At yesterday's quarterly report conference, TSMC financial director Wendell Huang was forced to admit that the $4 billion reduction in capital expenditure during the current year would be due to two factors: a decline in demand for 7-Nm products and a delay in the delivery of the required lithographic equipment; both factors had an impact on the decline in TSMC costs about equally, and the latter had a negative impact on the listing of ASML shares.
As Reuters explained, ASML officials were unable to comment on the situation because it was prohibited by law in the light of the proximity of the next quarterly report, which is scheduled for Monday, but the shares of the manufacturer of lithographic equipment lost 9.1 per cent after the TSMC management announced that capital costs should be reduced this year from $40 billion to $36 billion.
In 2021, 44% of ASML's revenue was generated by Taiwanese clients, most of whom are TSMC. According to ASML's own projections, in the third quarter, the company was expected to generate between Euro5.1 billion and Euro5.4 billion. ING analysts believe that any irregularities in the semi-conductor market should have a minimal impact on ASML's business, as the demand for such equipment is higher than the supply, and inflation pushes the company's prices and revenues up. In a specific situation, ASML continues to risk a short-term loss of revenue due to delays in the delivery of equipment, and the risk of a lower rate of return in this sense is even higher, as costs increase.