Q4 2023 ASML Holding NV Earnings Press Conference

January 24, 2024

Monique Mols: Welcome everybody to the press conference of ASML. We are going to talk you through the results of Q4 2023 and the full year 2023. As usual, I'm not doing this all by myself. I will have the company of Roger Dassen, our CFO, and Peter Wennink, our CEO. Let me talk you quickly through the program. You've seen our press release, and by the way, my name is Monique Mols, I'm Head of Media Relations. Peter will start by explaining industry developments and our progress, and then Roger will take over and talk you through our financial results of this year. Then we have plenty of opportunity for Q&A. We also have people online. Thank you for joining, and they will have the opportunity also to ask questions.

[music].

welcome everybody to the press conference of ASML we are going to talk you through the results of Q4 2023 and the full year 2023 as usual I'm not doing this all by myself I've got I will have the the company of Roger Dassen our CFO and Peter Wennink our CEO let me talk you quickly through the program you've seen our press release and by the way my name is Monique Molls I'm head of media relations Peter will start by explaining industry developments and our progress and then Roger will take over and talk you through our financial results of this year and then we have plenty of opportunity for Q&A we also have people online thank you for joining and they will have the opportunity also to ask questions there's a little screen where you can submit your question please also state very clearly your name and the publication you work for the Q&A session is only for media and of course we've got people in the room who of course are allowed to ask questions thank you for coming all the way to Veldhoven for some there was a little bit of a more of a journey than for others but let's let's start with our presentation and we'll come back to you later with the Q&A Peter if I can invite you on stage absolutely oh yeah have

Welcome everybody to the press conference of AML, we are going to talk you through the results of our Q4 2023 and the full year 2023 as usual I'm not doing this all by myself I've got I will have the company of Wuxi Dasa, our CFO and Peter winning <unk>.

Wuxi Dasa: Our our CEO.

Wendy Mills: Let me talk it quickly through the program, you've you've seen our press release and by the way My name is when he malls I'm head of media relations.

Wendy Mills: Peter will start by explaining industry developments and our progress and then Russia will take over and talk you through our financial results of this year and then we have plenty of opportunity for Q&A. We also have people online. Thank you for joining him and they will have the opportunity also to ask questions. There is a little screw.

Monique Mols: There's a little screen where you can submit your question. Please also state very clearly your name and the publication you work for. The Q&A session is only for media. Of course, we've got people in the room who, of course, are allowed to ask questions. Thank you for coming all the way to Veldhoven. For some, that was more of a journey than for others. Let's start with our presentation, and we'll come back to you later with the Q&A. Peter, if I can invite you on stage.

Wendy Mills: Where you can submit your question. Please also state very clearly your name and the publication you work for the Q&A session is only for media and of course, we've got people in the room, who of course are allowed to ask questions. Thank you for coming all the way to to VAALCO friend for some there was a little bit of a more of a journey than for others, but let's see.

Peter will start by explaining industry developments and our progress, and then Roger will take over and talk you through our financial results for this year, and then we have plenty of opportunity for Q&A. We also have people online, thank you for joining us, and they will also have the opportunity to ask questions. There's a little screen where you can submit your questions; please also state very clearly your name and the publication you work for.

Wendy Mills: Let's start with a presentation and we'll come back to you later with the Q&A Peter if I can invite you on stage.

Peter Wennink: Absolutely.

Wendy Mills: Absolutely.

Monique Mols: Oh, you have this.

Peter: Oh, you have us.

Peter Wennink: Good morning and good afternoon or good evening or wherever you are. First of all, I'd like to start off with some key messages, but, you know, it's not going to be a big surprise. I think this industry and ASML specifically is driven by megatrends. I said it on several occasions, the major societal transitions that we're witnessing these days, whether it's the climate change, the energy transition, the digital transition, the world population that's getting older and needs more care. These are major transitions that don't happen once in a lifetime. They happen once in several lifetimes. I think we need to realize that. Those megatrends, they need solutions.

Peter T. F. M. Wennink: Good morning and good afternoon or good evening or wherever you are. First of all,

Peter: Good morning. Thank.

Peter: Hey, good afternoon, or good evening wherever you are.

Peter: First of all.

Like to start off with some key messages, but theres not going to be a big surprise.

Peter T. F. M. Wennink: I'd like to start off with some key messages, but, you know, it's not going to be a big surprise. I think this industry, and ASML specifically, is driven by megatrends, and I've said it on several occasions.

Peter: I think this industry in Asia more specifically.

Peter: It's driven by Megatrends and I said it on several locations.

Peter T. F. M. Wennink: The major societal transitions that we're witnessing these days, whether it's the climate change, the energy transition, the digital transition, the world population that's getting older and needs more care, these are major transitions that don't happen once in a lifetime, they happen once in several lifetimes.

The Q&A session is only for the media, and of course, we've got people in the room who are, of course, allowed to ask questions. Thank you for coming all the way to Veldhoven. For some, that was a little bit more of a journey than for others, but let's start with our presentation, and we'll come back to you later with the Q&A. Peter, if I can invite you on stage,

Peter: The major societal transitions that we're witnessing these days, where they see climate change energy transition the digital transition.

Peter T. F. M. Wennink: First of all, I'd like to start off with some key messages, but, you know, it's not going to be a big surprise. I think this industry, and ASML specifically, is driven by megatrends, and I've said that on several occasions.

Peter: The the rural population is getting older her needs more care is a major transitions that don't happen once in a lifetime that happened in once in several lifetimes.

Peter: Absolutely. Oh, you have this. Good morning, and good afternoon, or good evening, or wherever you are.

Peter T. F. M. Wennink: And I think we need to realize that and those megatrends, they need solutions.

Peter: And I think we need to realize that in those better trends they need solutions.

Peter T. F. M. Wennink: The major societal transitions that we're witnessing these days, whether it's climate change, the energy transition, the digital transition, the world population that's getting older and needs more care, these are major transitions that don't happen once in a lifetime; they happen once in several lifetimes. And I think we need to realize that and those megatrends. They need solutions. And I think, no matter how you look at it, every part of those solutions will be at the core, that is, this semiconductor, that is either compute power or data or the artificial intelligence that we need to actually solve those problems.

Peter Wennink: I think no matter how you look at it, every part of those solutions will be at the core. There's this semiconductor. There's this either compute power, or data, or the artificial intelligence that we need to actually solve those problems. I mean, it will happen, and we need it. By the way, semiconductors are driven by Moore's Law. It's a law of scaling. It's an empirical law of economics. The scaling engines are one of the biggest, and probably the most important scaling engine has been lithography. Basically, they're making the structure smaller. Lithography intensity will go up when we need to innovate to actually address the challenges that come out of these big societal changes. We have the product portfolio to do it.

Peter: No I think no matter, how you look at it every part of those solutions will be at the core of this this semiconductor.

Peter T. F. M. Wennink: And I think, no matter how you look at it, every part of those solutions will be at the core, that's this semiconductor, that is either compute power or data or the artificial intelligence that we need to actually solve those problems. I mean, it will happen and we need it. And lithography has been always, and everything, by the way, semiconductors are driven by Moore's law, it's a law of scaling, it's an empirical law of economics.

Peter: First of all, I'd like to start off with some key messages, but it's not going to be a big surprise. I think this industry, and ASML specifically, is driven by megatrends, and I have said that on several occasions. The major societal transitions that we're witnessing these days, whether it's climate change, the energy transition, the digital transition, the world population that's getting older and needs more care, these are major transitions that don't happen once in a lifetime; they happen once in several lifetimes. And I think we need to realize that these mega trends need solutions. I think no matter how you look at it, every part of those solutions will be at the core of this semiconductor. That is, it's either compute power or data or the artificial intelligence that we need to actually solve those problems. I mean, it will happen, and we need it.

Peter: It's either compute power or data or the artificial intelligence that we need to actually solve those problems I mean.

Peter: It will happen and we need it and.

Peter: And lithography has been always and everything but by the way semiconductors are driven by Moore's law is the law scaling is an empirical of economics.

Peter T. F. M. Wennink: And the scaling engines, one of the biggest and probably the most important scaling engine has been lithography. Basically, they're making the structure smaller. So lithography intensity will go up.

Peter: And the scaling engine said one of the biggest and probably the most important scaling engine has been lithography basically to making the structure smaller so lithography intensity will go up.

Peter T. F. M. Wennink: I mean, it will happen, and we need it. And lithography has always been, and everything, by the way, semiconductors are driven by Moore's law, it's a law of scaling, it's an empirical law of economics. And the scaling engines, one of the biggest and probably the most important scaling engines has been lithography. Basically, they're making the structure smaller. So lithography intensity will go up. When we need to innovate to actually address the challenges that come out of these big societal changes, and we have the product portfolio to do it, I'll show you later on, we've always had a product portfolio to do it, and Sixty Percent. It's not only us, it's our task, because we're a system integrator, we're a system architect, that our supply chain and our partners will follow, and they will do that. But everything in the context of our responsibility towards society. Our ESG targets were very clearly explained last year, and we'll publish our annual report, and you can see our progress going forward.

Peter T. F. M. Wennink: When we need to innovate to actually address the challenges that come out of these big societal changes, and we have the product portfolio to do it.

Peter: When we need to innovate to actually address the challenges that come out of these big societal.

Peter: Changes and we have the product portfolio to do it.

Peter Wennink: I mean, I'll show you later on, we've always had a product portfolio to do it, but the complexity of our challenges and thereby the complexity of the machines, the lithography machines, is also increasing. We have that complete portfolio. It's not only lithography, it's also metrology and inspection systems. It's software. It's the integration of our capabilities, our holistic portfolio that will enable our customers to deal with those challenges. Based on that, we do believe, strongly believe that what we've said a few years ago, that we believe that by next year, our sales will be anywhere between EUR 30 and 40 billion with a gross margin of anywhere between 54% and 56%.

Peter: Okay.

Peter T. F. M. Wennink: I'll show you later on, we've always had a product portfolio to do it.

Peter: I'll show you later, all we've always had our product portfolio to do it.

Peter: But the complexity of our challenges and thereby the complexity of the machines lithography machines is also increasing but we have that complete portfolio is only lithography and metrology and inspection systems. It's software, it's the integration of our capabilities our holistic.

Peter: And lithography has always been, and everything, by the way, semiconductors are driven by Moore's Law. It's a law of scaling. It's an empirical law of economics. And the scaling engines, one of the biggest and probably the most important scaling engines has been lithography, basically making the structure smaller. So lithography intensity will go up, um, when we need to innovate to actually address the challenges that come out of these big societal changes, and we have the product portfolio to do it. I mean, I'll show you later on. We've always had the product portfolio to do it.

Peter: Portfolio that will enable our customers to deal with those charges and based on that we do believe strongly believe that what we've said a few years ago that we believe that by next year, our sales were anywhere between 30 and $40 billion.

Peter: With a gross margin of anybody anywhere between 54 and 56%.

Peter Wennink: By the end of the decade, it's going to be anywhere, depending on, I would say, macroeconomic growth profiles, anywhere between EUR 44 billion and 60 billion with margins between 56% and 60%. It's not only us, it's our task, because we're a system integrator, we're a system architect, that our supply chain and our partners will follow, and they will do that. Everything in the context of our responsibility towards society, our ESG targets have been very clearly explained last year. We'll publish our annual report, and you can see our progress going forward. Of course, in the end, we're a business. We'll make money, we'll return cash to our shareholders, and we've always done, and Roger will talk about that a bit later. Now, I won't dwell on this. Market expectations will remain unchanged.

Peter: But by the end of the decade is going to be anywhere depending on I would say macroeconomic growth profiles anywhere between <unk> 44, and <unk> 60 billion with margins between 56 and 60% and.

Peter: But the complexity of our challenges and, thereby, the complexity of the machines, the lithography machines, is also increasing. But we have that complete portfolio. It's not only lithography, it's also metrology and inspection systems. It's software.

Peter T. F. M. Wennink: and Sixty Percent.

Peter T. F. M. Wennink: It's not only us, it's our task, because we're a system integrator, we're a system architect.

Peter: As all of US is our task because we are a system integrator, we are a system architect.

Peter: That our supply chain and our partners will follow and they and they will do that.

Peter T. F. M. Wennink: that our supply chain and our partners will follow and they will do that.

Peter: It's the integration of our capabilities, our holistic portfolio that will enable our customers to deal with those challenges. And based on that, we do believe, strongly believe, in what we said a few years ago, that we believe that by next year, our sales will be anywhere between 30 and 40 billion, with a gross margin of anywhere between 54 and 56 percent. But by the end of the decade, it's going to be anywhere, depending on, I would say, macroeconomic growth profiles, anywhere between 44 and 60 billion, with margins between 56 and Sixty percent.

Peter T. F. M. Wennink: But everything in the context of our responsibility towards society, our ESG targets have been very clearly explained last year and we'll publish our annual report and you can see our progress going forward. So, of course, in the end, we're a business, we'll make money, we'll return cash to our shareholders and we've always done that and we'll talk about that a bit later.

Peter: But everything in the context of our.

Peter: Responsibility towards society, our ESG targets had been very clearly explained last year and we will publish our annual report and you can see our progress going forward. So of course in the end, we're a business will make money, we'll return cash to our shareholders and we've always done in Russia will talk about it.

Peter: A bit later now I won't dwell on this.

Peter T. F. M. Wennink: So, of course, in the end, we're a business, we'll make money, we'll return cash to our shareholders, and we've always done that, and we'll talk about that a bit later.

Peter T. F. M. Wennink: I won't dwell on this.

Peter: Market expectations remain unchanged market research firms all about the end of the decade about a trillion dollars, which is just under a doubling of the business for our customers as we see it today.

Peter T. F. M. Wennink: market expectations remain unchanged market research firms all about the end of the decade about a trillion dollars which is

Peter Wennink: Market research firms, all about the end of the decade, about $1 trillion, which is just under a doubling of the business for our customers as we see it today. Now, it's these trends that are really driving this. You know, it's the connected world that is a significant driver for our business and the business of our customers. Of course, it's the infrastructure, it's the cloud infrastructure, but increasingly it's AI. You're only seeing that this is not just a promise for the future, it's happening today. You know, we've seen this in 2023. NVIDIA was very clear on what the capabilities are and showing those capabilities. We've all seen the rise of, you know, generative AI. It's going to happen, but what it needs is more compute power.

Peter T. F. M. Wennink: Just under a doubling of the business for our customers as we see it today.

Peter: It's not only us, it's our task because we're a system integrator, we're a system architect. And that our supply chain and our partners will follow, and they will do that. But everything in the context of our responsibility towards society, our ESG targets were very clearly explained last year, and we'll publish our annual report, and you can see our progress going forward. So, of course, in the end, we're a business, we'll make money, we'll return cash to our shareholders, and we've always done it, and we'll talk about that a bit later. I won't dwell on that.

Peter T. F. M. Wennink: Now and and

Peter: That in and.

Peter T. F. M. Wennink: It's these trends that are really driving this.

Peter: It's these trends that are really driving this.

Peter: It's the connected world.

Peter T. F. M. Wennink: It's the connected world.

Peter T. F. M. Wennink: I won't dwell on this, but market expectations remain unchanged; market research firms all predict that at the end of the decade, about a trillion dollars, which is, Just under a doubling of the business for our customers as we see it today. Now, and And, It's these trends that are really driving this. It's the connected world. There is a significant driver for our business and the business of our customers. And, of course, it's the infrastructure. It's the cloud infrastructure.

Peter T. F. M. Wennink: There is a significant driver for our business and the business of our customers. And of course, it's the infrastructure. It's the cloud infrastructure. But increasingly, it's AI.

Peter: That is a significant driver for our business and the business of our customers and of course, it's the infrastructure, it's the cloud infrastructure, but increasingly its AI.

Peter T. F. M. Wennink: and you're only seeing that this is not just a promise for the future it's happening today you know we've seen this in 2023 and India was very clear on what the capabilities are and showing those capabilities we've all seen the rise of you know generative AI it's going to happen but what it needs is more compute power what it needs is more data storage and the link between the data storage and the compute power and we're already seeing that in our order book our order book for q4 is evidence of this i mean significant euv order book was also driven by the fact that memory customers came back why because there's a bottleneck now we cannot access the full power of the compute power in the in the logic chip for the simple reason that

Peter: And you're already seeing that it is not just the promise for the future is happening today.

Peter: We've seen this in 2023.

Peter: And it was very clear on what their capabilities are and showing dose capabilities. We've all seen the rise of.

Peter: Market expectations remain unchanged, and market research firms all predict that by the end of the decade, about a trillion dollars, which is just under a doubling of business for our customers as we see it today. And it's these trends that are really driving this. It's the connected world. There is a significant driver for our business and the business of our customers, and of course, it's the infrastructure, it's the cloud infrastructure, but increasingly, it's AI. And you're only seeing that it is not just a promise for the future; it's happening today. You know, we saw this in 2023, and India was very clear about what its capabilities are and showing those capabilities. We've all seen the rise of generative AI.

Peter: Janet if AI.

Peter: It's going to happen, but it's what it needs is more compute power what it needs is more data storage and the link between the data storage and compute power and we're already seeing that in our order book Our order book for Q4.

Peter T. F. M. Wennink: But increasingly, it's AI, and you're only seeing that this is not just a promise for the future it's happening today you know we've seen this in 2023 and India was very clear on what the capabilities are and showing those capabilities we've all seen the rise of you know generative AI it's going to happen but what it needs is more compute power what it needs is more data storage and the link between the data storage and the compute power and we're already seeing that in our order book our order book for q4 is evidence of this i mean significant euv order book was also driven by the fact that memory customers came back why because there's a bottleneck now we cannot access the full power of the compute power in the in the logic chip for the simple reason that, The bottleneck of performance memory, performance DRAM is there. So how do you solve it? You basically create high bandwidth memory. How do you do that? EUV. It's that simple. So all these, and what you will see is that AI, Currently, we see it in the data centers, will move to the edge.

Peter Wennink: What it needs is more data storage and the link between the data storage and the compute power. We're only seeing that in our order book. Our order book for Q4 is evidence of this. I mean, significant EUV order book. It was also driven by the fact that memory customers came back. Why? Because there's a bottleneck now. We cannot access the full power of the compute power in the logic chip for the simple reason that the bottleneck of performance memory, performance DRAM is there. How do you solve it? Yeah. You basically create high bandwidth memory. How do you do that? EUV. It's that simple. All these, and what you will see is that AI, currently, we see it in the data centers, will move to the edge. You will see AI coming back into your phone.

Peter: As evidence of this I mean significant EU V order book, well also driven by the fact that memory customers came back why.

Peter: Because there is a bottleneck now we cannot access the full power of the compute power in the in the logic chip for the simple reason that the.

Peter T. F. M. Wennink: The bottleneck of performance memory, performance DRAM is there.

Peter: The bottleneck of of performance memory performance DRAM is there so how do you solve it.

Peter T. F. M. Wennink: So how do you solve it?

Peter T. F. M. Wennink: You basically create high bandwidth memory. How do you do that? EUV. It's that simple.

Peter: You basically create high bandwidth memory, how do you do that EV set simple.

Peter: It's going to happen, but what it needs is more compute power. What it needs is more data storage and the link between the data storage and the compute power. And we're only seeing that in our order book. Our order book for Q4 is evidence of this. I mean, a significant EUV order book was also driven by the fact that memory customers came back. Why?

Peter T. F. M. Wennink: So all these, and what you will see is that AI,

Speaker Change: So all these and what you'll see is that AI.

Speaker Change: Currently we see it in the data centers will move to the edge.

Peter T. F. M. Wennink: Currently, we see it in the data centers, will move to the edge.

Peter T. F. M. Wennink: You will see AI coming back into your phone.

Speaker Change: You will see AI coming back into your phone.

Peter Wennink: Now, the applications might not be there, but that's always how it goes. You first create the technology. If the technology is there, the applications will follow. Now, when we look at the other blocks, climate change and resource scarcity, I mean, the energy transition is not going to happen without a further electrification of society, which needs semiconductors. Smarter use of those limited resources, the smart grid, it's all semiconductors. Also in the social and economic domain, when you think about life sciences, there's an elderly population. I mean, we are, you know, the demographics are against us in that sense, so we need more technology. It's all semiconductors. Now, if you now look at those three blocks, you could roughly say that the advanced stuff, advanced semiconductors, more on the side of the connected world.

Now the applications might not be there, but it's always how it goes you first create a technology.

Peter T. F. M. Wennink: Now, the applications might not be there, but that's always how it goes. You first create the technology, and if the technology is there, the applications will follow.

Speaker Change: If a technology there the applications will follow.

Peter T. F. M. Wennink: Now

Speaker Change: Now.

Peter T. F. M. Wennink: And then when we look at the other blocks, climate change and resource scarcity, I mean, the energy transition is not going to happen without...

Peter: Because there's a bottleneck now. We cannot access the full power of the compute power in the logic chip for the simple reason that the bottleneck of performance memory, performance DRAM, is there. So how do you solve it? You basically create high bandwidth memory. How do you do that in EUV?

Then when we look at the other blocks climate change and resource scarcity I mean, the energy transition is not going to happen without.

Peter T. F. M. Wennink: A further electrification of society, which needs semiconductors.

Speaker Change: A further electrification of society, which need semiconductors.

Peter T. F. M. Wennink: You will see AI coming back into your phone. Now, the applications might not be there, but that's always how it goes. You first create the technology, and if the technology is there, the applications will follow. Now, and then when we look at the other blocks, climate change and resource scarcity, I mean, the energy transition is not going to happen without... A further electrification of society, which needs semiconductors, and a smarter use of those limited resources, the smart grid. It's all semiconductor. And also in the social and economic domain, you think about life sciences, there's an elderly population. I mean, we are, you know, the demographics are against us in that sense, so we need more technology. It's all semiconductor. Now, if you look at those three blocks, you could roughly say that the advanced stuff, advanced semiconductors, is more on the side of the connected world.

