ASML is the world's leading provider of lithography systems for the semiconductor industry. Headquartered in Veldhoven, the Netherlands, ASML employs more than 7,000 people.
VELDHOVEN, the Netherlands, December 18, 2008 - ASML Holding NV (ASML) announces today that it has seen a severe deterioration in its order intake due to the global economic crisis. “Never before have we witnessed such a sharp and sudden fall-off in lithography system demand, triggered by an unprecedented mix of falling end-demand for semiconductors, weak memory prices and restricted access to capital for our customers,” said Eric Meurice, President and Chief Executive Officer of ASML. “This steep decline in our business activity is forcing us to adjust our organization in order to lower our cost base significantly by using the full flexibility of our business model, while maintaining our important strategic investments in research and development (R&D). Although painful for our stakeholders in the short term, the current effort offers ASML an opportunity to emerge healthier and fundamentally stronger when the overall semiconductor market recovers,” Meurice said.
ASML is making the following observations about the current quarter:
ASML is implementing the following set of measures to structurally lower our cost base, while keeping intact our key R&D programs and a level of capacity to ramp production back to customer needs without lengthening lead times:
The implementation of these measures, in addition to earlier actions taken within a 6-month old program to improve overall efficiency, will result in a cost reduction of more than EUR 50 million per quarter by Q1 2009 (EUR 200 million annualized) compared with the cost structure run rate in Q2 2008. The cost savings will come mainly from cost of goods (relating to ASML’s manufacturing and service costs) and SG&A, while efficiency programs will also allow us to reduce R&D expenses without impacting our key research and development programs for next generation lithography systems.
ASML is the world's leading provider of lithography systems for the semiconductor industry, manufacturing complex machines that are critical to the production of integrated circuits or chips. Headquartered in Veldhoven, the Netherlands, ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML. ASML serves chip manufacturers in more than 60 locations in 16 countries.
Forward Looking Statements
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of backlog, IC unit demand, financial results, average sales price, gross margin and expenses. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of credit market deterioration on consumer confidence and demand for our customers’ products, competitive products and pricing, manufacturing efficiencies, new product development and customer acceptance of new products, ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission.
Page updated on 2008-12-18 7:00 CET