus on improving operating margins [56][57] - R&D and SG&A: Projected R&D expenses of $3.6 billion and SG&A of $1 billion by 2025 [56] Technological Developments Gate-All-Around Technology - Impact on Lithography: Gate-all-around technology expected to enhance control at smaller features, leading to increased lithography intensity [30][32] - Adoption Timeline: Initial adoption planned for 2022, with further implementations in subsequent years [34] 3D DRAM and EUV - EUV Adoption in DRAM: All major DRAM customers planning to implement EUV in their product roadmaps [37][39] - Future of 3D DRAM: Ongoing exploration of next-generation memory technologies, with EUV playing a critical role [38][39] Geopolitical Considerations - China Export Licenses: ASML requires export licenses from the Dutch government to ship EUV systems to China, currently awaiting approval [28] - DUV Shipments: Continued shipments of DUV systems to China, as current nodes do not require EUV [28] Conclusion - Growth Drivers: Strong demand across logic and memory segments, with significant capacity expansion plans in place - Challenges: Supply chain issues and geopolitical tensions remain key risks, but proactive management strategies are being implemented - Long-Term Outlook: Positive growth trajectory anticipated, with advancements in technology and increased adoption of EUV and High NA systems expected to drive future performance [57][58]