Peter T. F. M. Wennink: and a smarter use of those limited resources, the smart grid. It's all Semicner.

Speaker Change: And smarter use of those limited resources the smart grid is all semiconductors.

Peter T. F. M. Wennink: And also in the social and economic domain, you think about life sciences, there's an elderly population, I mean, we are, you know, the demographics are against us in that sense, so we need more technology, it's all semiconductor.

Speaker Change: And also in the social and economic domain and you think about life Sciences is an elderly population I mean, we are the demographics are against us in that sense. So we need more technology, it's all semiconductors.

Peter: It's that simple. So, all these things, and what you will see is that AI, currently we see it in the data centers, will move to the edge. You will see AI coming back into your phone. Now, the applications might not be there, but that's always how it goes. You first create the technology, and if the technology is there, the applications will follow. Now, And then when we look at the other blocks, climate change and resource scarcity, I mean, the energy transition is not going to happen without... a further electrification of society, which needs semiconductors, and a smarter use of those limited resources, the smart grid. It's all semiconductor. And also in the social and economic domain, when you think about life sciences, as an elderly population, I mean, we are, you know, the demographics are against us in that sense.

Peter T. F. M. Wennink: Now, if you look at those three blocks,

Speaker Change: Now if you then look at those three blocks you could.

Peter T. F. M. Wennink: you could

Peter T. F. M. Wennink: Roughly say that the advanced stuff, advanced semiconductors, more on the side of the connected world.

Speaker Change: We're actually say that the advanced stuff ethos imitrex more on the side of the connected world.

Peter Wennink: The climate change, resource scarcity, and the social and economic shifts that need to be supported with semiconductors is more mature semiconductors. When you look at this, and everybody talks about AI and about advanced semiconductors, about sub-2 nanometer driven by high-end EUV. Yes, that will happen. The vast majority, the square centimeters, the square inches of silicon, will be driven by the other part. Yeah? Which is where the massive application and just in unit terms is. This is, it's an important slide, not only just to explain you the trends, which we intuitively all know, but also has a translation directly into the semiconductor world. It's our world of advanced semiconductor manufacturing and mature semiconductor manufacturing, which I think is going to be a significant driver of our business, both of them, advanced and mature.

Peter T. F. M. Wennink: But the climate change, resource scarcity, and the social and economic shifts that need to be supported with semiconductors is more mature semiconductors.

Speaker Change: But the climate change the resource scarcity in the social and economic shifts that need to be supported with some of that is more mature semiconductors.

Peter T. F. M. Wennink: So when you look at this,

Speaker Change: So when you look at this.

Peter T. F. M. Wennink: And everybody talks about AI and about advanced semiconductors, about sub-2 nanometer driven by high NA EV. Yes, that will happen. But the vast majority, the square centimeters, the square inches of silicon.

Speaker Change: He talks about AI and about at advanced semiconductors about sub two nanometer driven by high in a EV, yes, it will that will happen, but the vast majority of the square centimeters square inches of silicon.

Peter T. F. M. Wennink: But the climate change, resource scarcity, and the social and economic shifts that need to be supported with semiconductors require more mature semiconductors. So when you look at this, And everybody talks about AI and about advanced semiconductors, about sub-2 nanometer driven by high NA EV. Yes, that will happen.

Speaker Change: Will be driven by the other part.

Peter T. F. M. Wennink: will be driven by the other part.

Speaker Change: Which is where the.

Peter T. F. M. Wennink: which is where the massive application is just in unit terms.

Speaker Change: The massive application it just in unit terms as.

Peter: So we need more technology. It's all semiconductor. Now if you then look at those three blocks... You could roughly say that the advanced stuff, advanced semantics, is more on the side of the connected world.

Peter T. F. M. Wennink: So this is an important slide not only just to explain you the trends which we intuitively all know, but also has a translation directly into the semiconductor.

Speaker Change: So this is an important slide on only just to explain you the trends, which we intuitively you all know, but also has a translation directly into the semiconductor world.

Peter T. F. M. Wennink: But the vast majority, the square centimeters, the square inches of silicon, will be driven by the other part, which is where the massive application is just in unit terms. So this is an important slide not only to explain to you the trends which we intuitively all know, but also to have a translation directly into the semiconductor. It's our world of Advanced Semiconductor Manufacturing and Mature Semiconductor Manufacturing, which I think is going to be a significant driver of our business, both of them, advanced and mature. Now, clearly, we're experiencing a cycle. We're used to dealing with cycles. I mean, that's what the semiconductor industry is all about. If you look at these big cycles driven by these macroeconomic shocks, we can go back more than 20 years ago when we came out of the Y2K era, and we had the dot-com implosion.

Speaker Change: It's our world.

Peter T. F. M. Wennink: It's our world.

Peter: Climate change, resource scarcity, and the social and economic shifts that need to be supported with semiconductors are a more mature semiconductor. So, when you look at this... And everybody talks about AI and about advanced semiconductors, about sub-two nanometers driven by high NAEV. Yes, that will happen.

Peter T. F. M. Wennink: of Advanced Semiconductor Manufacturing and Mature Semiconductor Manufacturing.

Speaker Change: Of advanced semiconductor manufacturing and mature semiconductor manufacturing, which I think is going to be a significant driver of our business both of them advanced and mature.

Peter T. F. M. Wennink: Which I think is going to be a significant driver of our business, both of them, advanced and mature.

Peter Wennink: Now, clearly we're experiencing a cycle. We're used to deal with cycles. I mean, that's what the semiconductor industry is all about. I mean, if you look at these big cycles driven by these macroeconomic shocks, we can go back more than 20 years ago, where we came out of the Y2K era, and we had the dot-com implosion. It created a macroeconomic shock. These downturns last two and a half, perhaps three years, 20 years ago. Now, there was another shock, which was the financial crisis, less than two years. Now we have coming out of COVID, after a decade of quantitative easing, where money was free, you know, but of course, driving inflation, interest rates going up and creating a macroeconomic situation of today, which is also macroeconomic shock, two to three years max.

Peter T. F. M. Wennink: Now

Speaker Change: Now.

Peter T. F. M. Wennink: Clearly we're experiencing a cycle.

Speaker Change: Clearly we are experiencing a cycle.

Speaker Change: Where we used to deal with cycles I mean, that's what the semiconductor industry is all about I mean, and if you look at these big cycles driven by these macroeconomic shocks. We can go back more than 20 years ago, where we came out of the y2k era and we had the dotcom implosion.

Peter T. F. M. Wennink: We're used to deal with cycles. I mean, that's what the semiconductor industry is all about. I mean, if you look at these big cycles driven by these macroeconomic shocks, we can go back more than 20 years ago where we came out of the Y2K era and we had the dot-com implosion.

Peter: But the vast majority, the square centimeters, the square inches of silicon, will be driven by the other part. Yeah, which is where the massive application is just in unit terms. So this is an important slide, not just to explain the transition, which we intuitively all know, but also has a translation directly into the semiconductor world, which is our world, of Advanced Semiconductor Manufacturing and Mature Semiconductor Manufacturing, which I think is going to be a significant driver of our business, both of them, advanced and mature.

Speaker Change: I created a macroeconomic shock.

Speaker Change: and these downturns last

Speaker Change: And he's downturns last two two and a F.

Speaker Change: Two, two and a half.

Speaker Change: Perhaps three years 20 years ago.

Speaker Change: Perhaps three years.

Speaker Change: Twenty years ago.

Speaker Change: Now, we had another shock, which was the financial crisis.

Speaker Change: Now that another shock, which was the financial crisis Western two years.

Speaker Change: Weston Twigg.

Speaker Change: Now we have coming out of COVID.

Speaker Change: Now we have coming out of Covid. After a decade of quantitative easing where money was free now but of course driving inflation interest rate going up and creating a macroeconomic situation of today, which is also macroeconomic shock.

Speaker Change: After a decade of quantitative easing where money was free, but of course driving inflation, interest rates going up and creating a macroeconomic situation of today, which is also a macroeconomic shock.

Peter: Clearly, we're experiencing a cycle. We used to deal with cycles. I mean, that's what the semiconductor industry is all about. If you look at these big cycles driven by these macroeconomic shocks, we can go back more than 20 years ago when we came out of the Y2K era and we had the dot-com implosion. I created a macroeconomic shop. And these downturns last for 2, 2 12.

Peter T. F. M. Wennink: I created a macroeconomic shock, and these downturns last two, two and a half, perhaps three years. Twenty years ago, we had another shock, which was the financial crisis. Weston Twigg. Now we have coming out of COVID. After a decade of quantitative easing where money was free, but of course driving inflation, interest rates going up, and creating a macroeconomic situation of today, which is also a macroeconomic shock. Do the three years. Max. Well, The downturn started in mid-2022; 23 was clearly a downturn year; the first half of 24 were probably in that same, coming out of that, two years, two and a half years. So what about then 2025?

Speaker Change: Do the three years. Max.

Speaker Change: Two to three years Max.

Peter Wennink: Well, the downturn started mid-2022, 2023 was clearly a downturn year. H1 2024, we're probably in that same coming out of that two years, two and a half years. What about then 2025? 2025, in my opinion, just look at the cycles. It's a full upswing year. It's gonna be a good year. We need to prepare 2025 by doing the right things in 2024. Roger will also talk about that. Now, on top of that, 2025 being an upcycle year, we'll have this. Our customers are investing across the globe, more than 20 new fab projects, starting in 2024, taking tools in 2024 towards in the course of this year, but definitely in 2025, where fabs will be opened.

Speaker Change: Well.

Speaker Change: Yeah.

Speaker Change: The downturn started mid-2022, 23 was clearly a downturn year, first half of 24 were probably in that same, coming out of that, two years, two and a half years.

Speaker Change: The downturn started mid 2022 'twenty three was clearly a downturn year first half of 'twenty four of our probably in that same.

Speaker Change: Coming out of that two years, two and a half years.

Speaker Change: So what about then 2025?

Speaker Change: So what about then 2025.

Speaker Change: 2025, in my opinion, just look at the cycles. It's going to be a full upswing year.

2025 in my opinion, and just look at the look at the cycles is going to be if it's a full upswing year.

Peter: Perhaps three years ago. 20 years ago. Now, we had another shock, which was the financial crisis, less than two years ago. Now we are coming out of COVID, after a decade of quantitative easing where money was free, you know, but of course driving inflation, interest rates going up and creating a macroeconomic situation of today which is also a macroeconomic shock, 2-3 years max. The downturn started mid-2022, 2023 was clearly a downturn year, and the first half of 2024 we're probably in the same coming out of that two years, two and a half years. So what about then 2025? 2025, in my opinion; just look at the cycles.

Speaker Change: It's going to be a good year, so we need to prepare.

Speaker Change: Kind of a good year, so we need to prepare.

Speaker Change: 2025 by doing the right things in 2024, and Roger will also talk about that now on top of that twenty-five being at upcycle year.

Speaker Change: 2025 by doing the right things in 2024. And Roger will also talk.

Roger J.M. Dassen: Now on top of that, 25 being an upcycle year.

Speaker Change: We will have this.

Roger J.M. Dassen: We'll have this.

Roger J.M. Dassen: Our customers are investing across the globe, more than 20 new fabs, factories, fab projects.

Peter T. F. M. Wennink: 2025, in my opinion; just look at the cycles. It's going to be a full upswing year. It's going to be a good year, so we need to prepare. By doing the right things in 2024. And Roger will also talk. Now on top of that, 25 being an upcycle year. We'll have this one. Our customers are investing across the globe, more than 20 new fabs, factories, and fab projects. Starting in 2024, taking tools in 2024, towards the course of this year, but definitely in 2025, where fabs will be opened, but the fabs were opened in 2024; we'll take machines in 2025. And it's all driven by geopolitical movements, you know; the world started to realize that dependence on semiconductors is to a certain extent good but not too much dependent, so you see, Chips are popping up around the world, ranging from the U.S., Europe, India, China, Korea, everywhere.

Roger: Our customers are investing across the globe more than 20, new fab Fabs factories fab projects, starting in 'twenty 'twenty four taking tools in 'twenty 'twenty four to watch in the course of this year, but definitely in 2025, where fabs will be opened but the factor over the 'twenty 'twenty four will take machines in 2025.

Roger J.M. Dassen: Starting in 2024, taking tools in 2024, towards in the course of this year, but definitely in 2025, where fabs will be opened, but the fabs were opened in 2024, we'll take machines in 2025. And it's all driven by geopolitical movements, you know, the world started to realize that dependence on semiconductors,

Peter Wennink: The fabs were opened in 2024, will take machines in 2025. It's all driven by geopolitical movements. You know, the world started to realize that dependence on semiconductors is, to a certain extent, good, but not too much dependent. You see CHIPS Act popping up around the world, you know, ranging from the US, Europe, India, you know, China, Korea, everywhere. That creates a situation whereby new fabs will be built and will be opened, and those fabs need machines. That's the second layer of why we believe 2025 is going to be a very strong year, and we need to prepare 2024 to be able to meet that demand in 2025. Can some of that be pulled into 2024? Potentially. It depends on the slope of the recovery, but we'll see.

Roger: And it's all driven by geopolitical movements, you know the world started to realize that the balance on semiconductors.

Peter: It's going to be a full upswing year. It's going to be a good year, so we need to prepare for 2025 by doing the right things in 2024. And Roger will also talk.

Roger J.M. Dassen: is to a certain extent good but not too much dependent so you see

Roger: As to a certain extent, good but not too much dependent and so you see.

Roger J.M. Dassen: Chips act popping up around the world, ranging from the U.S., Europe, India, China, Korea, everywhere.

Roger: Chips Act popping up around the world.

Roger: In.

Speaker Change: Now on top of that, 25 being an upcycled year, we'll have this. Our customers are investing across the globe, more than 20 new fabs, factories, fab projects, starting in 2024, taking tools in 2024 towards the course of this year, but definitely in 2025, where fabs will be opened, but the fabs that will be opened in 2024 will take machines in 2025. It's all driven by geopolitical movements. You know, the world started to realize that dependence on semiconductors is to a certain extent good but not too much so you see Chip's Acts popping up around the world, ranging from the US, Europe, India, China, Korea, everywhere. And that creates a situation whereby new fabs will be built and will be opened, and those fabs need machines. That's the second reason why we believe 2025 is going to be a very strong year.

Roger: Arrange for them from the U S Europe, India.

Roger: <unk>.

Roger: China Korea everywhere and that creates.

Roger J.M. Dassen: A situation whereby...

Roger: A situation whereby.

Roger J.M. Dassen: New FAPs will be built and will be opened, and those FAPs need machines.

Roger: New Fabs will be built and will be opened and those fabs need machines. That's a second layer of why we believe 2025 is going to be a very strong year.

Roger J.M. Dassen: That's the second player of why we believe 2025 is going to be a very strong year and we need to prepare 2024 to be able to meet that demand in 2025. And can some of that be pulled into 2024? Potentially.

Roger: And we need to prepare 2024 to be able to meet that demand and 2025 and can some of that be pulled into 'twenty 'twenty four potentially.

Peter T. F. M. Wennink: A situation whereby new FAPs will be built and will be opened, and those FAPs need machines. That's the second reason why we believe 2025 is going to be a very strong year, and we need to prepare 2024 to be able to meet that demand in 2025. And can some of that be pulled into 2024? Potentially. It depends on the slope of the recovery, but we'll see. Currently, it's too early to say that, so that's why we stay relatively conservative. But this is how we look at the world. We look at 24-25 as a transition period into new areas of growth. And for growth, we need people; now we hire people, 3,000 people last year, 144 nationalities, and for the first time, we can say that we're in the 20% range for our female population for the first time. Now, we have actually hired 27% women in 2023, which is good. We're getting more and more; we're becoming more and more attractive for the female part of the world population to work at a high-tech company and bring their knowledge and their experience in science, technology, engineering, and math studies to ASM.

Roger J.M. Dassen: It depends on the slope of the recovery, but we'll see. Currently, it's too early to say that, so that's why we stay relatively conservative.

Roger: It depends on the slope of the recovery, but will see currently its too early to see.

Peter Wennink: Currently, it's too early to say that, so that's why we stay relatively conservative. This is how we look at the world. We look at 2024, 2025 as a transition period into new areas of growth. For growth, we need people. Now, we hired 3,000 people last year, 144 nationalities. For the first time, we can say that we're in the 20% range for our female population. Now, we have actually hired, of all the people that we hired, 27% women in 2023, which is good. We're becoming more and more, you know, attractive for the female part of the world population to work at a high-tech company and bring that knowledge and that experience in science, technology, engineering, and math studies to ASML.

Say that so that's why we stay relatively conservative.

Roger J.M. Dassen: But this is how we look at the world. We look at 24-25 as a transition period into new areas of growth.

Roger: But this is how we look at the World. We look at 'twenty four 'twenty five as a transition period into new areas of growth.

Roger J.M. Dassen: And for growth we need people, now we hire people, 3,000 people last year, 144 nationalities, and for the first time we can say that we're in the 20% range for our female population, for the first time.

Roger: If a growth when these people now are high people 3000 people last year, one of them 44 nationalities and for the first time, we can say that we're in the 20% range for a female population for the first time.

Roger J.M. Dassen: Now, we have actually hired, of all the people that we hired, 27% women in 2023, which is good. We're getting more and more, we're becoming more and more attractive for the female part of the world population to work at a high-tech company and bring their knowledge and their experience in science, technology, engineering, and math studies, bring that to ASM.

Roger: Now we have actually Hyatt of all the people who had 27% women in 2023, which is good we're getting more and more becoming more and more you know.

Speaker Change: And we need to prepare 2024 to be able to meet that in 2025. And can some of that be pulled into 2024? Potentially. It depends on the slope of the recovery, but we'll see.

Roger: <unk> for the female part of the World population to work at a high Tech company and bring that knowledge and are experiencing science technology engineering and math studies bring it to ASML.

Speaker Change: Currently, it's too early to say that, so that's why we stay relatively conservative. But this is how we look at the world. We look at 24-25 as a transition period into new areas of growth. And for growth, we need people; now we're high people, 3,000 people last year, 144 nationalities, and for the first time, we can say that we're in the 20% range for our female population for the first time. Now, we have actually hired 27% of all the people we've hired in 2023, which is good. We're getting more and more, we're becoming more and more, you know, attractive to the female part of the world population to work at a high-tech company and bring their knowledge and their experience in science, technology, engineering, and math studies to ASM. Also, in the Netherlands, of the 42,000 people, 22,000 are from the Netherlands and 123 nationalities.

Peter Wennink: Also in the Netherlands, you know, we have of the 42,000 people, 22,000 are in the Netherlands, and there are 123 nationalities. Now, we have a discussion in the Netherlands on the international student population, whether we need all those international students. Trust me, we need them. Now, there's more than that. It's also ESG. You know, ESG, I talked about it, is what we did in the environment. While we are building and expanding our production capacity, where every year we're reducing our CO2 footprint in absolute terms. The energy efficiency of EUV as compared to 2019 improved with close to 40% in 2023. On the social part, we're investing in the community.

Roger: And also in the Netherlands, you know we have a of the 42000 people 22000 or in the Netherlands, and the 123 nationalities.

Roger J.M. Dassen: Also in the Netherlands, you know, we have of the 42,000 people, 22,000 are in the Netherlands and 123 nationalities.

Roger J.M. Dassen: Now we have a discussion in the Netherlands on the international student population where we need all those international students. Trust me, we need.

Roger: Now we have a discussion in the Netherlands.

Roger: The international student population, where do we need all those international students Trust me, we need them.

Roger: Now.

Roger J.M. Dassen: No.

Roger: There's more of that it's also ESG.

Roger J.M. Dassen: There's more than that. It's also ESG. ESG, I talked about it, is what we did in the environment.

Peter T. F. M. Wennink: Also in the Netherlands, you know; we have of the 42,000 people, 22,000 are in the Netherlands and 123 nationalities.

Speaker Change: Yes, Yeah I talked about it is we did India environment.

Roger J.M. Dassen: While we are building and expanding our production capacity where every year we're reducing our CO2 footprint in absolute terms.

Speaker Change: While we are building.

Speaker Change: And and expanding our production capacity, where every year, we are reducing our SKU to footprint in absolute terms.

Peter T. F. M. Wennink: Now we have a discussion in the Netherlands on the international student population where we need all those international students. Trust me, we need them.

Roger J.M. Dassen: We actually, the energy efficiency of EUV as compared to 2019 improved with close to 40% in 2023.

Speaker Change: We actually the energy efficiency of E V as compared to 2019.

Peter T. F. M. Wennink: No.

Peter T. F. M. Wennink: There's more than that. There's also ESG. ESG, I talked about it, is what we do in the environment.

Speaker Change: Improved with close to 40% in 2023.

Roger J.M. Dassen: On the social part.

Speaker Change: On the social part.

Peter T. F. M. Wennink: While we are building and expanding our production capacity, where every year we're reducing our CO2 footprint in absolute terms, the energy efficiency of EUV as compared to 2019 improved by close to 40% in 2023. On the social part, we're investing in the community. You know, we can talk about the need for science, technology, engineering, and math-educated students, but you have to do something about it. And that's what we do. We are putting more money than ever now, but also going forward into the social domain and into our, you know, community. And do our people appreciate that?

Roger J.M. Dassen: We're investing in the community.

Speaker Change: We're investing in the community.

Peter Wennink: you know, we can talk about the need for science, technology, engineering, and math-educated students, but you have to do something about it, and that's what we do. We put more money than ever now, but also going forward into the social domain and into our, you know, communities. Do our people appreciate that? Yes. Our engagement score keep going up every year while we're adding thousands of people. That's not easy, because all those people need to land, they need to feel at home, but engagement scores going up is a very good sign that we're doing the right thing. Our attrition rate drops worldwide to 4% in 2023, which is low by any standard. Of course, I was already proud as to, you know, say that now we're hiring 27% of our intake is female.

