ASML shrugs off China slump with faith in AI-fueled chip demand

Europe's tech darling ASML has warned Chinese demand for its chipmaking kit will plummet next year, as Beijing doubles down on home-grown alternatives in response to Uncle Sam's export restrictions and trade war shenanigans.

The Dutch firm remains bullish overall, pointing to continued momentum around AI investments driving demand for more advanced logic and memory from the chip companies that snap up its lithography machines.

But ASML pulled no punches about the expected drop in sales to Chinese customers next year, as it coughed up financial results for Q3 2025. China has been a big buyer of the company's kit over the past several years.

"We expect China customer demand, and therefore our China total net sales in 2026 to decline significantly compared to our very strong business there in 2024 and 2025," said chief executive Christophe Fouquet.

At one point last year, the Middle Kingdom was ...