Smaller size, bigger capability is a well-established trend in the chip industry. And thanks to the joint efforts of our 39,000 people working together with suppliers, customers and innovation partners, we are taking that ever further.
Every day we push the boundaries of physics and shrink patterns to help shape the future of life, work and play across the planet. Strongly embedded in a global innovation ecosystem, we enable groundbreaking technology that can help humanity manage challenges and seize opportunities by facilitating smart living and mobility, accessible healthcare, food security and the transition to renewable energy.
Record performance in a challenging year
In conversation with our President, Chief Executive Officer and chair of the Board of Management, Peter Wennink.
2022 was another outstanding year for ASML, as our committed people worked alongside talented partners and dedicated suppliers to deliver on our business strategy.
Our teams continued to push the boundaries of physics during the year – shrinking patterns to enable technologies that can transform everything from healthcare and agriculture to connectivity and transport. And customers responded by filling our order book to record levels.
At the same time, we have continued to refine our ESG sustainability strategy, which acknowledges and addresses the impact we have on the environment and society. It underpins our drive to be a responsible organization and a force for good in the world.
Our performance in 2022 was affected by a set of global factors that were outside our control. The aftermath of COVID-19, the ongoing war in Ukraine and the resulting energy crisis, and struggles among some of our supply chain partners to deliver according to our agreed plans have combined to cause significant turbulence. Although we have at times struggled operationally, from a strategic standpoint we have continued to deliver.
Looking at the short-term future, we will have to deal with the shocks in the system, and I am sure that we will do so, supported by growing demand for semiconductors and semiconductor equipment. Beyond 2023, I am very positive about our industry in general and about ASML in particular.
"Our investments are set to increase capacity.”
Peter Wennink, Chief Executive Officer
Total net sales
Innovation – the driving force behind our progress
In conversation with our President, Chief Technology Officer and Vice Chair of the Board of Management, Martin van den Brink.
For us, innovation is all about making a difference in the marketplace. Our goal is always to give customers the products and capabilities they need to make a positive contribution to society. In line with Moore’s Law, microchip scaling continues to deliver real advantages, with our lithography technology helping our customers to produce chips that are three times more energy-efficient every two years.
We delivered important developments in both DUV and EUV technology during the year. All our current EUV customers have now placed orders for EUV High-NA. Customers will start their R&D in 2024–2025, aiming for high-volume manufacturing in 2025–2026.
"As CTO, I’m always asking myself how I can best drive innovation at ASML and make sure the pipeline continues to be filled. And one of the most important factors in that is people."
Martin van den Brink, Chief Technology Officer
Explore what makes ASML tick and find out more about our company
While the world faces a range of macro challenges – including the war in Ukraine, significant increases in energy costs, post-COVID-19 supply chain constraints, inflationary pressures and talk of a global recession – our marketplace remains characterized by a series of trends and opportunities. The most significant of these are outlined below:
Increasing market demand
The convergence of wireless communication, telecom, media and cloud via connected devices continues to drive demand for advanced semiconductors across the globe.
The current trade environment presents significant challenges for the global semiconductor industry, with trade tensions and increased protectionism likely to continue.
Expanding R&D investments
Our industry is evolving rapidly, making access to the latest technologies, chip designs and manufacturing processes a must to remain competitive.
The global semiconductor industry is refocusing on increasing scale and proficiency in core competencies as well as expanding into new capabilities and new markets.
Acting on climate change
Climate change is an urgent matter for governments, companies and individuals around the world.
The next level of computing is approaching at speed. The era of mobile computing is moving toward an immersive world of ‘ubiquitous computing’, with computing power available wherever you go.
This is driving significant growth opportunities for ASML and our customers. In 2022, the semiconductor industry delivered over 1.11 trillion chips, representing a $618 billion market. Analysts predict that this market could be valued at more than $700 billion by 2025.
Driven by semiconductor application areas such as the energy transition, electrification of cars, predictive healthcare and smart homes, the following semiconductor industry markets continue to grow:
Wired and wireless infrastructure
Servers, data centers and storage
Our purpose is to unlock the potential of people and society by pushing technology to new limits – with a vision that we enable groundbreaking technology to solve some of humanity’s toughest challenges. Our strategy and priorities are designed to deliver on these points and create value for our stakeholders.
Our core strategy is to:
Grow our core holistic lithography business
Secure unique supply chain capabilities to ensure business continuity
Move toward adjacent business opportunities
Increase our focus on ESG sustainability
Our current focus is on five business priorities: strengthen customer trust, build a winning position in holistic lithography, drive DUV competitiveness, secure EUV 0.33 NA high-volume manufacturing performance, and insert EUV 0.55 NA (High-NA) in Logic and DRAM high-volume manufacturing from 2025.
Our success depends on strong, sustainable relationships with all stakeholders in the value chain.
Our holistic approach sits at the heart of this model, enabling shrink while improving the availability of our lithography systems, reducing down-time and overall costs, and optimizing yield for our customers. We aim to create sustainable value for our stakeholders – shareholders, customers, suppliers, employees and society – and to use their input to develop our strategy, products and services.