Speaker Change: Now we have a discussion in the Netherlands about the international student population, whether we need all those international students. Trust me, we need them now. There's more than that. It's also ESG, you know. ESG, I talked about it; it's what we do in the environment. While we are building and expanding our production capacity, where every year we're reducing our CO2 footprint in absolute terms, the energy efficiency of EUV as compared to 2019 improved by close to 40% in 2022. On the social part, we're investing in the community. You know, we can talk about the need for science, technology, engineering, and math-educated students, but you have to do something about it, and that's what we do. We are putting more money than ever, now, but also going forward, into the social domain and into our community. And do our people appreciate that?

Speaker Change: Yeah, we can talk about the need for science technology Engineering, and engineering and math educated students, but you have to do something about it and that's what we do we with more money than ever now, but also going forward into the social domain and into our.

Roger J.M. Dassen: You know, we can talk about the need for science, technology, engineering, and math educated students, but you have to do something about it. And that's what we do. We put more money than ever now, but also going forward into the social domain and into our, you know, community.

Speaker Change: Communities.

Roger J.M. Dassen: And do our people appreciate that? Yes, our engagement score keeps going up every year while we're adding thousands of people.

Speaker Change: And who are people appreciate that yes, our engagement score keep going up every year, while we're adding thousands of people.

Roger J.M. Dassen: That's not easy, because all those people need to land, they need to feel at home, but engagement scores going up is a very good sign that we're doing the right thing.

Speaker Change: Not easy because all those people need to land they need to feel at home, but engagement scores going up is a very good sign that we're doing the right thing.

Speaker Change: Our attrition rate drops worldwide to 4% in 2023, which is low by any standard.

Roger J.M. Dassen: Our attrition rate drops worldwide to 4% in 2023, which is low by any standard. And of course, I was already proud to say that now we're hiring 27% of our intake is female.

Speaker Change: Of course, I was already proud as to say that now we're hiring 27% of our intake is female.

Speaker Change: Yes, our engagement score keeps going up every year while we're adding thousands of people. That's not easy, because all those people need to land, they need to feel at home, but engagement scores going up is a very good sign that we're doing the right thing. Our attrition rate drops worldwide to 4% in 2023, which is low by any standard. And of course, I was already proud to say that now we're hiring 27% of our intake is female. And on governance, transparency, and it's been recognized by many. Now, HiNAE, that's the tool that we shipped at the end of the year. Very proud, shipped it to one of our major customers, Intel. It arrived in the United States, and it's going to be a workhorse it's going to be a workhorse the second half of the decade into the well into the next decade yeah and to make sure that we can actually execute on that promise of artificial intelligence but also the promise of solving some of these big societal problems with the help of semiconductors and you know it's something I would like to just, Share with you, I mean, April 1st this year, we celebrate our 40th anniversary, and we started in 1984 with a system a PIS system as you can see just look at the size of the of the of the human next to the machine and then you look at the size of the humans or size of the machine next to the humans today i mean it's a bit strange over 40 years time you know we've increased the size of the machines while we reduced the size of the semiconductor, So the smaller the feature size, the bigger the machine.

Peter Wennink: On governance, transparency, and has been recognized by many institutions. Now, High-NA. This is the tool that we shipped at the end of the year. Very proud. Shipped it to one of our major customers, Intel. It arrived in the United States, and it's going to be a workhorse. It's going to be a workhorse the second half of the decade into the next decade, yeah. To make sure that we can actually execute on that promise of artificial intelligence, but also the promise of solving some of these big societal problems with the help of semiconductors. You know, something I would like to just share with you.

Roger J.M. Dassen: And on governance, transparency, and it's been recognized by many.

Speaker Change: And on governance.

Speaker Change: Banshee and has been recognized by many institutions.

Speaker Change: Now.

Roger J.M. Dassen: Now

Roger J.M. Dassen: HiNAE, that's the tool that we shipped at the end of the year. Very proud, shipped it to one of our major customers, Intel. It arrived in the United States.

Speaker Change: Hi, Nate this.

Speaker Change: That is the shift that is the tool that we ship.

Speaker Change: And at the end of the year.

Speaker Change: I'm very proud shifted to one of our major customers Intel It arrived in the United States and is going to be a workhorse, there's going to be a workhorse. The second half of the decade, they do that and well into the next decade and to make sure that we can actually execute on that promise.

Roger J.M. Dassen: and it's going to be a workhorse it's going to be a workhorse the second half of the decade into the well into the next decade yeah and to make sure that we can actually execute on that promise of artificial intelligence but also the promise of solving some of these big societal problems with the help of semiconductors and you know it's something I would like to just

Speaker Change: <unk> artificial intelligence, but also the promise of solving some of these big societal problems with the help of semiconductors and.

Speaker Change: That's something I would like to just share with you I mean April 1st this year we.

Peter Wennink: I mean, 1 April this year, we celebrate our 40th year anniversary, and we started in 1984 with a system, a PAS system, as you can see. Just look at the size of the human next to the machine, and then you look at the size of the humans or size of the machine next to the humans today. I mean, it's a bit strange. Over 40 years' time, you know, we've increased the size of the machines while we reduced the size of the semiconductors. The smaller the feature size, the bigger the machine. That's what you see as a clear evidence. But also we've always been able to provide the market with what they need. Yeah. We will keep doing that also going forward. The High-NA tool was just the next step in that evolution.

Roger J.M. Dassen: Share with you, I mean, April 1st this year, we celebrate our 40th anniversary.

Speaker Change: Celebrate our 40th anniversary.

Roger J.M. Dassen: and we started in 1984 with a system a PIS system as you can see just look at the size of the of the of the human next to the machine and then you look at the size of the humans or size of the machine next to the humans today i mean it's a bit strange over 40 years time you know we've increased the size of the machines while we reduced the size of the semiconductor

Speaker Change: And we started 1984, we had a system of P. S system, Michigan see just look at the size of the.

Speaker Change: Of the of the human next to the machine and then you look at the size of the humans or size of the machine actually humans today I mean, it's a bit strange over 40 Years' time, Yeah. We've increased the size of their machines, while we reduced the size of the semiconductors. So the smaller the fee.

Speaker Change: It's going to be a workhorse for the second half of the decade and well into the next decade. And to make sure that we can actually execute on that promise of artificial intelligence, but also the promise of solving some of these big societal problems with the help of semiconductors. And, you know, it's something I would like to share with you. On April 1st this year, we celebrate our 40th anniversary.

Roger J.M. Dassen: So the smaller the feature size, the bigger the machine. That's what you see as clear evidence.

Speaker Change: The size of the bigger the machine that's what you see is a clear evidence.

Roger J.M. Dassen: But also, we've always been able to provide the market with what they need.

Speaker Change: But also we've always been able to provide the market with what they need.

Roger J.M. Dassen: and we will keep doing that also going forward and the high nature was just the next step in that evolution.

Speaker Change: And we will keep doing that also going forward and at the high net who was just the next step in that evolution and we're very proud to do that now very quickly.

Peter Wennink: We're very proud to do that. Now, very quickly, is that a new machine? This is for people who love technology. You know, we enable 1.7 times smaller features, yeah. So which means almost a 3 times increase in transistor density on the chips. How do we do that? We have a new lens. We have new stages that work so much faster, 2 to 4 times faster. We have repositioned the EUV source so that we have better imaging. We have more transmission. We have more light on the wafer. New frames, improved metrology.

Roger J.M. Dassen: We're very proud to do that. Now, very quickly, is that a new machine?

Speaker Change: And we started in 1984 with a system, a PIS system, as you can see, just look at the size of the human next to the machine. And then you look at the size of the humans or the size of the machines next to the humans today. I mean, it's a bit strange.

Speaker Change: Is that a new machine.

Roger J.M. Dassen: This is for...

Speaker Change: It is for.

Roger J.M. Dassen: People who love technology, we enable 1.7 times smaller features, which means almost a three times increase in transistor density on the chips. And how do we do that? We have a new lens.

People Love Technology, and now we are enable.

Speaker Change: That's what you see as clear evidence. But also, we've always been able to provide the market with what they need, and we will keep doing that also going forward, and the high nature was just the next step in that evolution. We're very proud to do that. Now, very quickly, is that a new machine? This is for... People who love technology. We enable 1.7 times smaller features, which means almost a three times increase in transistor density on the chips. And how do we do that?

Speaker Change: One seven times smaller features yeah, so which means almost a three times increase in transistor density.

The chips and how do we do that we have a new lens, we have new stages that work so much faster three to four two to four times faster we have repositioned the UV source so that we have.

Speaker Change: Over 40 years, you know, we've increased the size of the machines while we reduced the size of the semiconductor. So the smaller the feature size, the bigger the machine. That's what you see as clear evidence.

Roger J.M. Dassen: We have new stages that work so much faster, two to four times faster. We have repositioned the EUV source so that we have better imaging, we have more transmission, we have more light on the wafer, new frames, improved metrology. It's a continuous battle for the next level of innovation. And we need for the next level of innovation the help of our customers, the help of our people, the help of our suppliers, the help of our shareholders. And the help of the community that should enable us to create an environment where we can be super safe.

Speaker Change: But also, we've always been able to provide the market with what they need, and we will keep doing that going forward, and the HiNet tool is just the next step in that evolution. We're very proud to do that. Now, very quickly, is that a new machine? – – – – People who love technology, we enable 1.7 times smaller features, which means almost a three times increase in transistor density on the chips. And how do we do that?

Speaker Change: Better imaging, we have more transmission with more light on the wafer new frames improved metrology, it's a continuous battle for the next level of innovation and we need for next level of innovation to help our customers with the help of our people to help all of our suppliers tell before shareholders and help of the.

Peter Wennink: It's a continuous battle for the next level of innovation, and we need the help of our customers, with the help of our people, the help of our suppliers, the help of our shareholders, and help of the community. That should enable us to create an environment where we can be super successful. With that, I have 10 seconds left, so it's up to you, Roger. Thank you.

Speaker Change: We have a new lens. We have new stages that work so much faster, two to four times faster. We have repositioned the EUV source so that we have better imaging, we have more transmission, we have more light on the wafer, new frames, and improved metrology. It's a continuous battle for the next level of innovation. And we need the help of our customers, the help of our people, the help of our suppliers, the help of our shareholders, and the help of the community. That should enable us to create an environment where we can be super safe, and with that, I have 10 seconds left, so it's up to you, Roger. Thank you.

Speaker Change: Community that should enable us to create an environment, where we can be super successful.

Roger J.M. Dassen: and with that

Speaker Change: And with that.

Speaker Change: I have 10 seconds left, so it's up to you, Roger. Thank you.

Speaker Change: I have 10 seconds left so it's up to you Roger.

Speaker Change: Yeah.

Roger Dassen: Thank you, Peter. I have the clicker.

Speaker Change: We have a new lens. We have new stages that work so much faster, two to four times faster. We have repositioned the EUV source so that we have better imaging.

Roger: Thank you Peter thank.

Roger J.M. Dassen: Thank you, Peter. Thank you, Peter. Good morning, everyone. And I will use those 10 seconds wisely, obviously. Right. So let me let me take you through.

Peter Wennink: You have it.

Roger Dassen: Thank you, Peter. Good morning, everyone, and I will use those 10 seconds wisely, obviously, right? Let me take you through the financial accomplishments and also the outlook that we have on the financial side against the backdrop of all the developments that Peter just described. This is the quarter. Well, there's a lot we can say about the quarter. We ended a little bit better than we guided. We always give a guidance with a certain bandwidth, and we were able to arrive a little bit better than the higher level of the bandwidth. That's always good. Primarily driven by the fact that actually the installed base business was better than we anticipated.

Roger: Thank you Peter good morning, everyone and I will use those 10 seconds wisely, obviously right. So let me yeah, let me take you through.

Roger J.M. Dassen: The financial accomplishments and also the outlook that we have on the financial side against the backdrop of all the developments that Peter just described.

Roger: The financial accomplishments and also the outlook that we have on the financial side against the backdrop of all the developments that are that Peter just said that Peter just said just described.

Speaker Change: We have more transmission. We have more light on the way for new frames, and improved metrology. It's a continuous battle for the next level of innovation, and we need the help of our customers, the help of our people, the help of our suppliers, the help of our shareholders. And with the help of the community, that should enable us to create an environment where we can be super. And with that... I have 10 seconds left, so it's up to you, Roger.

Roger J.M. Dassen: So, this is the quarter. The quarter, well, there's a lot we can say about the quarter. We ended a little bit better than we guided, so we always give a guidance with a certain bandwidth, and we were able to arrive a little bit better than the higher level of the bandwidth, so that's always good. Primarily driven by the fact that actually the installed base business was better than we anticipated. You see it here at 1.6. We expected around 1.3, so that was a major driver why the quarter came in better than we anticipated. Also, it boosted the gross margin, gross margin also a little bit better than we guided, so, you know, all good. But I have to say, the one number that everyone was talking about this morning when we had our initial conversations with the analysts was nothing of the first ones. It was the one at the bottom, which is the net bookings. So, the fact that we were able to report net bookings, so new orders coming in for the quarter at 9.2 billion, which really is a record number.

Speaker Change: Thank you, Peter.

Roger: So this is the quarter the quarter well, there's a lot we can say about the quarter and we ended a little bit better than we guided so we all we always give a guidance with a certain bandwidth then we were able to arrive at a little bit better than the than the than the higher at level of the bandwidth. So that's always good primarily driven by the fact that actually the installed base business.

Speaker Change: Thank you, Peter.

Speaker Change: Good morning, everyone.

Speaker Change: And I will use those 10 seconds wisely, obviously. Right? So let me take you through the financial accomplishments and also the outlook that we have on the financial side against the backdrop of all the developments that Peter just described. So, this is the quarter. The quarter, well, there's a lot we can say about the quarter. We ended a little bit better than we guided, so we always give guidance with a certain bandwidth, and we were able to arrive at a little bit better than the higher level of that bandwidth, so that's always good, primarily driven by the fact that the installed base business was better than we anticipated. You see it here at 1.6. We expected around 1.3, so that was a major driver why the quarter came in better than we anticipated.

Roger: It was better than we anticipate it you see it here at 1.6, we expected around 1.3, so that was a major driver why did the quarter. It came in better than we than we anticipated also boosted the gross margin gross margin also a little bit better than we guided so all good but I have to say the one number that everyone was talking.

Roger Dassen: You see it here at EUR 1.6. We expected around EUR 1.3, so that was a major driver why the quarter came in better than we anticipated. Also, it boosted the gross margin. Gross margin also a little bit better than we guided. You know, all good. I have to say, the one number that everyone was talking about this morning when we had our initial conversations with the analysts was not one of the first ones. It was the one at the bottom, which is the net bookings. The fact that we were able to report net bookings, so new orders coming in for the quarter at EUR 9.2 billion, which really is a record number. That was the one that really attracted the attention.

Roger: Thank you. Thank you, Peter. Thank you, Peter. Good morning, everyone.

Roger: And I will use those 10 seconds wisely, obviously. Right. So let me take you through it.

Roger: The financial accomplishments and also the outlook that we have on the financial side against the backdrop of all the developments that Peter just described. So, this is the quarter. The quarter, well, there's a lot we can say about the quarter.

Roger: About this morning, when we had our initial conversations with the analysts what nothing was nothing of the first ones. It was the one at the bottom which is the net bookings. So the fact that we were able to them to report net bookings so new orders coming in for the quarter at $9 2 billion, which really is a record number and.

Roger: We ended a little bit better than we guided, so we always give guidance with a certain bandwidth, and we were able to arrive at a little bit better than the higher level of that bandwidth, so that's always good, primarily driven by the fact that the installed base business was better than we anticipated. You see it here at 1.6; we expected around 1.3, so that was a major driver why the quarter came in better than we anticipated. Also, it boosted the gross margin a little bit better than we guided, so all good. But I have to say, the one number that everyone was talking about this morning when we had our initial conversations with the analysts was not one of the first ones. It was the one at the bottom, which is net bookings.

Speaker Change: Also, it boosted the gross margin, which was also a little bit better than we guided, so, you know, all good.

Roger J.M. Dassen: that was the one that really attracted the attention and that's you know in combination with some of the more positive color on context that also came for instance from the the earnings release from from t's and c last last week

Roger: That was the one that it really attracted the attention.

Speaker Change: But I have to say, the one number that everyone was talking about this morning when we had our initial conversations with the analysts was none of the first ones.

Roger Dassen: That's, you know, in combination with some of the more positive color and context that also came, for instance, from the earnings release from TSMC last week. I think it does make people realize that, you know, indeed, the whole industry is working its way through the cycle and, you know, these are positive first signs. That's really, I think, also the way this was appreciated also earlier today by the analysts. If we look at the full year, in fact, what you see is that the company grew 30%. Just reflected a little bit on that, as we just said, you know, the industry was actually going through a down cycle.

Roger: And that's you know in combination with some of the more positive color on context that also came for instance from the earnings release from there from the Ts and CS last that last week.

Speaker Change: It was the one at the bottom, which was the net bookings.

Roger J.M. Dassen: I think it does make people realize that you know indeed we are where the whole industry is working its way through the cycle and you know these are positive first signs and that's really I think also the way this was appreciated also earlier today by the analysts.

Speaker Change: So, the fact that we were able to report net bookings, so new orders coming in for the quarter at 9.2 billion, which really is a record number, that was the one that really attracted the attention and that's you know in combination with some of the more positive color on context that also came for instance from the the earnings release from from t's and c last last week, I think it does make people realize that you know indeed we are where the whole industry is working its way through the cycle and you know these are positive first signs and that's really I think also the way this was appreciated also earlier today by the analysts. If we look at the full year, in fact, what you see is that the company grew 30% and just reflected a little bit on that, as we just said, you know, the industry is actually, was actually going through a down cycle.

Roger: I think it does make people realize that you know indeed, we are where the whole industry is a is working its way through the through the cycle and you know these are positive first of first signs and that's really I think also the way. This was appreciate it also earlier today by the by the analysts.

Roger J.M. Dassen: If we look at the full year, in fact, what you see is that the company grew 30% and just reflected a little bit on that, as we just said, you know, the industry is actually, was actually going through a down cycle. 2023 was not a great year for the industry. If you look at most of our customers, they would actually report significant year-on-year declines in 2023. So the fact that we were able to grow 30% is actually a pretty good achievement. And I think it also, you know, tells you a significant story about, you know, the significance of what we do in the entire ecosystem. So good achievement, and I think kudos to the entire organization and all the 42,000 people that have been working extremely hard to actually be able to make this happen.

Roger: If we look at the full year in fact, what you see is that the company grew 30% and just reflected a little bit on that as we just said you know the industry is actually was actually going through a down cycle twenty-three was not a great year for the for the industry. If you look at most of our customers. They would actually report significant year on year declines in.

Roger: So, the fact that we were able to report net bookings, so new orders coming in for the quarter at $9.2 billion, which really is a record number, was the one that really attracted attention, and that's, you know, in combination with some of the more positive Coloron contacts that also came, for instance, from the earnings release from TSMC last week. I think it does make people realize that, you know, indeed, the whole industry is working its way through the cycle and, you know, these are positive early signs, and that's really the way this was appreciated also earlier today by the analysts. If we look at the full year, in fact, what you see is that the company grew 30%. And just reflect a little bit on that, as we just said, the industry is actually, was actually going through a down cycle. Twenty-three was not a great year for the industry.

Roger Dassen: 2023 was not a great year for the industry. If you look at most of our customers, they would actually report significant year-on-year declines in 2023. The fact that we were able to grow 30% is actually a pretty good achievement. I think it also, you know, tells you a significant story about, you know, the significance of what we do in the entire ecosystem. Good achievement, and I think kudos to the entire organization and all the 42,000 people that have been working extremely hard to actually be able to make this happen. We grew to a net sales level of EUR 27.6 billion, as you see here.

Roger: And in 2023, so the fact that we were able to to to grow 30% is actually a pretty good achievement and I think it also tells you a significant story about you know the the the significance of what we do in the Indian tire and the entire ecosystem. So good achievement and I think kudos to the entire organization and all of <unk>.

Speaker Change: 2023 was not a great year for the industry. If you look at most of our customers, they would actually report significant year-on-year declines in 2023. So the fact that we were able to grow 30% is actually a pretty good achievement. And I think it also, you know, tells you a significant story about, you know, the significance of what we do in the entire ecosystem. So, this is a good achievement, and I think kudos to the entire organization and all the 42,000 people that have been working extremely hard to actually be able to make this happen. So, we grew to a net sales level of 27.6 billion, as you see here, a good gross margin, which improved from 2020-2022, and also a very solid net income of nearly $8 billion.

Roger: 42000 people who've had been working extremely hard to actually be able to work to make this to make this happen.

Roger J.M. Dassen: So, we grew to a net sales level of 27.6 billion as you see here, a good gross margin which improved from 2020-2022.

Roger: So we grew it to a net sales level of $27 6 billion as they should as you see here a good gross margin, which which improved from the from <unk> from 2000 2022.

Roger Dassen: A good growth margin which improved from 2020, 2022, and also a very solid net income of nearly EUR 8 billion. Growth primarily on the lithography systems, as you see here. EUV grew 30%, and you just saw the first modules of the High-NA leaving our factory and going to Intel. I think that is a major achievement and a major landmark, I think, for ASML to see that happening. On DPV, growth even more, 60%. Very significant part of that also. Immersion, as you see here, 32% of the unit numbers were immersion. That is a pretty significant growth just there.

