ASML, a key supplier of equipment to computer chip manufacturers, on Thursday said it would launch a EUR 12 billion (nearly Rs. 98,380 crore) share buyback programme to run through 2025.
In an announcement ahead of an investors’ day on Friday, the company said it expects revenue of EUR 30 billion (nearly Rs. 2,45,600 crore) to EUR 40 billion (nearly Rs. 3,27,550 crore) by 2025, up from a previous estimate of EUR 24 billion (nearly Rs. 1,96,500 crore) to EUR 30 billion.
The company’s 2021 sales totalled EUR 18.6 billion (nearly 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 is moving ahead with plans to expand capacity.
“While the current macro environment creates near-term uncertainties, we expect longer-term demand and capacity showing healthy growth,” the company said in a statement.
Shares jumped on the announcement and closed 9.7 percent higher at EUR 544.20 (nearly Rs. 44,600) in Amsterdam.
The company said it expects sales to continue growing, with a sales target of EUR 44 billion (nearly Rs. 3,60,500 crore) to EUR 60 billion (nearly Rs. 4,91,700 crore) by 2030.
ASML dominates the market for lithography systems, large machines used to map out the circuitry of semiconductors.
It said it expects to expand production of its flagship EUV machines, which cost about EUR 200 million (nearly Rs. 1,600 crore) each, to 90 annually from around 60 at present, by 2026.
© Thomson Reuters 2022