Strong demand driving an outstanding performance
In conversation with our Executive Vice President and Chief Financial Officer, Roger Dassen.
Overall net sales rose by €2.6 billion over 2021 to a total of €21.2 billion. Logic system sales were up by 4.0% to €10.0 billion and Memory system sales rose by 34.2% to €5.5 billion. Net service and field option sales grew by 15.8% to €5.7 billion. Our gross profit increased, mainly due to the volume increase in DUV, our NXE:3600D value proposition and continued growth in our installed base business.
I believe ASML is well-placed to deliver more record performances in the future – providing strong cash returns to shareholders, collaborating with our partners and suppliers, supporting our people and enabling our customers to manufacture technology that will continue to have a big impact on the future of our planet.
"We are experiencing growth at an unprecedented rate."
Roger Dassen, Chief Financial Officer
Net sales increase
We achieved another record year for sales in 2022, driven by a strong increase in demand from customers across all technologies.
Total net sales increased by €2.6 billion, up by 13.8%, reflecting an increase in net system sales of 13.0%, and an increase in net service and field option sales of 15.8% compared to 2021.
Net system sales
Net service & field option sales
Numbers have been rounded for readers' convenience.
Increase in R&D costs from 2021
Research and development (R&D)
In 2022, we invested €3.3 billion in R&D compared to €2.5 billion in 2021.
We increased our investment in R&D across all business areas to support our holistic lithography solutions. The most significant investments were directed towards further enhancing our EUV high-volume manufacturing, as well as our development of EUV 0.55 NA (High-NA).
In addition, we continued to support our DUV portfolio – notably the introduction of our latest-generation immersion system NXT:2100i for the most critical DUV layers and the dry system NXT:870. We also invested in areas such as single-beam inspection, e-beam metrology and optical metrology.
Investor Day 2022
In November, we held an Investor Day where our President & CEO Peter Wennink and Executive Vice President & CFO Roger Dassen discussed our long-term strategy, megatrends, demand, capacity plans and business model to support the company’s future growth.
See the presentations and recording of Investor Day 2022.
ESG sustainability strategy
We aim to be a leader in sustainability, and to continue driving progress towards inclusive and sustainable growth for all.
Our material environmental, social and governance (ESG) topics represent our most significant impacts on the economy, environment and people, and aim to contribute to the United Nations’ Sustainable Development Goals. We update our materiality annually based on stakeholder engagement, developments within ASML and the context in which we operate.
We are committed to reducing our environmental footprint both from our operations and the use of our products and services.
We develop lithography technology that enables manufacturers to make more energy-efficient microchips. Reducing our environmental footprint and managing our waste – both from our operations and in the use of our products and services – is key to our ESG practices.
Our ambition is to achieve carbon neutrality
We are aiming for net zero emissions in our operations (scope 1 and 2) by 2025. For our supply chain, we are targeting net zero emissions by 2030, and in our products’ use by our customers (scope 3) by 2040.
To achieve these aims, we are committed to lowering our carbon footprint wherever we can and to increasing the productivity of our products, while also working to reduce their absolute energy consumption.
We also aim to minimize waste and maximize the value from the materials we use, and to repurpose our products across their life cycles.
Savings from re-used parts
Scope 1&2 CO2e emissions
Scope 3 CO2e emissions
We want to ensure that responsible growth benefits all our stakeholders.
As a multinational technology company, we impact many people’s lives, both directly and indirectly. We want to have a positive role in society – for our employees, our supply chain, everyone involved in our innovation ecosystem and the communities around us.
We want to have a positive role in society, including for our people and partners
We aim to be a valued and trusted partner, improving the quality of life for all, and supporting people in disadvantaged communities.
We also aim to provide the best possible employee experience. Our engaged, diverse and highly skilled employees are critical to the performance of our organization and our long-term success as a company. We work hard to attract the world’s top talent, and focus on helping them reach their full potential.
We are part of a global innovation ecosystem. We develop technology together with our partners and our collaborative knowledge network. We set a high bar for our world-class supplier network to achieve the innovations we strive for, ensuring we conduct our business in a responsible and sustainable manner.
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Contribution to EU research projects
We champion good integrated corporate governance to build a relationship of trust, respect and mutual benefit with our stakeholders – shareholders, customers, suppliers, employees and society.
We commit to act on our responsibilities and fully anchor them in the way we do business through our focus on integrated governance, engaged stakeholders and transparent reporting.
Our aim is to be recognized and respected as a responsible business in everything we do.
As the innovator that makes vital systems for the chip industry, we have a responsibility to lead by example. We are committed to conducting our business in compliance with applicable laws and regulations in all the countries we operate in.
We strive to work to the highest standards of integrity and continuous improvement of our governance, based on feedback we actively procure from our internal and external stakeholders. We want to conduct our business with honesty and embrace open dialogue and knowledge sharing throughout our ecosystem.
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Females in senior job grades
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