Roger J.M. Dassen: and also a very solid net income of nearly $8 billion. Growth primarily on the lithography systems as you see here, so EUV grew 30% and you just saw the first modules of the high-in-A leaving our factory and going at Intel, so I think that is a major, major achievement and a major landmark I think for ASML to see that happening. On DPV, growth even more, 60%, a very significant part of that also. Immersion as you see here, 32% of the unit numbers were immersion, so that is a pretty significant growth just there. And also there are some good product innovation with the 1980F immersion system being shipped to customers and also a brand new I-Line system that found its way into customers. So a lot of innovation, not just on EUV. but also a lot of innovation going on on DPV. On the application, this is actually a decline and you might wonder, you know, how is that at all possible? If you grow so strong on the lithography business, how can it be that metrology and inspection is lower? And the answer is very simple. The lead time, so the order lead time on metrology and inspection is very short. So, you know, if customers are going through a downturn, are going through a down cycle and they have to somehow save money, you know, because they have to manage their capex well, they're going to look at the stuff, you know, what is the stuff that I can wait and wait and wait, you know, a couple of months, because I know if I order it, I get it quite rapidly. If you wait and wait and wait with ordering an EUV machine, you're in trouble, right? Because their order lead times could be like one and a half years. But for metrology and inspection, you're talking about weeks or a few months. So there actually customers can afford to wait ordering and receiving the stuff. So that's the reason why. Application business is down.

Roger: And also a very solid net income of nearly eight 8 billion.

Roger: If you look at most of our customers, they would actually report significant year-on-year declines in 2023. So the fact that we were able to grow 30% is actually a pretty good achievement. And I think it also, you know, tells you a significant story about, you know, the significance of what we do in the entire ecosystem.

Roger: Growth primarily on the on the lithography systems as you see here. So EV grew 30% and you just saw the the the first modules of the Heinie, leaving leaving our factory and going at going at Intel. So I think that is a major major achievement and a major landmark I think four for ASML to see that that to see that happen.

Roger: And I think kudos to the entire organization and all the 42,000 people that have been working extremely hard to actually be able to make this happen. So, we grew to a net sales level of $27.6 billion, as you see here, a good growth margin which improved from 2020-2022, and also a very solid net income of nearly $8 billion. Growth primarily on the lithography systems, as you see here, so EUV grew 30%, and you just saw the first modules of the HiNA leaving our factory and going to Intel, so I think that is a major, major achievement and a major landmark, I think for ASML to see that happening. CPV growth even more, 60%, a very significant part of that also. Immersion As you can see here, 32% of the unit numbers were immersion, so that is a pretty significant growth just there.

Roger: <unk>.

Roger: On deep UV.

Roger: Growth, even more 60% very significant part of that also immersion as you see here a 32% of the of the just the unit numbers, where immersion set out as a pretty significant growth. Just just there and also there are some are some good product innovation with the the 1980 F immersion system are being shipped to customers.

Speaker Change: Growth primarily on the lithography systems, as you see here, so EUV grew 30%, and you just saw the first modules of the high-in-A leaving our factory and going to Intel, so I think that is a major, major achievement and a major landmark, I think for ASML, to see that happening. On DPV, growth even more, 60%, a very significant part of that also.

Roger Dassen: Also there are some good product innovation with the TWINSCAN NXT:1980Fi immersion system being shipped to customers and also a brand new i-line system that found its way into customers. A lot of innovation, not just on EUV, but also a lot of innovation going on DUV. On the application business, actually a decline. You might wonder, you know, how is that at all possible if you grow so strong on the lithography business, how can it be that metrology and inspection is lower? The answer is very simple. The lead time, so the order lead time on metrology and inspection is very short.

Roger: And also a brand new online system that found its way into customers. So a lot of innovation not just on an easy but also a lot of innovation going on on the PV.

Speaker Change: Immersion As you can see here, 32% of the unit numbers were immersion, so that is a pretty significant growth just there. And also, there was some good product innovation with the 1980F immersion system being shipped to customers and also a brand new I-Line system that found its way into customers. So a lot of innovation, not just on EUV but also a lot of innovation going on on DPV. On the application, this is actually a decline, and you might wonder, you know, how is that at all possible?

Roger: On the obligation. This is actually a decline and you might wonder how does that at all possible. If he grows so strong on the lithography business how can it be that said that metrology and inspection is lower and the answer is very simple.

Roger: The lead time, so the order lead time on metrology and inspection is very sharp. So if customers are going through a downturn are going through a down cycle and they have to somehow save money.

Roger Dassen: You know, if customers are going through a downturn, are going through a down cycle, and they have to somehow save money, you know, because they have to manage their CapEx well, they're gonna look at the stuff, you know, "What is the stuff that I can wait and wait and wait, you know, a couple of months, because I know if I order it, I get it quite rapidly." If you wait and wait and wait with ordering an EUV machine, you're in trouble, right? Because their order lead times could be like 1.5 years. But for metrology inspection, you're talking about weeks or a few months. So there actually customers can afford to wait ordering and receiving the stuff. That's the reason why application business is down.

Roger: Cause they have to manage their at their capex, well theyre going to look at the stuff you know what is the stuff that I can wait and wait and wait.

Speaker Change: If you grow so strong in the lithography business, how can it be that metrology and inspection are lower? And the answer is very simple. The lead time, so the order lead time on metrology and inspection is very short. So, you know, if customers are going through a downturn, are going through a down cycle, and they have to somehow save money, you know, because they have to manage their capex well, they're going to look at the stuff, you know, what is the stuff that I can wait and wait and wait, you know, a couple of months, because I If you wait and wait and wait for ordering an EUV machine, you're in trouble, right? Because their order lead times could be like one and a half years. But for metrology and inspection, you're talking about weeks or a few months. So customers can actually afford to wait for ordering and receiving the stuff. So that's the reason why the application business is down.

Roger: And also, there is some good product innovation with the 1980F immersion system being shipped to customers and also a brand new iLine system that found its way into customers. So there is a lot of innovation not just on EUV but also a lot of innovation going on in DPV. On the application business, actually, a decline, and you might wonder how is that at all possible if you grow so strong in the lithography business; how can it be that metrology and inspection are lower? And the answer is very simple. The lead time, so the order lead time on metrology and inspection is very short.

Roger: A couple of months, because I know if I order it I get it quite rapidly if you wait and wait and wait with ordering and EV machine you're in trouble right because the because their order lead times could be like one and a half years, but for metrology inspection, you're talking about weeks or or a few months. So they're actually customers can afford to wait ordering and receiving.

Roger: The stuff. So that's the reason why application business is a is down.

Roger Dassen: In spite of that, you know, we continue to innovate there, and you also see there the introduction of our new YieldStar 500 system. Installed Base business a little bit the same, right? If you're running at fairly low utilization levels, as many of our customers were last year, then you don't really need a lot of upgrades. You don't really need a lot of productivity upgrades. As a result of that, there too, you see customers take the foot off the accelerator a little bit and being a bit more frugal and economical with ordering upgrades. That's the reason why Installed Base business this year a little bit down in comparison to last year, of what I would still call a fairly healthy base. Capital return.

Roger J.M. Dassen: In spite of that, you know, we continue to innovate there and you also see there the introduction of our new Yieldstar 500 to 500 system.

Roger: In spite of that you know we continue to innovate there and you also see there the introduction of our new Youll start 500 to 500 system.

Roger: So if customers are going through a downturn, are going through a down cycle, and they have to somehow save money because they have to manage their capex well, they're going to look at the stuff: what is the stuff that I can wait and wait and wait a couple of months because I know if I order it, I get it quite rapidly? If you wait and wait and wait for ordering an EUV machine, you're in trouble because their order lead times could be like one and a half years. But for metrology and inspection, you're talking about weeks or a few months.

Roger J.M. Dassen: Install-based business a little bit the same, right? So if you're running at fairly low utilization levels as many of our customers were last year, then you don't really need a lot of upgrades. You don't really need a lot of productivity upgrades. And as a result of that, there too, you see customers take the foot of the accelerator a little bit and being a bit more frugal and economical with ordering upgrades. So that's the reason why install-based business this year a little bit down in comparison to last year, off what I would still call a fairly healthy base.

Roger: Installed base business, a little bit the same right. So if you're running at fairly low utilization levels as many of our customers were last year and then you don't really need a lot of upgrades you don't really need a lot of productivity upgrades and as a result of that there are two you see customers take the foot off the accelerator, a little bit and being a bit of a bit more.

Speaker Change: In spite of that, you know, we continue to innovate there, and you also see the introduction of our new Yieldstar 500 to 500 system. Install-based business is a little bit the same, right? So if you're running at fairly low utilization levels, as many of our customers were last year, then you don't really need a lot of upgrades. You don't really need a lot of productivity upgrades.

Roger: Frugal and economical with with ordering upgrades. So that's the reason why installed base business this year little bit down in comparison to last year of what I would still call it a fairly healthy base.

Roger: So there, actually, customers can afford to wait to order and receive the stuff. So that's the reason why the application business is down. In spite of that, you know, we continue to innovate there, and you also see there the introduction of our new Yieldstar 500 to 500 system. Installed based business, a little bit the same, right?

Roger J.M. Dassen: Capital return. We returned back to shareholders 3.3 billion. That is actually quite a bit lower than we did in previous years. Particularly share buyback at around a billion cash this year was quite a bit lower than in subsequent years. Main reason, the same. I mean, in a climate that we have right now, or that at least we had in 2023, with customers going through declines in their sales and their margin levels, we're actually helping customers. So we were helping customers by giving them extended payment terms, et cetera, such that they could pay us later and could push the payments out of 2023 into 2024. So as a result of that, we used our cash position, we used our liquidity to really help the ecosystem, first and foremost, our customers, but also the supply chain to make sure that everyone could continue in spite of the fact that the industry as a whole was going down a bit. That's the way we do it. We first. Use the money in the business, you know, where the key stakeholders needed, and then whatever is left that is being distributed to, you know, to our shareholders.

Roger: Capital return, we return back to shareholders. Three 3 billion that is actually quite a bit lower than we did in previous years, particularly share buyback at around 1 billion cash. This year was so quite a bit lower than that in subsequent years.

Roger Dassen: We returned back to shareholders EUR 3.3 billion. That is actually quite a bit lower than we did in previous years. Particularly share buyback at around EUR 1 billion cash this year was quite a bit lower than in subsequent years. Main reason, the same. I mean, in a climate that we have right now, you know, with, or that at least we had in 2023, with customers going through declines in their sales and their margin levels, we're actually helping customers. We were helping customers by giving them extended payment terms, et cetera, such that they could pay us later and could push the payments out of 2023 into 2024.

Speaker Change: And as a result of that, there too, you see customers taking the foot off the accelerator a little bit and being a bit more frugal and economical with ordering upgrades. So that's the reason why install-based business this year was a little bit down in comparison to last year, on what I would still call a fairly healthy base. Capital return. We returned $3.3 billion to shareholders.

Roger: Main reason the same.

Roger: So if you're running at fairly low utilization levels, as many of our customers were last year, then you don't really need a lot of upgrades; you don't really need a lot of productivity upgrades. And as a result of that, there, too, you see customers take the foot off the accelerator a little bit and be a bit more frugal and economical with ordering upgrades. So that's the reason why installed base business this year was a little bit down in comparison to last year, but off what I would still call a fairly healthy base. Capital return, we returned $3.3 billion to shareholders. That is actually quite a bit lower than we did in previous years. Particularly, share buyback at around a billion pounds cash this year was quite a bit lower than in subsequent years. The main reason is the same.

Roger: I mean in a climate that we have right now you know with or that at least we had in 2023 with customers going through we're through with declines in their sales and their and their margin levels. We're actually helping customers. So we were helping customers by giving them extended payment terms et cetera, such that they could pay us payers later in <unk>.

Speaker Change: That is actually quite a bit lower than we did in previous years. Particularly, share buyback at around a billion pounds cash this year was quite a bit lower than in subsequent years. The main reason is the same. I mean, in a climate that we have right now, or that at least we had in 2023, with customers going through declines in their sales and their margin levels, we're actually helping customers. So we were helping customers by giving them extended payment terms, et cetera, such that they could pay us later and could push the payments out of 2023 into 2024. As a result of that, we used our cash position, and we used our liquidity to really help the ecosystem, first and foremost, our customers, but also the supply chain to make sure that everyone could continue in spite of the fact that the industry as a whole was going down a bit

Roger: Bush D could push the payments out of the 20th twenty-three into 'twenty 'twenty four so as a result of that we used our cash position, we used our credit liquidity to really help the ecosystem first and foremost or our customers, but also the supply chain to make sure that everyone could continue in spite of the fact that the industry as a whole was going down a bit.

Roger Dassen: As a result of that, we used our cash position, we used our liquidity to really help the ecosystem, first and foremost our customers, but also the supply chain, to make sure that everyone could continue in spite of the fact that the industry as a whole was going down a bit. That's the way we do it. We first use the money in the business, you know, where the key stakeholders need it, and then whatever is left, that is being distributed to, you know, to our shareholders. Breakdown of systems in the different ways. You see that technology on the technology side, you see the immersion technology being, you know, really very popular this year at 41%, so a big increase in there, but you also see EUV still strong.

Roger: The way we do it we first use the money in the business you know where the key stakeholders. It needed and then whatever is left that is being distributed to them to you know to our shareholders.

Roger: I mean, in a climate that we have right now, you know, or that at least we had in 2023, with customers going through declines in their sales and their margin levels, we're actually helping customers. So we were helping customers by giving them extended payment terms, etc., so that they could pay us later and could push the payments out of 2023 into 2024. So as a result of that, we used our cash position, and we used our liquidity to really help the ecosystem, first and foremost, our customers, but also the supply chain, to make sure that everyone could continue in spite of the fact that the industry as a whole was going down a bit. That's the way we do it. We first use the money in the business, you know, where the key stakeholders need it, and then whatever is left, that is distributed to our shareholders.

Roger: Yeah.

Roger J.M. Dassen: Breakdown of systems in different ways. You see that technology on the technology side, you see the immersion technology being really very popular this year at 41%, so a big increase in there, but you also see UV still strong. So you see the leading technology really being the technology that was in very high demand, and that again is in line with the way I just commented it. These are the leading tools, are the tools where you have the longest lead time, the longest order time, so that's the stuff that customers will continue to order, even if the industry is going through a bit of a down cycle, so very strong on the leading technology. In terms of end use, you see that logic was extremely strong this year, but as Peter said, we do see memory coming back right now, but memory was really going through a very significant down cycle in 2020, 2023.

Roger: Breakdown of our systems and in a different ways you see that technology on the technology side, you see the immersion technology being you know really very popular this year at 41%. So a big increase in there, but youll also see UV still strong. So you see the leading technology really being the technology that was a very high demand and that again is in line with the way I.

Speaker Change: That's the way we do it. We are first. Use the money in the business, you know, where the key stakeholders need it, and then whatever is left that is being distributed to, you know, our shareholders. Breakdown of systems in different ways You see, on the technology side, you see immersion technology being really very popular this year at 41%, so a big increase there, but you also see UV still strong. So you see the leading technology really being the technology that was in very high demand, and that again is in line with the way I just commented on it. These are the leading tools, and these are the tools where you have the longest lead time, the longest order time, so that's the stuff that customers will continue to order, even if the industry is going through a bit of a down cycle, so very strong on the leading technology.

Roger Dassen: You see the leading technology really being the technology that was in very high demand, and that again is in line with the way I just commented it. These are the leading tools, the tools where you have the longest lead time, the longest order time. That's the stuff that customers will continue to order even if the industry is going through a bit of a down cycle. Very strong on the leading technology. In terms of end use, you see that logic was extremely strong this year. As Peter said, we do see memory coming back right now. Memory was really going through a very significant down cycle in 2023.

Roger: Just commented it these are the leading tools are the tools, where you have the longest lead time the longest all the time. So that's the stuff that customers will continue to order even if the industry is going through a bit of a down that down cycle. So very strong under on the leading technology in terms of end use you see that logic was extremely strong. This said this year.

Speaker Change: But as Peter said, we do see memory coming back right right now, but memory was really going through a very significant down cycle in 2000 22023.

Roger: Breakdown of systems and the different ways you see that technology on the technology side you see the immersion Technology being you know really very popular this year at 41% so a big increase in there But you also see UV still strong so you see the leading technology Really being the technology that was a very high demand and that again is in line with the way I just commented it these are the leading tools are the tools where you have the longest lead time the longest order time So that's the stuff that customers will continue to order even if the industry is going through a bit of a down down cycle So very strong on the on the leading technology In terms of end-use you see that logic was extremely strong this this year But as Peter said we do see memory coming back right right now But memory was really going through a very significant down cycle in 2020 2023, and now finally on a regional basis you see the spread there and obviously you also see that China was was quite big in comparison to last year and you know we've talked about this before the orders that said that we that or the shipments that we had into China were primarily executing on on orders that to a very large extent were already there by the end of 2022 so China had you know had already put in quite some orders in previous years but the order fill rate for China was low because we had such demand also outside of China that we could only allocate less than less than 50% around 40% to to China so you know of the orders that they put in we could only deliver somewhere between 40 and 50% of those orders for a couple of years. This year with you know the the slow in demand the slowdown in demand that we had for a few other customers as a result of that we were able to ship more to to China than in previous years and I think that is clearly represented in these in these numbers. I think here you see the same picture.

Roger Dassen: Now finally, on a regional basis, you see the spread there, and obviously you also see that China was quite big in comparison to last year. You know, we've talked about this before. The shipments that we had into China were primarily executing on orders that to a very large extent were already there by the end of 2022. China has, you know, had already put in quite some orders in previous years, but the order fill rate for China was low because we had such demand also outside of China, that we could only allocate less than 50%, around 40% to China.

Roger J.M. Dassen: And now finally, on a regional basis, you see the spread there, and obviously you also see that China was quite big in comparison to last year. And, you know, we've talked about this before, the orders that we, or the shipments that we had into China were primarily executing on orders that, to a very large extent, were already there by the end of 2022. So China had, you know, had already put in quite some orders in previous years, but the order fill rate for China was low. Because we had such demand also outside of China that we could only allocate less than 50%, around 40% to China. So, you know, of the orders that they put in, we could only deliver somewhere between 40% and 50% of those orders for a couple of years. This year, with, you know, the slow in demand, the slowdown in demand that we had for a few other customers, as a result of that, we were able to ship more to China than in previous years. And I think that is clearly represented in these numbers. Thank you.

Speaker Change: And then finally on a regional basis, you'll see the spread there and obviously you also see that China was there was quite big in comparison to last year and you know we've talked about this before and the orders that said that we dealt with all the shipments that we had into China with primarily executing on on orders that to a very.

Speaker Change: In terms of end use, you see that logic was extremely strong this year, but, as Peter said, we do see memory coming back right now, but memory was really going through a very significant down cycle in 2020 and 2023. And now, on a regional basis, you see the spread there, and obviously, you also see that China was quite big in comparison to last year. And, you know, we've talked about this before; the orders that we, or the shipments that we had into China were primarily based on orders that, to a very large extent, were already there by the end of 2022.

Speaker Change: <unk> that were already there by the end of 2022, So China had you know had already put in quite some orders in previous years, but he order fill rate for China was low because we had such demand also outside of China that we could only allocate less than less than 50% of around 40% to two China. So of the orders that they put in.

Roger Dassen: You know, of the orders that they put in, we could only deliver somewhere between 40% and 50% of those orders for a couple of years. This year with, you know, the slowdown in demand that we had for a few other customers as a result of that, we were able to ship more to China than in previous years. I think that is clearly represented in these numbers. I think here you see the same picture. You see that in spite of the memory down cycle, you see that memory is still, you know, quite a bit higher than it was in previous years. You see the formidable strength of the logic business. Interesting.

We could only deliver somewhere between 40 and 50% of those orders for a couple of years.

Speaker Change: So China had already put in quite some orders in previous years, but the order fill rate for China was low because we had such demand outside of China that we could only allocate less than 50%, around 40% to China.

Speaker Change: This year with you know the slow in demand the slowdown in demand that we had for a few other customers as a result of that we were able to ship more to China than in previous years, and I think that as Larry represented in diesel in these numbers.

Roger J.M. Dassen: I think here you see the same picture. You see that in spite of the memory down cycle, you see that memory is still quite a bit higher than it was in previous years, but you see the formidable strength of the logic.

Speaker Change: So, you know, of the orders that they put in, we could only deliver somewhere between 40% and 50% of those orders for a couple of years. This year, with the slowdown in demand, the slowdown in demand that we had for a few other customers, as a result of that, we were able to ship more to China than in previous years. And I think that is clearly represented in these numbers. Thank you. I think you see the same picture here.

Speaker Change: I think here you see the same picture you see that in spite of the memory down cycle you see that memory is still you know quite a bit higher than that than it was in previous years, but you see the formidable strength of the of the logic of the logic business.

Roger Dassen: I will not get you through every single number here, but I just wanna highlight a few of them. It's interesting to know that, actually in three years' time, we doubled our sales, right? If you look at 2020, it took us three years to double the sales from 2020. I think that is a pretty big achievement and a pretty big testament, I think, to the strength that we enjoy within the industry. Also, take a look at R&D. R&D, it took us four years to double the R&D amount, EUR 4 billion. EUR 4 billion euros. That's an interesting data point. EUR 4 billion is the R&D expense that ASML has. As a matter of fact, if you wanna look at spend, you can actually...

Interesting I will not get you through every single number here, but I just want to highlight a few of them. So it's interesting to note that actually in three years' time, we doubled our sales right. So if you look at 2020. It took us three years to double the sales from 2020, something that is a pretty big achievement in a pretty Big Testament.

Speaker Change: Interesting. I will not get you through every single number here, but I just want to highlight a few of them. So it's interesting to know that actually in three years' time, we doubled our sales, right? So if you look at 2020, it took us three years to double the sales from 2020. So I think that is a pretty big achievement and a pretty big testament, I think, to the strength that we enjoy within the industry. Also take a look at R&D. R&D, it took us four years to double the R&D amount. Four billion. Four billion euros.

Speaker Change: You see that in spite of the memory down cycle, memory is still quite a bit higher than it was in previous years, but you see the formidable strength of the logic. Interesting. I will not get you through every single number here, but I just want to highlight a few of them. So it's interesting to know that, actually, in three years' time, we doubled our sales, right?

Speaker Change: I think to the to the to the strengths that we enjoy within the within the industry also take a look at R&D R&D. It took us four years to double the R&D amount 4 billion 4 billion euros. That's an interesting data point 4 billion euros is the R&D expense that ASML has and as a matter of fact, if you want to look at spend you can actually.

Speaker Change: That's an interesting data point. Four billion euros is the R&D expense that ASML has. And as a matter of fact, if you want to look at spend, you should actually add, I would say, at least a billion of capex that we also do on the R&D front. So our total spend on R&D, I think, gets close to five billion. And that is just our spend. In addition to that, of course, there is a lot of spend that happens in our ecosystem. There is a lot of R&D spend that our suppliers do on our behalf. That's, you know, the research institutes that we work with that they do. And then if you look at the total R&D spend for the Netherlands, according to the central agency for statistics in the Netherlands, that's around 20 billion. So you can see that the total contribution of the ecosystem that we operate in to the total share that they have in the R&D spend in the Netherlands is quite significant. And, of course, not all of the spend is in the Netherlands. But the lion lion share. The share of the spend really is. And I think that really tells you, you know, about how strong this ecosystem is and how much it contributes, I think, to our Dutch economy.

Roger: You see that in spite of the memory down cycle, you see that memory is still, you know, quite a bit higher than it was in previous years. But you see the formidable strength of logic. Interesting. I will not get you through every single number here, but I just want to highlight a few of them.

Speaker Change: So if you look at 2020, it took us three years to double our sales from 2020.

Speaker Change: So I think that is a pretty big achievement and a pretty big testament, I think, to the strength that we enjoy within the industry. Also, take a look at R&D. R&D; it took us four years to double the R&D amount. Four billion dollars. Four billion euros. That's an interesting data point. Four billion euros is the R&D expense that ASML has. And as a matter of fact, if you want to look at spend, you should actually add, I would say, at least a billion euros of capex that we also do on the R&D front. So our total spend on R&D, I think, is close to five billion. And that is just our start. In addition to that, of course, there is a lot of spend that happens in our ecosystem. There is a lot of R&D spend that our suppliers do on our behalf.

Roger Dassen: You should actually add, I would say, at least EUR 1 billion of CapEx that we also do on the R&D front. Our total spend on R&D, I think, gets close to EUR 5 billion, and that is just our spend. In addition to that, of course, there is a lot of spend that happens in our ecosystem. There is a lot of R&D spend that, you know, our suppliers do on our behalf. That's, you know, the research institutes that we work with, that they do. If you look at the total R&D spend for the Netherlands, according to the central agency for statistics in the Netherlands, that's around EUR 20 billion.

Speaker Change: <unk> you should actually add I would say at least 1 billion of Capex that we also do on the R&D front. So our total spend on R&D I think gets close to $5 billion and that is just our spent in addition to that of course, there is a lot of spend that happens in our ecosystem. There is a lot of R&D spend that our suppliers are due on our behalf.

Roger: So it's interesting to know that actually, in three years' time, we doubled our sales, right? So if you look at 2020, it took us three years to double our sales from 2020. So I think that is a pretty big achievement and a pretty big testament, I think, to the strength that we enjoy within the industry. Also, take a look at R&D. R&D; it took us four years to double the R&D amount. Four billion dollars.

Speaker Change: That's in all the research Institute that we work with that they do and then if you look at the total R&D spend for the Netherlands. According to the Central agency for statistics in the Netherlands, that's around $20 billion. So you can see that the total contribution of the of the ecosystem that we're that we operate in to the total shared that.

Roger Dassen: You can see that the total contribution of the ecosystem that we operate in to the total share that they have in the R&D spend in Netherlands is quite significant. Of course, not all of the spend is in the Netherlands, but the lion share of the spend really is. I think that really tells you know, about how strong this ecosystem is and how much it contributes, I think, to our Dutch economy. You see that the growth that we experience also, you know, works its way into net income, a very strong net income, as I mentioned, nearly EUR 8 billion, and obviously also into earnings per share and what have you.

Roger: Four billion euros. That's an interesting data point. Four billion euros is the R&D expense that ASML has. And as a matter of fact, if you want to look at spend, you can actually, you should actually add, I would say, at least a billion euros of capex that we also do on the R&D front. So our total spend on R&D, I think, is close to five billion. And that is just our start. In addition to that, of course, there is a lot of spend that happens in our ecosystem. There is a lot of R&D spend that, you know, our suppliers do on our behalf. That's, you know, the research institutes that we work with do that.

Speaker Change: They have in the yen and the <unk>.

Speaker Change: And the R&D spend in the Netherlands is quite significant and of course, not all of the standards in the Netherlands, but the lion lion's share of the spent really is and I think that really tells you you know about how strong this ecosystem is and how much it contributes I think to the two hour or a Dutch our Dutch economy.

Speaker Change: That's, you know, the research institutes that we work with that they do. And then if you look at the total R&D spend for the Netherlands, according to the central agency for statistics in the Netherlands, that's around 20 billion euros.

Speaker Change: So you can see that the total contribution of the ecosystem that we operate in to the total share that they have in the R&D spend in the Netherlands is quite significant.

Speaker Change: And then you see that the growth that we experienced also works its way into net income a very strong net income as I mentioned, nearly 8 billion and obviously also into earnings per share and what have you.

Speaker Change: And then you see that the growth that we experience also, you know, works its way into net income, a very strong net income, as I mentioned, nearly 8 billion, and obviously also into earnings per share and what have you.

Speaker Change: And, of course, not all of the spend is in the Netherlands. But the lion's share. The share of the spend really is.

Roger: And then if you look at the total R&D spend for the Netherlands, according to the central agency for statistics in the Netherlands, that's around 20 billion euros. So you can see that the total contribution of the ecosystem that we operate in to the total share that they have in the R&D spend in the Netherlands is quite significant. And of course, not all of the spend is in the Netherlands, but the lion's share of the spend really is.

Roger Dassen: In terms of return to shareholders, as I mentioned, in the aggregate, the return to shareholders in 2023 was a bit lower than it was in 2022. On the dividend side, we continue to grow dividends, and that is our policy. We try to have a dividend that grows over year, over the years. The dividend that pertains to 2023, we propose to the AGM dividend of EUR 6.10, and that is a 5.2% increase over the dividend over 2022. I think that's healthy growth.

Speaker Change: In terms of return to shareholders, as I mentioned, in the aggregate, the return to shareholders in 2023 was a bit lower than it was in 2022. On the dividend side, we continue to grow dividends, and that is our policy. We try to have a dividend that grows over the years. So the dividend that pertains to 2023, we propose to the AGM a dividend of 6.10, and that is a 5.2% increase over the dividend over 2022. So I think that's healthy growth. But as you can also see, and as I mentioned, the share buyback was quite a bit lower than it was in previous years because we decided to help our customers and the rest of the ecosystem and put our money there rather than distributing it back to shareholders in 2023. So I think that's healthy growth.

Speaker Change: And I think that really tells you, you know, about how strong this ecosystem is and how much it contributes, I think, to our Dutch economy.

Speaker Change: In terms of return to shareholders as I mentioned in the aggregate the return to shareholders in the 23 was a bit lower than it was in 2022.

Speaker Change: The dividend side, we continue to grow dividends and that is our policy. We try to have a dividend that grows over year over the years. So the.

Speaker Change: And then you see that the growth that we experienced also, you know, works its way into net income, a very strong net income, as I mentioned, nearly 8 billion, and obviously also into earnings per share and what have you. In terms of return to shareholders, as I mentioned, in the aggregate, the return to shareholders in 2023 was a bit lower than it was in 2022. On the dividend side, we continue to grow dividends, and that is our policy. We try to have a dividend that grows over the years. So the dividend that relates to 2023, we propose to the AGM a dividend of 6.10, and that is a 5.2% increase over the dividend for 2022. So I think that's healthy growth.

Speaker Change: The dividend that pertains to the 2023 we proposed to the year to the AGM a dividend of 6.6 dollars 10 and that is a five 2% increase over the dividend over 2022. So I think that's that's healthy growth does it can also see and as I mentioned to the share buyback was quite a bit lower than it was in previous years.

Roger: And I think that really tells you, you know, about how strong this ecosystem is and how much it contributes, I think, to our Dutch economy. And then you see that the growth that we experience also works its way into a net income, a very strong net income, as I mentioned, nearly 8 billion euros, and obviously also into earnings per share and what have you. In terms of return to shareholders, as I mentioned, in the aggregate, the return to shareholders in 2023 was a bit lower than it was in 2022. On the dividend side, we continue to grow dividends, and that is our policy. We try to have a dividend that grows over the years. So the dividend that relates to 2023, we propose to the AGM a dividend of 6.10, and that is a 5.2% increase over the dividend for 2022. So I think that's good growth.

Roger Dassen: As you can also see, and as I mentioned to you, share buyback was quite a bit lower than it was in previous years because we decided to help our customers and the rest of the ecosystem and put our money there rather than distributing it back to shareholders in 2023. In terms of outlook for the quarter, it's a soft start to the year, but quite frankly, that was a bit anticipated because, you know, based on all the demand timing with the fab openings, et cetera, we clearly see that 2024 will be much more skewed towards the H2 than it is towards the H1.

Speaker Change: Because we decided to help our customers and the rest of the ecosystem and put our money there rather than distributing it back to shareholders in 2023.

Speaker Change: In terms of outlook, outlook for the quarter, it's a soft start to the year, but quite frankly that was a bit anticipated because, you know, based on all the demand timing with the fab openings, etc., we clearly see that 2024 will be much more skewed towards the second half than it is towards the first half. So a relatively slow start with net sales expected to be between $5 and $5.5 billion, and you see all the rest here in terms of the implications for gross margin, R&D, etc. Gross margin is quite a bit lower than what you saw. This is primarily because of product mix. We expect the first quarter to be fairly light on immersion, fairly light on the install-based business, and those are typically, you know, the big contributors to gross margin. So that's the reason why gross margin in the first quarter is expected to be a bit lower than in the rest of the year.

Speaker Change: In terms of outlook and outlook for the quarter, it's a soft start to the year, but quite frankly that was a bit of dissipated because you know based on all the demand timing with the fab openings et cetera, we clearly see the 'twenty 'twenty four will be much more skewed towards the second half than it is towards the first half so.

Speaker Change: But as you can also see, and as I mentioned, the share buyback was quite a bit lower than it was in previous years because we decided to help our customers and the rest of the ecosystem and put our money there rather than distributing it back to shareholders in 2023. So I think that's healthy growth. In terms of outlook, outlook for the quarter, it's a soft start to the year, but quite frankly, that was a bit anticipated because, you know, based on all the demand timing with the fab openings, etc., we clearly see that 2024 will be much more skewed towards the second half than it is towards the first half. So a relatively slow start with net sales expected to be between $5 and $5.5 billion, and you Gross margin is quite a bit lower than what you see.

Roger Dassen: A relatively slow start with net sales expected to be between EUR 5 and 5.5 billion, and you see all the rest here in terms of the implications for gross margin, R&D, etc. Gross margin is quite a bit lower than what you saw. This is primarily because of product mix. We expect Q1 to be fairly light on immersion, fairly light on the installed base business, and those are typically, you know, the big contributors to gross margin. That's the reason why gross margin this Q1 is expected to be a bit lower than in the rest of the year. In terms of 2024, I think Peter said it. We really look at 2024 as a transition year.

Speaker Change: It's relatively slow slow start with net sales expected to be between five and $5 5 billion and you see all the rest here in terms of the implications for gross margin R&D etcetera gross margin is quite a bit lower than what you saw this is primarily because of product mix. We expect the first quarter to be fairly light on immersion.

Roger: But as you can also see, and as I mentioned, the share buyback was quite a bit lower than it was in previous years because we decided to help our customers and the rest of the ecosystem and put our money there rather than distributing it back to shareholders in 2023. In terms of outlook, outlook for the quarter, it's a soft start to the year, but quite frankly, that was a bit anticipated because, you know, based on all the demand timing with the fab openings, etc., we clearly see that 2024 will be much more skewed towards the second half than it is towards the first half. So, a relatively slow start with net sales expected to be between five and five and a half billion, and you see all the rest here in terms of the implications for gross margin, R&D, etc. Gross margin is quite a bit lower than what you see. This is primarily because of the product mix.

Speaker Change: Fairly light on the installed base business and those are typically the big contributors to gross margin. So that's the reason why gross margin. The first quarter is expected to be a bit lower than than in the rest of the year and the rest of the year.

Speaker Change: In terms of 'twenty 'twenty four I think Peter said, it and we really look at 'twenty four as a transition year, we articulated the expectation that we think 'twenty four from a revenue perspective will be similar to 2023, but it's still going to be a big year for us in terms of preparing for 25 for all the good reasons that Peter mentioned, we think 25 is going to be a big year of <unk>.

Speaker Change: In terms of 2024, I think Peter said it, we really look at 2024 as a transition year, we articulated the expectation that we think 2024 from a revenue perspective will be similar to 2023, but it's still going to be a big year for us in terms of preparing for 2025, for all the good reasons that Peter mentioned, we think 2025 is going to be a big year of growth, why is that? Well, first off, because the secular trends are very clearly intact, right, with, you know, without high-end logic, there's no AI, without high-end memory, there's no AI, without ASML, there is no high-end logic or high-end memory, so it's very, very clear that, you know, the AI development will have a very significant contribution to our business in 2025, so that's a big one, the secular trends are very much intact, secondly, you know, you saw the FAB opening, that Peter was sharing with you, so that's a big driver, and we do believe in 2025 that we're, you know, nicely underway in the upcycle within the industry, so that's the way we look at 2025, we have to prepare for that, we have to be ready for that, so we're expanding capacity, we're very much investing into the high-end technology, both here in the factory and also in the field to make sure that the entire organization is ready to deliver on that, and that is a, you know, big commitment that we're making towards expanding capacity. Thank you.

Speaker Change: This is primarily because of product mix. We expect the first quarter to be fairly light on immersion, and fairly light on the install-based business, and those are typically, you know, the big contributors to gross margin. So that's the reason why gross margin in the first quarter is expected to be a bit lower than in the rest of the year.

Roger Dassen: We articulated the expectation that we think 2024 from a revenue perspective will be similar to 2023, but still gonna be a big year for us in terms of preparing for 2025. For all the good reasons that Peter mentioned, we think 2025 is gonna be a big year of growth. Why is that? Well, first off, because the secular trends are very clearly intact, right? You know, without a high-end logic, there's no AI. Without high-end memory, there's no AI. Without ASML, there is no high-end logic or high-end memory. So it's very clear that, you know, the AI development will have a very significant contribution to our business in 2025. So that's a big one. The secular trends are very much intact.

Growth why is that well first off because the secular trends are very clearly intact right with you know without.

Speaker Change: High end logic Theres no AI without high end memory does no AI without ASML. There is no high end logic or high end memory. So it's very very clear that you know the the AI development, we'll have a very significant contribution to our to our business are in 2025. So that's a big one the secular trends are.

Roger: We expect the first quarter to be fairly light on immersion, and fairly light on the installed base business, and those are typically, you know, the big contributors to gross margin. So that's the reason why gross margin in the first quarter is expected to be a bit lower than in the rest of the year. In terms of 2024, I think Peter said it, we really look at 2024 as a transition year. We articulated the expectation that we think 2024, from a revenue perspective, will be similar to 2023.

Speaker Change: Much intact.

Roger Dassen: Secondly, you know, you saw the fab openings that Peter was sharing with you, so that's a big driver. We do believe in 25 that we're, you know, nicely underway in the upcycle within the industry. That's the way we look at 2025. We have to prepare for that. We have to be ready for that. We're expanding capacity. We're very much investing into the High-NA technology, both here in the factory and also in the field, to make sure that the entire organization is ready to deliver on that. That is a, you know, big commitment that we're making towards expansion of capacity within the industry. That said, how do we look at 2024 then? As I mentioned at the top line, similar.

Speaker Change: Lee you know you saw the fab openings that Peter was sharing with you said that that's a big driver and we do believe and twenty-five that were you know nicely underway and the year in the up cycle within the within the industry. So that's the way we look at 'twenty 'twenty five we have to prepare for that we have to be ready for that so we're expanding capacity with very much investing into the high <unk>.

Roger: But it's still going to be a big year for us in terms of preparing for 2025. For all the good reasons that Peter mentioned, we think 2025 is going to be a big year of growth. Why is that?

Peter: Well, first off, because the secular trends are very clearly intact, right? Without high-end logic, there's no AI. Without high-end memory, there's no AI. Without ASML, there is no high-end logic or high-end memory.

Speaker Change: Hologic both here in the factory and also in the in the field to make sure that the entire organization is ready to deliver on that and that is a big commitment that we're making towards expansion of capacity within the industry.

Peter: So it's very, very clear that AI development will have a very significant contribution to our business in 2025. So that's a big one. The secular trends are very much intact.

Speaker Change: That says, how do we look at 2024 then? So as I mentioned at the top line, similar. If you look at the moving parts, if you look at the end markets, we believe we will see growth on the memory side. Peter said it with DDR5 and with high bandwidth memory, we clearly see that technology investments of the memory players are significant. You also saw in the order intake that about 50% of the order intake was related to memory. That is very, very high and that just tells you that indeed these investments in the technology transitions are being made by our customers and we think that should be visible in our business this year. Logic, we think, will decline a little bit in comparison to last year because already so much CapEx has been added to and capacity has been added to Logic. So we think, you know, our customers will push. They will probably absorb that addition in 2023 before they're really going to massively invest again. So that's why we think memory will be up this year and we think Logic will be a little bit down.

Speaker Change: That said, how do we look at 'twenty 'twenty for them. So as I mentioned at the top line similar if you look at the moving parts. If you look at the end markets. We believe it will be we will see growth on the on the memory side, you know Peter said it with their DDR, five and with our with high bandwidth memory.

Roger Dassen: If you look at the moving parts, if you look at the end markets, we believe we will see growth on the memory side. You know, Peter said it with DDR5, and with high bandwidth memory. You know, we clearly see that technology investments of the memory players are significant. You also saw in the order intake that about 50% of the order intake was related to memory. That is very, very high, and that just tells you that indeed these investments in the technology transitions are being made by our customers, and we think that should be visible in our business this year.

Peter: Secondly, you saw the fab openings that Peter was sharing with you. So that's a big driver. And we do believe in 2025 that we're nicely underway in the upcycle within the industry. So that's the way we look at 2025. We have to prepare for that. We have to be ready for that.

Speaker Change: We clearly see that technology investments of the memory players are significant you also saw in the order intake that about 50% of the order intake was related to memory that is very very high and that just tells you that indeed these investments in the technology transitions are being made by our customers and we think that should be visible in the.

Speaker Change: Thank you. That said, how do we look at 2024 then? So, as I mentioned in the top line, similar. If you look at the moving parts, if you look at the end markets, we believe we will see growth on the memory side. Peter said: "With DDR5 and with high bandwidth memory, we clearly see that the technology investments of the memory players are significant. You also saw in the order intake that about 50% of the order intake was related to memory." That is very, very high and that just tells you that indeed these investments in the technology transitions are being made by our customers, and we think that should be visible in our business this year. Logic, we think, will decline a little bit in comparison to last year because already so much CapEx has been added to, and capacity has been added to Logic. So we think, you know, our customers will push. They will probably absorb that addition in 2023 before they're really going to massively invest again. So that's why we think memory will be up this year, and we think logic will be a little bit down.

Peter: So we're expanding capacity. We're very much investing in high-end technology, both here in the factory and also in the field, to make sure that the entire organization is ready to deliver on that. And that is a big commitment that we're making towards expanding capacity within the industry. So, how do we look at 2024 then? So, as I mentioned at the top line, similar.

Speaker Change: In our business suggests that this year logic, what we think will decline a little bit in comparison to last year because already so much capex has been added to and capacity has been added to logic. So we think you know our customers will probably absorbed at that addition in 2023 before they're really going to massively invest against that.

Roger Dassen: Logic, we think will decline a little bit in comparison to last year because already so much CapEx has been added to, and capacity has been added to logic. We think, you know, our customers will probably absorb that addition in 2023 before they're really going to massively invest again. That's why we think memory will be up this year, and we think logic will be a little bit down. In terms of the way it is being distributed over the year, as I mentioned, we think H2 will be stronger. There we think, you know, momentum will continue to be built H2, and then really going into what we think will be a very, very strong 2025.

Peter: If you look at the moving parts, if you look at the end markets, we believe that we will see growth on the memory side. You know, Peter said it with DDR5 and with high bandwidth memory. We clearly see that the technology investments of the memory players are significant. You also saw in the order intake that about 50% of the order intake was related to memory. That is very, very high, and that just tells you that indeed these investments and the technology transitions are being made by our customers, and we think that should be visible in our business this year. Logic, we think, will decline a little bit in comparison to last year because already so much capex has been added to and capacity has been added to Logic.

Speaker Change: Why we think memory will be up this year, and we think logic will it be a little bit a little bit down.

Speaker Change: In terms of in terms of the way it is being distributed over the year as I mentioned, we think the second half will be it will be it will be stronger and there. We think you know momentum will continue to be built second half and then really going into what we think will be a very very strong 2025.

Roger Dassen: Dear friends, that is it from my end. With that, I think we're going to Q&A.

Speaker Change: Dear friends, that is it from my end. So with that, I think we're going to Q&A. Yeah, thank you, Michel. I think your place is in the middle. I got instructions. Thank you.

Speaker Change: Their friends that is it from my from my end, so with that I think we're going to do Q&A. Yeah. Thank you Ms. Shang I think Youll places in the Middle I got instructions. Thank you.

Monique Mols: Yeah. Thank you, Roger. I think your place is in the middle. I got instructions. Thank you.

Roger Dassen: Politely follow instructions.

Speaker Change: Thank you very much for your time and I look forward to seeing you again in the future.

Speaker Change: In terms of the way it is being distributed over the year, as I mentioned, we think the second half will be stronger, and there we think momentum will continue to be built in the second half, and then really going into what we think will be a very, very strong 2025. Dear friends, that is it from my end. So with that, I think we're going to have a Q&A. Yeah, thank you, Michel. I think your place is in the middle. I have instructions. Thank you. Thank you very much for your time, and I look forward to seeing you again in the future.

Speaker Change: Politely follow instructions.

Peter: So, we think, you know, our customers will probably absorb that addition in 2023 before they're really going to massively invest again. So, that's why we think memory will be up this year, and we think Logic will be a little bit down. In terms of the way it is being distributed over the year, as I mentioned, we think the second half will be stronger, and we think momentum will continue to be built in the second half, and then really going into what we think will be a very, very strong 2025. Dear friends, that is it from my end. So with that, I think we're going to have a Q&A. Yeah, thank you, Michel. I think your place is in the middle. I have instructions.

Monique Mols: Yeah. You all think this is spontaneous and easy.

Speaker Change: Yeah, you're all saying this is a spontaneous N E.

Roger Dassen: Oh, worst day.

Monique Mols: Hey, I'm getting instructions here. This is my place. I'm sure there are questions in the room. Let's start there because, you know, you're here. I have my colleague Mark here with a microphone. For those online, I've got a colleague, Kelsey. She is taking your questions, and she'll send them through to my. Oh, Ting Fang's already there. Yes, hang on there, Ting Fang. We'll get to you. She's sending out further questions to my iPad. Mark.

Speaker Change: I'm getting instructions here, where this is my place. So I'm sure. There are questions in the room, let's start there because you know you're here I have my colleague Mark here to them with a microphone for those online I've got a colleague Kelsey and he is taking your questions and she'll send them through to my.

Speaker Change: Oh, Ting Fang's already there. Yes, hang on there, Ting Fang, we'll get to you. So she's sending out further questions to my iPad. So, Mark.

Speaker Change: I would think funds already there, yes hang on there to fund we will get when we get to you.

Speaker Change: So she's sending them further questions to my an iPad so mark.

Mark: Introduce yourself.

Mark Vermaij: Introduce yourself.

Speaker Change: Yes.

Sandra Olsthoorn: Sandra Olsthoorn, Het Financieele Dagblad. I have two questions. One is on the gap between the orders and your outlook. I'm wondering how much has to do with the market and how much is ASML, as you're saying, preparing for the big upturn, but maybe you're taking it easy on the execution or taking your foot off the gas to prepare yourself, if you know what I mean. The second question is about the China orders. It says in the press release that the export controls do you think are going to cost 10% to 15% of the Chinese revenue. I was wondering in the past, ASML always communicated that revenue that is being made in not made in China will always go somewhere else.

Speaker Change: And somehow all stern finish L I.

Speaker Change: Sandra Ohlstorn, Financiële Dagblad. I have two questions. The one is on the gap between the orders and your outlook. I'm wondering how much has to do with the market and how much is ASML, as you're saying, preparing for the big upturn, but maybe you're...

I have two questions and one is on <unk> and the gap between the orders and your outlook I'm wondering how much has to do with the market and how much is ASML as youre, saying preparing for the big upturn, but navy yard.

Speaker Change: Thank you. Politely follow the instructions. Yeah. You all think this is spontaneous and easy, but hey, I'm getting instructions here.

Speaker Change: Oh, Ting Fang's already there. Yes, hang on there, Ting Fang, we'll get to you. So she's sending out further questions to my iPad. Okay, Mark. Sandra Ohlstorn, Financial Dagblad. I have two questions. The one is the gap between the orders and your outlook. I'm wondering how much has to do with the market and how much is ASML, as you're saying, preparing for the big upturn, but maybe you're... taking it easy on the execution or taking, The second question is about the China orders. It says in the press release that the export controls are going to cost 10 to 15% of Chinese revenue. Do you think that these export controls are going to

Speaker Change: This is my place. So I'm sure there are questions in the room. Let's start there because, you know, you're here. I have my colleague Mark here too with a microphone. For those who are online, I've got a colleague, Kelsey.

Sandra Ohlstorn: taking it easy on the execution or taking

Speaker Change: Taking it easy on.

Speaker Change: The execution or taking.

Sandra Ohlstorn: The second question is about the China orders, it says in the press release that the export controls do you think are going to cost 10 to 15% of the Chinese revenue? I was wondering in the past, ASML always communicated that revenue that is not made in China will always go somewhere else, I'm wondering if that's still the dynamic or is this really revenue that you're missing, how should I interpret it?

Speaker Change: She is taking your questions, and she'll send them through to my... Oh, Ting Fong's already there. Yes, hang on there, Ting Fong, we'll get to you. So she's sending on further questions to my iPad. Sandra Olsdorn, Financile Dagblad.

Speaker Change: Your foot off the gas to prepare yourself, if you know what I mean, and the second question is about the China orders and it says in the press release that the export controls do you think are going to cost 10% to 15% of the Chinese revenue.

Speaker Change: I was wondering in the past asthma always clean.

Sandra Olsdorn: I have two questions. The one is about the gap between orders and your outlook. I'm wondering how much has to do with the market and how much is ASML, as you're saying, preparing for the big upturn, but maybe you're... taking it easy on the execution or taking your foot off the gas to prepare yourself, if you know what I mean. The second question is about the China orders. It says in the press release that the export controls, do you think are going to cost 10 to 15 percent of Chinese revenue? I was wondering. In the past, ASML always communicated that revenue that is being made and not made in China will always go somewhere else. I'm wondering if that's still the dynamic, or is this really revenue that you're missing? How should I interpret that? Peter, should I take the first one or the second?

Speaker Change: Communicated that.

Speaker Change: Revenue that is being made and are not made in China will always go somewhere else and wondering if that's still the dynamic or is this really revenue that you are missing how should I interpret it is not to take the first one the second tier that's where it all so on the first one.

Sandra Olsthoorn: I'm wondering if that's still the dynamic or is this really revenue that you're missing? How should I interpret?

Roger Dassen: Peter, should I take the first one?

Peter Wennink: Yeah.

Roger Dassen: The second?

Speaker Change: Peter, should I take the first one and the second? Yeah, that's all right. So on the first one, by default, we never take the foot off the accelerator, right? So that's not what we're doing. If you look at the orders that came in, a lot of those orders, some of that was for 2024, a lot of those were for 2025, right? So it is a very good start into the growth year of 2025. For 2024, we're essentially covered with orders. So for the amount that we're guiding, we have the orders in. And of course, it could be, if Peter talked about the slope of the ramp, if the slope of the ramp is going to be more aggressive, if indeed customers see that demand is going to come back stronger in the course of 2024, then I'm pretty sure customers will start knocking on the door and say, hey, could we accelerate some of the demand? And as Peter said, we look at 24 and 25 combined. And we know 24 and 25 combined will be two big years. It's just a matter of, is it going to fall into one bucket? Or is it going to fall into the other bucket? So you're absolutely right. I mean, there are a few strong indications of recovery. The utilization of our tools is improving. Inventories at customers and end customers are actually going down, which is always a healthy sign. And indeed, the order intake is strong. So there are some very positive developments. But we said, it's a bit early days. Three months ago, we said, we expected that the year is going to be flat. It's a bit too early to now say that we're at that. That we're going to adjust our guidance. So we stick to what we call conservative guidance for the year. Could it be that some demand is going to be accelerated from 25 into 24? Absolutely. But that's not what we're guiding to.

Peter Wennink: Yeah. That's all right.

Roger Dassen: On the first one, by default, we never take the foot off the accelerator, right? That's not what we're doing. If you look at the orders that came in, a lot of those orders, some of that was for 2024, a lot is also for 2025, right? It is a very good start into the growth year of 2025. For 2024, we're essentially covered with orders. You know, for the amount that we're guiding, we have the orders in. Of course, it could be if, you know, Peter talked about the slope of the ramp.

Speaker Change: I was wondering, in the past, ASML always communicated that revenue that is not made in China will always go somewhere else. I'm wondering if that's still the dynamic, or is this really revenue that you're missing? Peter, should I take the first one and the second one? Yeah, that's all right. So on the first one, by default, we never take the foot off the accelerator, right? So that's not what we're doing. If you look at the orders that came in, a lot of those orders, some of that was for 2024, a lot of those were for 2025, right? So it is a very good start to the growth year of 2025. For 2024, we're essentially covered with orders.

Speaker Change: By default, we never take the foot off the accelerator I throw level, that's not what we're doing.

Speaker Change: If you look at the orders that came in a lot of those orders. Some of that was for 24 allowed US also for 25 right. So it is a very good start into the growth year of 'twenty twenty-five for twenty-four essentially covered with it with aura. So you know the four therefore the amount that we're that we're guiding we have we have the orders in of course, it could be if at all.

Speaker Change: Peter talked about the slope of the ramp if the slope of the ramp is going to be more is going to be more aggressive if indeed customers see that demand is going to two to come back stronger in the course of 'twenty 'twenty four that I'm pretty sure customers will start knocking on our door and say hey could we accelerate some of the some of the demand and.

Roger Dassen: If the slope of the ramp is going to be more aggressive, if indeed customers see that demand is going to come back stronger in the course of 2024, then I'm pretty sure customers will start knocking on our door and say, "Hey, could we accelerate some of the demand?" As Peter said, we look at 2024 and 2025 combined, and we know 2024 and 2025 combined will be two big years. It's just a matter of, is it gonna fall into one bucket or is it gonna fall into the other bucket? You're absolutely right. I mean, there are a few strong indications of recovery. The utilization of our tools is improving.

Speaker Change: So for the amount that we're guiding, we have the orders in. And of course, it could be, if Peter talked about the slope of the ramp, if the slope of the ramp is going to be more aggressive, if indeed customers see that demand is going to come back stronger in the course of 2024, then I'm pretty sure customers will start knocking on the door and say, "Hey, could we accelerate some of the demand?" And as Peter said, we look at 24 and 25 combined. And we know 24 and 25 combined will be two big years. It's just a matter of whether or not all of it is going to fall into one bucket.

Sandra Olsdorn: Yeah, that's all right. So on the first one, by default, we never take the foot off the accelerator, right? So that's not what we're doing. If you look at the orders that came in, a lot of those orders, some of that was for 24, but a lot is also for 25, right? So it is a very good start to the growth year of 2025. For 24, we're essentially covered with orders. So, you know, for the amount that we're guiding, we have the orders in. Of course, it could be if, you know, Peter talked about the slope of the ramp, if the slope of the ramp is going to be more aggressive, if indeed customers see that demand is going to come back stronger in the course of 2024, then I'm pretty sure customers will start knocking on the door and say, "Hey, could we accelerate And as Peter said, we look at 24 and 25 combined, and we know 24 and 25 combined will be two big years. It's just a matter of whether it is going to fall into one bucket or is it going to fall into the other bucket?

Speaker Change: And as Peter said, we look at 24, and 25 combined and we know 24 and 25 combined will be two big years. It's just a matter of isn't going to fall into one bucket or is it going to fall into the other buckets. So youre absolutely right. I mean, there is a there is a there are a few strong indications of recovery the utilization of our tools is improving inventories.

Roger Dassen: Inventories at customers and end customers are actually going down, which is always a healthy sign. Indeed, the order intake is strong. There are some very positive developments. We said it's a bit early days. You know, three months ago, we said, you know, we expected that the year is gonna be flat. It's a bit too early to now say that we're gonna adjust our guidance. We stick to our what we call conservative guidance for the year. It could be that, you know, some demand is going to be accelerated from 2025 into 2024? Absolutely. That's not what we're guiding today.

Speaker Change: At customers and end customers are are actually going down which is always a healthy sign.

Speaker Change: And indeed, the order intake is strong so they're awesome very positive developments, but we said it's a bit early days.

Speaker Change: Or is it going to fall into the other bucket? So you're absolutely right. I mean, there are a few strong indications of recovery. The utilization of our tools is improving. Inventories at customers and end customers are actually going down, which is always a healthy sign. And, indeed, the order intake is strong. So there are some very positive developments, but as we said, it's a bit early days. Three months ago, we said that we expected that the year was going to be flat. It's a bit too early to now say that we're at that. That we're going to adjust our guidance. So we stick to what we call conservative guidance for the year. Could it be that some demand is going to be accelerated from 25 to 24?

Speaker Change: Three months ago, we said, we expected that the year is going to be flat, it's a bit too early to now say that we're at that we're going to that we're going to adjust our guidance. So we stick to our what we call a conservative guidance for the year. It could it be that you know some demand is going to be accelerated from twenty-five into 'twenty four absolutely, but that's not what we're guiding today.

Sandra Olsthoorn: If that happens, then you can also.

Speaker Change: If that happens, then from a capacity perspective, we would be able to do more. To ship earlier. Yeah, to ship earlier.

Speaker Change: If that happens then from a capacity perspective, we would be able to to that you did walk through ship earlier, yeah, yeah. So shibuya yep.

Roger Dassen: If that happens, then from a capacity perspective, we would be able to do more. We-

Sandra Olsdorn: So you're absolutely right. I mean, there are a few strong indications of recovery. The utilization of our tools is improving. Inventories at customers and end customers are actually going down, which is always a healthy sign. And indeed, the order intake is strong, so there are some very positive developments. But we said it's a bit early days. You know, three months ago, we said, you know, we expected that the year was going to be flat.

Peter Wennink: To ship earlier.

Roger Dassen: Yeah. To ship earlier. Yeah.

Peter Wennink: I think also you need to realize that the order lead time for instance EUV system is between 12 and 18 months, and for a High-NA system even longer. As all those orders are also with the eye on, for instance, the end of the year or, you know, 2025. Yeah. That's also the case. Now on our China business, strong. Yeah. As I said it before, the 2023 is really a reflection of our under-shipment in 2022 and 2021, where we basically had the orders. We ship the orders in 2023 that we got in, you know, 2022. Yeah.

Speaker Change: And I think also you need to realize that the order lead time for, for instance, EUV systems is between 12 and 18 months and for a high-end system even longer. So all those orders are also with the eye on, for instance, the end of the year or, you know, 2025. So that's also the case. Now on our China business, strong, yeah, but as I said it before, the 2023 is really a reflection of our undershipment in 22 and 21 where we basically had the orders. So we shipped the orders in 23 that we got in, you know, 22, yeah. And the rest of the industry went through a downturn, but we undershipped China significantly. I think it was, they got what we call the orders. The order fill rate was less than 50%.

Speaker Change: And I think also you need to.

I realize that that the order lead time for friends. He wishes wish between 12 and 18 months if we're in high in Asia, some even longer so.

Speaker Change: Absolutely, but that's not what we're guiding to. If that happens, then from a capacity perspective, we would be able to do more and ship earlier. Yeah, to ship earlier. And I think you also need to realize that the order lead time for, for instance, EUV systems is between 12 and 18 months and for a high-end system even longer. So all those orders are also with an eye on, for instance, the end of the year or, you know, 2025. So that's also the case. Now on our China business, strong, yeah, but as I said before, 2023 is really a reflection of our undershipment in 22 and 21, where we basically had the orders. So we shipped the orders in 23 that we got in, you know, 22 yeah.

Speaker Change: It was also of those orders are also with the eye on for interest at the end of the year or you know 2025.

Speaker Change: So that's also the case now on.

Sandra Olsdorn: It's a bit too early to now say that we're going to adjust our guidance. So we stick to our what we call conservative guidance for the year. Could it be that, you know, some demand is going to be accelerated from 25 to 24? Absolutely. But that's not what we're getting today.

Speaker Change: Our China business strong.

Speaker Change: But as I said it before.

Speaker Change: The 2023 is really a reflection of our under shipment.

Speaker Change: In 'twenty, two and 'twenty, one where we basically had the had the order. So we should we should we shipped the orders in 'twenty three for that.

That we got in 'twenty two.

Sandra Olsdorn: If that happens, then from a capacity perspective, we would be able to do more and ship earlier. Yeah, to ship earlier. And I think you also need to realize that the order lead time for, for instance, EUV systems is between 12 and 18 months and for an INAE system is even longer. So all those orders are also with an eye on, for instance, the end of the year or, you know, 2025. So that's also the case. Now, on our China business, strong, but as I said before, 2023 is really a reflection of our undershipment in 22 and 21, where we basically had the orders. So we shipped the orders in 23, but that, that, that we got in, you know, 22. And the rest of the industry went through a downturn, but we undershipped China significantly. As it was, they got what we call the order fill rate was less than 50%.

Peter Wennink: The rest of the industry went through a downturn, but we under-shipped China significantly. They got what we call the order fill rate was less than 50%. So that's all clearly created a situation where you can ship in 2023. Now, the 10% to 15% you referred to, we just gave this as an indication of the size of the impact of the export control. It's about 10% to 15% of the 2023 China sales. Yeah? So that kind of gives you an indication that, yes, it has an impact. Clearly, it has an impact. But what's our China business? Our China business is significantly in the area of the mature chips and the, let's say, the mid critical chips. And why is that? It goes back to the, you know, our slides that I showed.

Speaker Change: And the rest of the industry went through a downturn, but we under shipped China significantly of it was what we called the order fill rate was less than 50%.

Speaker Change: So that's all clearly created a situation where you can ship in 2023. Now, the 10% to 15% you referred to, we just gave this as an indication of the size of the impact of the export control. It's about 10% to 15% of the 2023 China sale.

Speaker Change: So that's all clearly greater situation, where you can ship in the 20th century now the 10% to 15% you referred to we just gave as an indication of the size of the impact of the export control is about 10% to 15% of the 2023, China sales yeah. So that's a kind of to give you an indication that yes. It has an impact clearly it has an impact.

Speaker Change: And the rest of the industry went through a downturn, but we undershipped China significantly. I think it was because they got what we call orders. The order fill rate was less than 50%. So that's all clearly created a situation where you can ship in 2023. Now, the 10% to 15% you referred to, we just gave this as an indication of the size of the impact of export control. It's about 10% to 15% of the 2023 Chinese sale, yeah, so that's a kind of you giving you an indication that yes it has an impact, clearly it has an impact, but what is our China business? Our China business is significantly in the area of the mature chips and less in the area of the mid-critical chips.

Speaker Change: yeah so that's a kind of you give you an indication that yes it has an impact clearly it has an impact but

Speaker Change: But.

Speaker Change: What's our China business? Our China business is significantly in the area of the mature chips and the less of the mid-critical chips. And why is that? It goes back to the slides that I showed. When you talk about connectivity, you talk about AI, it's all about advanced. That's not in China. But when you think about the rest of these trends, whether it's energy transition, EV transition, industrial IoT, the rollout of smart grids, life sciences, that's where the Chinese industrial capability is pretty high. And they need a lot of chips. So this is why they are buying that stuff, and they will keep buying that stuff. But you're also right to say what we don't sell to China.

Speaker Change: And what's our China business, our China business is significantly.

Speaker Change: In the area of the mature chips and the lesser amidst critical chips and why is that it goes back to the you know our.

Speaker Change: Slides that I showed when you're talking about connectivity you talk about AI, it's all about advanced theres not in China.

Peter Wennink: When you talk about connectivity, you talk about AI, it's all about advanced. That's not in China, you know. It's when you think about the rest of these trends, whether it's energy transition, EV transition, industrial IoT, the rollout of smart grids, these, you know, life sciences, that's where the Chinese industrial capability is pretty high, and they need a lot of chips. This is why they are buying that stuff, and they will keep buying that stuff. You're also right that say, what we don't sell to China, we'll sell somewhere else because our Chinese customers or the end customers in China still buy chips. They buy chips from Korea. They buy chips from Taiwan. They buy chips from the United States. The advanced chips, they still buy. They don't make them.

Speaker Change: But it's when you think about the rest of these trends whether its energy transition EV transition industrial Iot.

Sandra Olsdorn: So that's all clearly created a situation where you can ship in 2023. Now, the 10 to 15 percent you refer to, we just gave this as an indication of the size of the impact of export control. It's about 10 to 15 percent of the 2023 Chinese sales. Yeah, so that kind of gives you an indication that yes, it has an impact.

Speaker Change: The rollout of smart grids.

Speaker Change: These.

Speaker Change: Life Sciences, that's where the Chinese industrial capability is pretty high and they need a lot of chips. So this is why they are buying that stuff and it will keep buying that stuff, but you're also right that say, what we don't sell to China.

Speaker Change: And why is that? It goes back to the slides that I showed earlier. When you talk about connectivity, you talk about AI, it's all about advanced. That's not the case in China. But when you think about the rest of these trends, whether it's the energy transition, the EV transition, industrial IoT, the rollout of smart grids, life sciences, that's where China's industrial capability is pretty high. And they need a lot of chips. So this is why they are buying that stuff, and they will keep buying that stuff. But you're also right to say what we don't sell to China. We'll sell somewhere else because our Chinese customers, or the end customers in China, still buy chips. They buy chips from Korea. They buy chips from Taiwan and from the United States.

Sandra Olsdorn: Clearly, it has an impact, but what is our China business? Our China business is significantly in the area of the mature chips and the less critical chips. And why is that?

Speaker Change: We'll sell somewhere else, because our Chinese customers, or the end customers in China, still buy chips. They buy chips from Korea. They buy chips from Taiwan. They buy chips from the United States. So the advanced chips, they still buy. They don't make them. They make the mature chips. So that will actually reposition itself. So you are right. What we don't sell in terms of advanced chips, still the capacity is needed. We'll sell somewhere else.

Speaker Change: Sell somewhere else because.

Speaker Change: Our Chinese customers or the end customers in China still buy chips, they buy chips from.

Sandra Olsdorn: It goes back to the slides that I showed. When you talk about connectivity, you talk about AI, it's all about advanced. That's not what China is.

Speaker Change: Korea, thereby chips from Taiwan, they buy chips from the United States. So the advanced chips, they still buy and they don't make them and make the mature chips.

Peter Wennink: They make the, you know, mature chips. That will actually reposition itself. You are right. What we don't sell in terms of advanced chips, still the capacity is needed. We'll sell somewhere else.

Sandra Olsdorn: But when you think about the rest of these trends, whether it's the energy transition, the EV transition, industrial IoT, the rollout of smart grids, life sciences, that's where China's industrial capability is pretty high. And they need a lot of chips. So this is why they are buying that stuff. And they will keep buying that stuff. But you're also right that what we don't sell to China, we'll sell somewhere else because our Chinese customers, or the end customers in China, still buy chips. They buy chips from Korea. They buy chips from Taiwan and from the United States. So the advanced chips are still bought; they don't make them.

Speaker Change: So that will actually reposition itself. So you are right. What we don't sell in terms of advanced chips still the capacity as needed we will sell somewhere else.

Monique Mols: Okay, next question.

Speaker Change: Okay next question.

Speaker Change: Okay, next question.

Speaker Change: So the advanced chips are still bought; they don't make them.

Pieter Haeck: Hi. Pieter Haeck from POLITICO. I had a question on Taiwan. There were recent elections there that gave the victory to a more China skeptic candidate. There were also some strong remarks from the Chinese president on reunification with Taiwan. You have a sizable presence and a sizable revenue also in Taiwan. Are you increasingly cautious or concerned about the business side in Taiwan?

Speaker Change: Hi, Peter Haag from Politico. I had a question on Taiwan. There were recent elections there that gave the victory to a more China-skeptic candidate. There were also some strong remarks from the Chinese president on reunification with Taiwan. You have a sizable presence and a sizable revenue also in Taiwan. Are you increasingly cautious or concerned about the business side in Taiwan? No.

Speaker Change: They make mature chips. So that will actually reposition itself. So you are right. What we don't sell in terms of advanced chips, the capacity is still needed. We'll sell somewhere else. Okay, next question. Hi, Peter Haag from Politico.

Speaker Change: Hi, Peter Hecht from political I had a question on Taiwan, there were recent elections there.

Speaker Change: That gave to victory to more China's skeptic candidates. There were also some strong remarks from the Chinese president on reunification with Taiwan, you have a sizable presence in a sizeable.

Speaker Change: Revenue also in Taiwan are you increasingly cautious or concerned about the business site in Taiwan.

Peter Wennink: No, I think these are political elections, and you know, you can read the political analysis of the people who really understand this, which you know, you shouldn't ask me, but what I read is that you know, as always, yes, there is this new president that is from this particular party, but they don't have the majority in parliament. So big law changes need to go through parliament, which basically creates this balanced situation where you know, there's always going to be political gives and takes across the globe. You know, that's true for Taiwan, as I think is true for many other countries.

Sandra Olsdorn: They make mature chips. So that will actually reposition itself. So you are right. What we don't sell in terms of advanced chips, the capacity is still needed. We will sell somewhere else. Okay, next question. Hi Peter Haak from Politico. I had a question on Taiwan. There were recent elections there that gave the victory to a more China-skeptic candidate.

Speaker Change: <unk>.

Speaker Change: I can't give you a very short answer, but I think these are political elections and you can read the political analysis of the people who really understand this, which you shouldn't ask me. But what I read is that, you know, it's always, yes, there is this new president that is from this particular party, but they don't have the majority in parliament, so big law changes need to go through parliament, which basically creates this balanced situation where, you know, there's always going to be political, you know, gives and takes across the globe. You know, that's true for Taiwan, I think it's true for many, many other countries. So we'll just follow what's happening. And we don't feel that what happened in Taiwan is a reason why we should lower our activity in Taiwan, no.

Peter Haag: I had a question on Taiwan. There were recent elections there that gave the victory to a more China-skeptic candidate. There were also some strong remarks from the Chinese president on reunification with Taiwan.

Speaker Change: No I can give you a very short answer is no I think these are political elections and you.

Speaker Change: You can you can read the political analysis of the people, who really understand this which you shouldn't ask me, but what I read. This is that you know is always yes. There is this new president that is from this particular party and but they don't have the majority in parliament. So big law changes need to where we need to go through Parliament, which base.

Peter Haag: You have a sizable presence and sizable revenue also in Taiwan. Are you increasingly cautious or concerned about the business side in Taiwan?

Peter Haag: No. I can't give you a very short answer, but I think these are political elections, and you can read the political analysis of the people who really understand this, which you shouldn't ask me. But what I read is that, you know, it's always, yes, there is this new president that is from this particular party, but they don't have the majority in parliament, so big law changes need to go through parliament, which basically creates this balanced situation where, you know, there's always going to be political gives and takes across the globe. You know, that's true for Taiwan; I think it's true for many, many other countries. So we'll just follow what's happening.

Speaker Change: It really creates this balanced situation, where you know there's always going to be political.

Peter Haak: There were also some strong remarks from the Chinese president on reunification with Taiwan. You have a sizable presence and a sizable revenue also in Taiwan. Are you increasingly cautious or concerned about the business side in Taiwan? No. I can't give you a very short answer, but I think these are political elections and you can read the political analysis of the people who really understand this, which you shouldn't ask me. But what I read is that, as always, yes, there is this new president that is from this particular party, but they don't have the majority in parliament.

Speaker Change: You know gives and takes.

Speaker Change: Across the globe, that's true for tire walnuts I think is true for many many other countries. So we'll just follow what's happening and we.

Peter Wennink: We'll just follow what's happening, and we don't feel that what happened in Taiwan is a reason why we should lower our activity in Taiwan. No.

Speaker Change: We don't feel that that that what happened in Taiwan as a reason why we should lower our activity in the tier one though.

Monique Mols: Okay. Thank you. Let's move to a question from Asia, Cheng Ting-Fang from Nikkei Asia, about Japan. Please, could you share how you think of Japan's plan to bring back their chip industry and supply chain? Do you think they will be successful, and what are the challenges and opportunities? I guess she's talking about Rapidus. One of your major customers expansion went quite well in Japan. What are ASML's expansion plans and status in Japan, and how do you observe Japan's opportunities?

Speaker Change: Thank you. So let's move to a question from Asia, Ting Fong from Nikkei Asia, about Japan. Please could you share how you think of Japan's plan to bring back their chip industry and supply chain? Do you think they will be successful and what are the challenges and opportunities? I guess she's talking about Rapidus. One of your major customers' expansion went quite well in Japan. What are ASML's expansion plans and status in Japan and how do you observe Japan's opportunities?

Speaker Change: Thank you so let's move to a question from Asia.

Speaker Change: Thing Fung from Nikkei Asia about Japan, and please could you share how you think of Japan's plan to bring back their chip industry and supply chain do you think they will be successful and what are the challenges and opportunities and she's talking about her opinions one of your major customers expansion went quite well in Japan, what are Asml's X.

Peter Haag: And we don't feel that what happened in Taiwan is a reason why we should lower our activity in Taiwan.

Peter Haak: So big law changes need to go through parliament, which basically creates this balanced situation where there's always going to be political gives and takes across the globe. That's true for Taiwan. I think it's true for many, many other countries. So we'll just follow what's happening, and we don't feel that what happened in Taiwan is a reason why we should lower our activity in Taiwan. Thank you. So let's move to a question from Asia, Ting Fong from Nikkei Asia, about Japan. Please could you share how you think of Japan's plan to bring back the chip industry and supply chain? Do you think they will be successful, and what are the challenges and opportunities?

Speaker Change: Thank you. So let's move to a question from Asia, Ting Fong from Nikkei Asia, about Japan. Please could you share what you think of Japan's plan to bring back its chip industry and supply chain?

Speaker Change: Pension plans and status in Japan, and how do you observe Japan's opportunities.

Peter Wennink: Well, I think, you know, Japan has a very strong history in semiconductor manufacturing. For all kinds of reasons, the market share of the Japanese manufacturers went down. I think there's a very clear focus of the Japanese government to reinstate that, you know. It's not only historically very good in memory, but, you know, we now have a new initiative, Rapidus, which is basically focusing on advanced, you know, semiconductor manufacturing, which, of course, we are going to supply very advanced machines. So I think, it's going to be a challenge. You know, where is the challenge? The challenge is, you know, you have to rebuild some of that, some of what was actually slowing down or has slowed down over the last couple of years or less over the decades.

Speaker Change: Well I think you know Japan is a very strong history in the semiconductor manufacturing ever all kinds of reasons the market share of the Japanese.

Speaker Change: Well, I think, you know, Japan has a very strong history in semiconductor manufacturing. And for all kinds of reasons, the market share of the Japanese manufacturers went down. I think there's a very clear focus of the Japanese government to reinstate that. You know, and it's not only historically very good in memory, but, you know, we now have a new initiative, Rapidus, which is basically focusing on advanced semiconductor manufacturing, which, of course, we are going to supply very advanced machines. So I think it's going to be a challenge, you know, I'm not going to, but, and where is the, you know, challenge? The challenge is, you know, you have to rebuild some of that, some of what was actually slowing down or has slowed down over the last couple of years or last couple of decades. So that means people, so you need to invest in people, you need to invest in the ecosystem. And this is also why your industry partners like ASML will also invest.

Speaker Change: Do you think they will be successful? And what are the challenges and opportunities?

Speaker Change: Manufacturers went down.

Speaker Change: I guess she's talking about Rapidus. One of your major customers' expansion went quite well in Japan.

Speaker Change: There's a very clear focus of the Japanese government to reinstate that.

Speaker Change: What are ASML's expansion plans and status in Japan, and how do you see Japan's opportunities? Well, I think, you know, Japan has a very strong history in semiconductor manufacturing. And for all kinds of reasons, the market share of Japanese manufacturers went down. I think there's a very clear focus of the Japanese government to reinstate that.

Speaker Change: And theres not only their historically very good in memory, but.

Speaker Change: We now have a new initiative rapidly this which is basically focusing on advanced.

Speaker Change: Semiconductor manufacturing, which of course, we're going to supply very advanced machines. So I think.

Speaker Change: It's going to be a challenge no I'm not going to but and where is the challenge. The challenge is you have to rebuild some of that some of what was actually slowing down at all or has slowed down over the last couple of years or last couple of decades. So that means people. So we need to invest in people invest in the ecosystem.

Ting Fong: One of your major customers' expansion went quite well in Japan. What are ASML's expansion plans and status in Japan, and how do you see Japan's opportunities? Well, I think, you know, Japan has a very strong history in semiconductor manufacturing. And for all kinds of reasons, the market share of Japanese manufacturers went down.

Speaker Change: You know, and it's not only historically very good at memory, but, you know, we now have a new initiative, Rapidus, which is basically focusing on advanced semiconductor manufacturing, which, of course, we are going to supply very advanced machines. So I think it's going to be a challenge, you know, I'm not going to, but where is the, you know, challenge? The challenge is, you know, you have to rebuild some of that, some of what was actually slowing down or has slowed down over the last couple of years or the last couple of decades. So that means people, so you need to invest in people; you need to invest in the ecosystem. And this is also why your industry partners like ASML will also invest.

Peter Wennink: That means people. You need to invest in people. You need to invest in the ecosystem. It is also why your industry partners, like ASML, will also invest where this new enterprise, you know, Rapidus, is going, we will go. With us, others will go. It's going to take some time, but with the right focus, with the right incentive programs, it means that you can reinstate that. I think that's the goal, and I think we all should be. I'm an optimist that, of course, worries a lot from time to time. My optimism clearly tells me that if you have the right focus, and also you made reference to one of the initiatives that is building out, that's a Taiwanese company, building out, excess capacity or extra capacity in Taiwan.

Speaker Change: This is also why your industry bodies like ASML will also invest where.

Speaker Change: Where this new enterprise, Rapidus, is going, we will go. But with us, others will go. So it's going to take some time, but with the right focus, with the right incentive programs, it means that you can reinstate that. I think that's the goal, and I think we all should be... I'm an optimist. That, of course, worries a lot from time to time. But my optimism clearly tells me that if you have the right focus, and also you made reference to one of the initiatives that is building out, that's a Taiwanese company, building out excess capacity or extra capacity in Taiwan, so in Japan, that's going according to schedule. There's also very much a Japanese characteristic. When they do it, they plan it, they execute. So everything's there. It's not going to be easy. These things aren't easy, but we're there to help. All right. Thank you. Questions in the room?

Ting Fong: I think there's a very clear focus of the Japanese government to reinstate that, you know, and it's not only historically very good in memory, but, you know, we now have a new initiative, Rapidus, which is basically focusing on advanced semiconductor manufacturing, which, of course, we are going to supply very advanced machines. So I think it's going to be a challenge. But I'm not going to.

Speaker Change: This new antibodies rapid is going we will go but with US all of those will go so it's going to take some time, but with the right focus with the right incentive programs.

Speaker Change: It means that you can reinstate that I think that's the goal and I think we all should be I'm, an optimist, but of course worries a lot from time to time, but my optimism is glitter tells me that if you have the right focus and you also you made reference to one of the initiatives that is building out there's a taiwanese.

Speaker Change: Wherever this new enterprise, Rapidus, is going, we will go. But with us, others will go too. So it's going to take some time, but with the right focus, with the right incentive programs, it means that you can reinstate that. I think that's the goal, and I think we all should be... I'm an optimist, which, of course, worries me a lot from time to time. But my optimism clearly tells me that if you have the right focus, and also you made reference to one of the initiatives that is building out, that's a Taiwanese company building out excess capacity or extra capacity in Taiwan, so in Japan, that's going according to schedule.

Ting Fong: But where is the challenge? The challenge is, you know, you have to rebuild some of that, some of what was actually slowing down or has slowed down over the last couple of years or last couple of decades. So that means people.

Speaker Change: Company building out excess capacity or extra capacity in Taiwan and in Japan.

Peter Wennink: In Japan, that's going according to schedule. There's also very much a Japanese characteristic, you know. When they do it, they plan it, they execute. You know, everything's there. You know, we just need. It's not gonna be easy. These things aren't easy. Yeah. But we're there to help.

Ting Fong: So you need to invest in people. You need to invest in the ecosystem. It is also why your industry partners like ASML will also invest, where this new enterprise you know Rapidus is going we will go but with us others will go so it's going to take some time but with the right focus with the right incentive programs it means that you can reinstate that I think that's the goal and I think we all should be I'm an optimist that of course worries a lot from time to time but my optimism clearly tells me that if you have the right focus and you also you made reference to one of the initiatives that is building out that's that's a Taiwanese company building out excess capacity of extra capacity in Taiwan so in Japan that's going according to schedule there's also very much a Japanese characteristic you know when they do it they plan it they execute so you know everything's there yeah we're just it's going to be not going to be easy these things aren't easy yeah but we're there to help all right thank you questions in the room yeah, Good morning, I'm Sarah Jacob from Bloomberg News. Can we expect the contribution from the Chinese market to ASML sales to go back to single digits in 2024? Go back to single digit, yeah, single digit, for the last couple of years it hasn't been single digit and I don't expect it to come to go to single digit either.

Speaker Change: That's going according to schedule is also very much a Japanese characteristic you know when they do at the plan that we execute so no everything's there we're just Nick.

Speaker Change: I want to be not going to be easy these things aren't easy, but we're there to help I think your.

Monique Mols: Okay. Thank you. Questions in the room? Yeah.

Speaker Change: Questions in the room.

Sarah Jacob: Good morning. I'm Sarah Jacob from Bloomberg News. Can we expect the contribution from the Chinese market to ASML sales to go back to single digits in 2024?

Speaker Change: Good morning synergy come from Bloomberg News can we expect the contribution from the Chinese market to ASML seems to go back to single digits in 2024.

Speaker Change: Good morning, I'm Sarah Jacob from Bloomberg News. Can we expect the contribution from the Chinese market to ASML sales to go back to single digits in 2024?

Speaker Change: There's also very much a Japanese characteristic. When they do it, they plan it, they execute it. So everything's there. But it's not going to be easy. These things aren't easy, but we're there to help. All right. Thank you. Questions in the room? Good morning, I'm Sarah Jacob from Bloomberg News. Can we expect the contribution from the Chinese market to ASML sales to go back to single digits in 2024? Go back to single-digit. Single-digit. For the last couple of years, it hasn't been single-digit, and I don't expect it to go to single-digit either. Like I said, if you look at 2023 and the impact of the export control rules, it's 10% to 15% of our 2023 business, whereas the rest of the business is mature technology needed for all the transitions that we're currently having to deal with.

Peter Wennink: Go, go back to sing... It's, it's-

Speaker Change: Go go go back to say, it's Richard Yeah at Ingalls did you ever for last couple of years.

Speaker Change: Go back to single-digit. Single-digit. For the last couple of years, it hasn't been single-digit, and I don't expect it to go to single-digit either. Like I said, if you look at 2023 and the impact of the export control rules, it's 10% to 15% of our 2023 business, whereas the rest of the business is mature technology that are needed for all the transitions that we're currently having to deal with.

Sarah Jacob: Single digits.

Peter Wennink: Yeah.

Sarah Jacob: Single digits.

Peter Wennink: For the last couple of years.

Sarah Jacob: Percent

Peter Wennink: It hasn't been single digit, and I don't expect it to go to single digit either. Like I said, if you look at 2023 and you take the impact of the export control rules, it's 10% to 15% of our 2023 business, whereas the rest of the business is mature technology that are needed for all the transitions that we're currently having to deal with. I don't expect that. Like I said, the last couple of years it hasn't been single digits, and I don't think it's going to be.

Speaker Change: Hasn't been single digit and I don't expect it to come to go to single digit either like I said, if you look at 2023 and you take the impact of the export control rules, it's 10% to 15% of our 2023 business, whereas the rest of the business is mature technology that are needed for all the <unk>.

Speaker Change: Transitions that we're currently having to deal with so I don't expect that like I said the last couple of years. It hasn't been single digit and I don't think it's going to be yeah, not for anyone in the industry right now.

Speaker Change: So I don't expect that. Like I said, the last couple of years it hasn't been single-digit and I don't think it's going to be. Not for anyone in the industry, right?

Monique Mols: Yeah. Not for anyone in the industry, right?

Peter Wennink: No, not that it's not only for us.

Monique Mols: Right. Yeah.

Speaker Change: No, that's not only for us. I mean, you know, without just taking a lithography tool, you can't make a chip. You know, there's our U.S. peers and our Korean peers. Just look at their financial statements. They're just going very strong, especially in this domain of the more mature or the mid-critical part of the semiconductor management.

Peter Wennink: I mean, you know, without just taking a lithography tool, you can't make a chip. You know, there's our US peers and our Korean peers. Just look at their financial statements. They're just, well, going very strong, especially in this domain of the more mature or the mid-critical part of semiconductor manufacturing. Yeah.

Speaker Change: Theres not only for us I mean, yeah.

Without it.

Speaker Change: Just taking a lithography tool you can't make a chip you know this is our U S peers in our Korean peers, they're they're they're just look at their financial statement was there just well.

Sarah Jacob: So I don't expect that.

Ongoing very strong, especially in this domain of the more mature or the mid critical part of semiconductor manufacturing.

Sarah Jacob: Like I said, in the last couple of years, it hasn't been single-digit, and I don't think it's going to be.

Sarah Jacob: Like I said, if you look at 2023 and you take the impact of the export control rules, it's 10 to 15 percent of our 2023 business, whereas the rest of the business is mature technology needed for all the transitions that we're currently having to deal with. So I don't expect that. Like I said, the last couple of years, it hasn't been single digits, and I don't think it's going to be. Yeah, not for anyone in the industry, right?

Sarah Jacob: Not for anyone in the industry, right? No, that's not only for us. I mean, you know, without just taking a lithography tool, you can't make a chip. There are our U.S. peers and our Korean peers. Just look at their financial statements. They're just going very strong, especially in this domain of the more mature or the mid-critical part of the semiconductor industry.

Monique Mols: Okay. Anyone else in the room? Yeah. Merlijn.

Speaker Change: Okay.

Speaker Change: Anyone else in the room? Ja, Marlijn.

Speaker Change: Anyone else in the room yeah.

Speaker Change: <unk>.

Merlijn van Dijk: Thanks. Merlijn van Dijk, Eindhovens Dagblad. During 2023, you slowed down the hiring of new people significantly, also here in Veldhoven. Could you elaborate on your plans for 2024? Maybe also give a number as to how many people you are planning to hire this year.

Speaker Change: Thanks.

Speaker Change: Your line for neck, and Overstock block during 2023, you slow down the hiring of new people are significantly significantly also here and felt over could you elaborate on your plans for 2024.

Speaker Change: Okay. Anyone else in the room?

Speaker Change: And maybe also give a number as to how many people you are planning to hire this year.

Speaker Change: That's not only for us, I mean, without just taking a lithography tool, you can't make a chip. You know, our US peers and our Korean peers, they look at their financial statements. They're just, you know, going very strong, especially in this domain of the more mature or the mid-critical part of the semiconductor main. Okay. Anyone else in the room?

Speaker Change: Ja, Marlijn.

Peter Wennink: Yeah. I think we're not going to give a number of the people going to hire. The slowdown is indeed that we slow down from hiring 10,000 people per year to 3,000 people per year. That's a slowdown. We're still hiring people, and we need to hire people 'cause we will grow. That's going to be a reflection of our forecasted growth. Our forecasted growth, if you just follow the indications we have given during our Capital Markets Days, is going to be double digit. Yeah. Now, that's going to be not a straight linear line. It's going to be somewhat, you know, bumpy, you could say. We're going to hire people.

Speaker Change: Yeah, I think we're not going to give a number of people going to hire, and the slowdown is indeed that we slow down from hiring 10,000 people per year to 3,000 people per year, so that's a slowdown, but we're still hiring people, and we need to hire people because we will grow.

Speaker Change: Yeah, I think we're not going to give a number of people who are going to hire and this and the slowdown is indeed that we slowed down from <unk> 10000 people per year to 3000 people a year. So that's a slowdown.

Speaker Change: Merlijn van Dijk, Eindhoven Stagblad. During 2023 you slowed down the hiring of new people significantly also here in Veldhoven. Could you elaborate on your plans for 2024 and maybe also give a number as to how many people you are planning to hire this year? Yeah, I think we're not going to give a number of people going to hire, and the slowdown is indeed that we slow down from hiring 10,000 people per year to 3,000 people per year, so that's a slowdown, but we're still hiring people, and we need to hire people because we will grow, and that's going to be a reflection of our forecasted growth and our forecasted growth as you which we just follow the the the indications we have given during our capital markets days is going to be double digit yeah now that's going to be not a straight linear line it's going to be somewhat you know bumpy you could say that from coming to higher people and in a period where it's going to be you know bumpy you could say that from coming to higher people and in a period where, Our industry, like we said 2024 is going to be a it's around the flat year yeah it also means that yes while we're hiring people we're also going to use that time to actually make those people that we hired to make them more efficient to make them more effective and to work on processes and to improve things that you can improve in the company but longer term, It's coming to be growth, and significant in terms of FTE people, So speaking of growth, I also got a question in from, and I'm hoping I'm pronouncing this correctly, Rida Lukil from Leusine Nouvel. Your Capex plan in 2024 compared to 2023, where does it go? The CAPEX plan. I think that will be sort of in line with what we had in 2023.

Speaker Change: But we're still hiring people and we need to hire people because we will grow.

Speaker Change: and that's going to be a reflection of our forecasted growth and our forecasted growth as you which we just follow the the the indications we have given during our capital markets days is going to be double digit yeah now that's going to be not a straight linear line it's going to be somewhat you know bumpy you could say that from coming to higher people and in a period where it's going to be you know bumpy you could say that from coming to higher people and in a period where

Speaker Change: And that's going to be a reflection of our forecasted growth in our forecasted growth or as you were if you just follow the the indication that we are giving our during our capital markets day is going to be double digit yeah.

Speaker Change: Yeah, I'm all in. Merlijn van Dijk, Eindhovense Dagblad During 2023, you slowed down the hiring of new people significantly, also here in Veldhoven. Could you elaborate on your plans for 2024? And maybe also give a number as to how many people you are planning to hire this year? Yeah, I think we're not going to give a number of the people we are going to hire, and the slowdown is indeed that we have slowed down from hiring 10,000 people per year to 3,000 people per year. So that's a slowdown.

Speaker Change: Now that that's going to be.

Speaker Change: Not a straight linear line, that's going to be somewhat.

Speaker Change: Bumpy you could say that we're going to hire people.

Peter Wennink: In a period where our industry, like we said, 2024 is going to be around a flat year. Yeah. It also means that, yes, while we're hiring people, we're also going to use that time to actually make those people that we hired, to make them more efficient, to make them more effective, and to work on processes and to improve things that you can improve in the company. Longer term, there's going to be growth, and significant in terms of, you know, FTEs people. Yeah.

Speaker Change: And in a period, where.

Speaker Change: Our industry.

Speaker Change: like we said 2024 is going to be a it's around the flat year yeah it also means that yes while we're hiring people we're also going to use that time to actually make those people that we hired to make them more efficient to make them more effective and to work on processes and to improve things that you can improve in the company but longer term

Speaker Change: Like we said 'twenty 'twenty four is going to be it was around the flat year. Yeah. It also means that yes, while we're hiring people. We're also going to use their time to actually make those people that we hired to make them more efficient to make them more effective and to work on processes and to improve things that you can improve in the company but longer term.

Speaker Change: But we're still hiring people, and we need to hire people because we will grow. And that's going to be a reflection of our forecasted growth, and our forecasted growth, as you just follow the indications we have given during our Capital Markets Days, is going to be double-digit. Now, it's not going to be a straight linear line; it's going to be somewhat, you know, bumpy, you could say, but we're going to hire people. And in a period where, as we said, 2024 is going to be a flat year, yeah, it also means that, while we're hiring people, we're also going to use that time to actually make those people that we hired, make them more efficient So speaking of growth, I also got a question in from, and I'm hoping I'm pronouncing this correctly, Rida Lukil from Leusine Nouvelle.

Speaker Change: It's coming to be growth.

Speaker Change: It would be growth.

Speaker Change: and significant in terms of

Speaker Change: And significant in terms of.

Speaker Change: FTE people

Speaker Change: If these people.

Monique Mols: Yeah. Speaking of growth, I also got a question in from... and I'm hoping I'm pronouncing this correctly, Ridha Loukil from L'Usine Nouvelle. French. Your CapEx plan in 2024 compared to 2023, where does it go?

Speaker Change: So speaking of growth, I also got a question in from, and I'm hoping I'm pronouncing this correctly, Rida Lukil from Leusine Nouvel.

So speaking of growth I also got a question in from and I'm, hoping I'm pronouncing this correctly and redial Lukoil from Louisiana, Nevada.

Speaker Change: French.

Rida Lukil: Your Capex plan in 2024 compared to 2023, where does it go?

Speaker Change: Your Capex plan in 2024 compared to 2023, where does it go.

Roger Dassen: The CapEx plan?

Monique Mols: Mm-hmm.

Speaker Change: The Capex plan and I think that will be sort of in line with what we had what we had in 2023 that would be my expectation. So you know as we mentioned before we are really building capacity against the targets that we've communicated before by 'twenty 'twenty five 'twenty 'twenty six we want to be able to do 90 E V and the 600 <unk>.

Roger Dassen: I think that will be sort of in line with what we had in 2023. That would be my expectation. You know, as we mentioned before, we are really building capacity against the targets that we've communicated before. By 2025, 2026, we wanna be able to do 90 EUV and 600 DUV. Midterm, we're looking at 20 High-NA. That's a big jump. Of course, that requires quite a bit of CapEx. You know, these are last year and also this year are the key years in which we're building that. I think it's prudent to expect that will be more or less at the same level.

Rida Lukil: The CAPEX plan. I think that will be sort of in line with what we had in 2023. That would be my expectation. So, you know, as we mentioned before, we are really building capacity against the targets that we've communicated before. By 2025, 2026, we want to be able to do 90 EUV and 600 DPV. And mid-term, we're looking at 20 high NA. So that's a big jump. And of course, that requires quite a bit of CAPEX. And, you know, these are last year and also this year are the key years in which we're building that. So I think it's prudent to expect that that will be more or less at the same level. I'm guessing the question is also in what regions are you investing in CAPEX? Oh, it's everywhere. So, of course, the lion's share of investments is here because this is where most of the manufacturing happens. But, you know, we're also investing in the United States. We're investing in Korea. We're investing in Taiwan. I mean, those are the places where we have the highest investments, some in China. So, you know, we are investing. And, you know, across the globe. Thank you.

Speaker Change: PV and midterm, we're looking at 'twenty Heinie. So that's that's a big jump and of course that requires quite a bit of Capex and now these are last year and the and also this year are the key years in which we're building that so I think it's prudent to expect that that will be more or less at the same level I'm guessing. The question is also in what regions are you interesting. Okay, Oh, it's everywhere so of.

Speaker Change: That would be my expectation. So, you know, as we mentioned before, we are really building capacity against the targets that we've communicated before. By 2025, 2026, we want to be able to do 90 EUV and 600 DPV. And in the mid-term, we're looking at 20 high NA. So that's a big jump. And, of course, that requires quite a bit of CAPEX. And, you know, last year and also this year are the key years in which we're building this. So I think it's prudent to expect that it will be more or less at the same level. I'm guessing the question is also, in what regions are you investing in CAPEX? Oh, it's everywhere. So, of course, the lion's share of investments is here because this is where most of the manufacturing happens.

Monique Mols: Yeah. I'm guessing the question is also in what regions are you investing in CapEx?

Speaker Change: Your CAPEX plan in 2024 compared to 2023, where does it go? The CAPEX plan, I think that will be sort of in line with what we had in 2023. That would be my expectation.

Roger Dassen: Oh, it's everywhere. Of course, the lion's share of investments is here, because this is where most of the manufacturing happens.

Speaker Change: Quarters, the lion's share of investments is here because this is where most of it in manufacturing and it happens, but you know we're also investing in the United States. We're investing in Korea, we're investing in it and in Taiwan I mean, those are the places where we have the highest investments some in China. So we are investing across.

Monique Mols: Mm-hmm.

Roger Dassen: You know, we're also investing in the United States. We're investing in Korea, we're investing in Taiwan. I mean, those are the places where we have the highest investments. Some in China.

Speaker Change: So, you know, as we mentioned before, we are really building capacity against the targets that we've communicated before. By 2025, 2026, we want to be able to do 90 EUV and 600 DPV, and midterm, we're looking at 20 INA. So that's a big jump.

Monique Mols: Yeah.

Roger Dassen: you know, we are investing, you know, across the globe.

Monique Mols: Yep. Thank you. Anyone here? Yeah. Paul.

Speaker Change: Across the globe Yep. Thank you.

Speaker Change: Anyone here?

Speaker Change: Anyone here.

Speaker Change: Yeah.

Speaker Change: Ball

Speaker Change: Paul.

Paul van Gerven: Paul van Gerven from Bits&Chips. Can you comment on the High-NA order intake, please?

Speaker Change: Bob O'hare Furbished chips can you comment on the year high in a order intake. Please.

Speaker Change: But, you know, we're also investing in the United States. We're investing in Korea. We're investing in Taiwan. I mean, those are the places where we have the highest investments, some in China. So, you know, we are investing. And, you know, across the globe. Thank you. Anyone here? Yeah. Ball, Yeah, on high NA, we've never quantified that because our customers don't want us to do that because they believe high NA is so critical and strategic to them that they don't want to, you know, give away to the very small world in which they operate what the order profile is. But, you know, we did say that we had multiple high NA orders in the order intake for the last quarter, so it's a healthy journey.

Speaker Change: And of course, that requires quite a bit of CAPEX. And, you know, last year and also this year are the key years in which we're building that. So I think it's prudent to expect that that will be more or less at the same level. I'm guessing the question is also, in what regions are you investing in CAPEX? Oh, it's everywhere.

Roger Dassen: Yeah. On High-NA, we've never quantified that because our customers don't want us to do that, because they believe High-NA is so critical and strategic to them that they don't wanna, you know, give away to the very small world in which they operate what the order profile is. You know, we did say that we had multiple High-NA orders in the order intake for the last quarter. It's a healthy journey. We're happy with what's going on there. We communicated a couple of quarters ago that we were in double-digit territory in terms of orders that we had there. Of course, we added a couple thereafter. That gives you a bit of a perspective.

Speaker Change: Yeah on high and a we've we've never we've never quantified that because our customers don't want us to do that because they believe heinie is so critical and strategic to them. They don't want to give away too to the very small world in which they operate and what the what the order profile of what he order profile is but you know we did say that said that we had.

Speaker Change: Yeah, on high NA, we've never quantified that because our customers don't want us to do that because they believe high NA is so critical and strategic to them that they don't want to, you know, give away to the very small world in which they operate what the order profile is. But, you know, we did say that we had multiple high NA orders in the order intake for the last quarter, so it's a healthy journey. We're happy with what's going on there. We communicated a couple of quarters ago that we were in double-digit territory in terms of orders that we had there, and, of course, we added a couple thereafter, so that gives you a bit of a perspective. So, healthy, in line with our expectations, but we cannot put a definitive number on it. But it's nicely supporting our 25 and 26, you know, build plans, so, yeah, we're happy.

Speaker Change: So, of course, the lion's share of investments is here because this is where most of the manufacturing happens. But, you know, we're also investing in the United States. We're investing in Korea. We're investing in Taiwan. I mean, those are the places where we have the highest investments in China.

Speaker Change: Multiple high any orders in the order intake for the last quarter. So it's a healthy journey. We're happy we're happy with what's going on there we communicated a couple of quarters ago that we were in double digit territory in terms of the orders that we had there and of course, we added we added a couple thereafter, so that gives you a bit of a bit of a perspective, so a healthy in line with our X.

Roger Dassen: Healthy, in line with our expectations, but we cannot put a definitive number on it.

Speaker Change: The patients and that's a we cannot put a definitive number on it but it.

Peter Wennink: It's nicely supporting our 2025 and 2026.

Speaker Change: If it is nicely supporting our 25 and 26.

Roger Dassen: Absolutely. Yep.

Speaker Change: So, you know, we are investing, you know, across the globe. Yeah. Thank you. Anyone here? Yeah. Paul Vergeer, Forbidden Chips.

Peter Wennink: you know, build plan. Yeah, we're happy.

Speaker Change: We're happy with what's going on there. We communicated a couple of quarters ago that we were in double-digit territory in terms of orders that we had there, and, of course, we added a couple thereafter, so that gives you a bit of a perspective. So, healthy, in line with our expectations, but we cannot put a definitive number on it. But it's nicely supporting our 25 and 26, you know, build plans, so, yeah, we're happy. And Peter, do you think Europe should follow Japan's example in establishing leading-edge manufacturing capacity of its own? Absolutely. You know I think you have two initiatives. We have an initiative; particularly in Germany, two major semiconductor makers have been very clear about their plans to establish semiconductor manufacturing.

Speaker Change: And I'll build fan so yeah.

Speaker Change: Where we're happy.

Monique Mols: Okay.

Paul van Gerven: Peter, do you think Europe should follow Japan's example in establishing leading-edge manufacturing capacity of its own?

Speaker Change: And Peter, do you think Europe should follow Japan's example in establishing leading-edge manufacturing capacity of its own?

Speaker Change: Okay, and Peter do you think Europe should follow.

Paul Vergeer: Can you comment on the high N.A. order intake, please? Yeah, on HiNA, we've never quantified that because our customers don't want us to do that, because they believe HiNA is so critical and strategic to them that they don't want to, you know, give away to the very small world in which they operate what the order profile is. But, you know, we did say that we had multiple HiNA orders in the order intake for the last quarter. So it's a healthy journey.

Peter Hecht: Japan's example, in establishing leading etch manufacturing capacity overdrawn.

Peter Wennink: Absolutely. You know, I think you have two initiatives. You know, we have initiatives and particularly in Germany, two major semiconductor makers are there that have been very clear about their plans to, you know, establish semiconductor manufacturing. I think it's needed. You know, there's a concern by a lot of people that said basically all these incentive programs, they will create this big overcapacity because all, you know, capacity will be built in all places in Europe, in Japan, as we just discussed, in China, in Korea, and in the United States.

Peter Hecht: Absolutely no I think.

Peter: Absolutely, you know I think

Peter Hecht:

Peter Hecht: You have two initiatives you know we have initiatives in <unk>.

Peter: You have two initiatives. We have an initiative, particularly in Germany, two major semiconductor makers have been very clear about their plans to establish semiconductor manufacturing.

Peter Hecht: Particularly in Germany to a major semi.

Peter Hecht: Because that could make us are there.

Peter Hecht: Be very clear about their plans to establish semiconductor manufacturing.

Paul Vergeer: We're happy with what's going on there. We communicated a couple of quarters ago that we were in double-digit territory in terms of orders that we had there. And, of course, we added a couple thereafter. So that gives you a bit of a perspective. It's healthy, in line with our expectations, but we cannot put a definitive number on it.

Peter: I think it's needed. There's a concern by a lot of people that basically all these incentive programs, they will create this big overcapacity because capacity will be built in all places in Europe, in Japan, as we just discussed, in China, in Korea, in the United States. But you have to realize that one of those charts, our industry, our customers industry is going to grow over one trillion by 2030.

Peter Hecht: I think it's a need it.

Peter Hecht: So there's a concern.

Peter Hecht: By a lot of people said basically all these incentive programs they will create as big overcapacity because of all of our capacity will be built in all places in Europe and in Japan, as we just discussed and in China, and Korea, and the United States, but you have to realize that.

Peter Wennink: You have to realize that while one of those charts, if our industry, our customers' industry, is going to grow over $1 trillion by 2030, it took us 40 years to build the capacity to do $550 billion, then we only have less than 10 years to do another step up and doubling it again. Trust me, we need that capacity. If that capacity is only concentrated then in only one or two places on the planet, you get a level of dependency that people after COVID realize is not healthy. I think we need to do that, yeah?

Peter: I think it's needed. There's a concern by a lot of people that basically all these incentive programs will create this big overcapacity because capacity will be built in all places in Europe, in Japan, as we just discussed, in China, in Korea, in the United States. But you have to realize that one of those charts, our industry, our customers' industry, is going to grow over one trillion by 2030. It took us 40 years to build the capacity to do 550 billion. Then we only have less than 10 years to do another step up and double it again. Trust me; we need that capacity. And if that capacity is only concentrated then in only one or two places on the planet, you get a level of dependency that people after COVID realize is not healthy.

Paul Vergeer: But it's nicely supporting our 25 and 26, you know, build plan. So, yeah, we're happy. And Peter, do you think Europe should follow Japan's example in establishing leading-edge manufacturing capacity of its own? Absolutely.

Peter Hecht: While no one of those charts, a rig on our industry our customers industry is going to grow over one trillion by 2030.

Peter: It took us 40 years to build the capacity to do 550 billion.

Peter Hecht: It took us 40 years to build the capacity to do 550 billion.

Peter: Then we only have less than 10 years to do another step up and doubling it again.

Peter Hecht: Then we only have less than 10 years to do another step up and doubling it again.

Peter: Trust me, we need that capacity.

Peter Hecht: Trust me, we need that capacity and it is capacity is only concentrated than in only one or two places on the planet you get a level of dependency that people. After COVID-19 realize there's not enough there's not healthy so I think we need to do that yeah.

Peter: And if that capacity is only concentrated then in only one or two places on the planet, you get a level of dependency that people after COVID realize is not healthy.

Peter Haak: Now, I think... You have two initiatives, you know; we have an initiative, particularly in Germany, where two major semiconductor makers are there and have been very clear about their plans to, you know, establish semiconductor manufacturing. I think it's needed, you know, there's a concern by a lot of people that basically all these incentive programs will create this big overcapacity because capacity will be built in all places in Europe, in Japan, as we just discussed, in China, in Korea, in the United States. But you have to realize that, well, not one of those jobs if we keep going. Our industry, our customer's industry, is going to grow over one trillion dollars by 2030. It took us 40 years to build the capacity to do 550 billion.

Peter Wennink: We also need to do it, going back to one of my other slides, not only on the connectivity part, on the high-end stuff, but we have to do it also on the mature side, yeah? The mature and the mid-critical, 'cause that's where the volume goes, yeah? If you take an electric vehicle, a handful of very advanced chips, hundreds of chips that are more of the mature nature. That's more silicon, yeah? I think this is where we've always said this, you know, as you might have known, we issued a white paper just before the presentation of the draft EU Chips Act, where we made that point, is that you cannot only focus on leading edge.

And but we also need to do it going back to one of our oldest lives is not only on the connectivity part on the on the high end stuff, but we have to do it also on the mature side yeah. The mature in the midst critical because that's where the volume goes yeah you.

Peter Hecht: If you take an electrical vehicle the handful of very advanced chips.

Peter: hundreds hundreds of chips that are more of the mature nature that's more silicon yeah so i think this is where if i was we've always said this you know we if you might know we issued a white paper just before the um

Peter Hecht: Hundreds hundreds of chips that are more of the mature nature, that's more silicon.

Peter: So I think we need to do that, but we also need to do it, going back to one of my other slides, is not only on the connectivity part, on the high-end stuff, but we have to do it also on the mature side, the mature and the mid-critical, because that's where the volume goes. If you take an electrical vehicle, a handful of very advanced chips, hundreds hundreds of chips that are more of the mature nature that's more silicon yeah so i think this is where if i was we've always said this you know we if you might know we issued a white paper just before the um, The presentation of the draft EU CHIPS Act, where we made that point is that you cannot only focus on leading edge, you have to also focus on a matured chip, because those are the engines, the workhorses of these major transitions.

Peter Hecht: So I think this is where.

Peter Hecht: We've always said this we've if you might've know we issued a white paper just before the year.

Peter Hecht: The presentation of the draft EU Chips Act, we made that point is that you cannot only focus on leading edge you have to also focus on the Georgia because those are the engines. The work horses of these major transitions.

Peter: The presentation of the draft EU CHIPS Act, where we made that point is that you cannot only focus on leading edge, you have to also focus on a matured chip, because those are the engines, the workhorses of these major transitions.

Peter Wennink: You have to also focus on the mature chip 'cause those are the engines, the workhorses of these major transitions, yeah? Of course, it all ends in high power compute and access to data, very fast access to data, high bandwidth memory. Yes, yes, yes. All true, yeah? It's combined. It's an ecosystem. You cannot do one without the other. This is where I think that's what governments need to realize, and Europe is not alone in that. I think there are more governments around the globe that are focusing solely on advanced chip manufacturing. While I think real issues are going to pop up in the mature space, and that's where Europe should also invest.

Peter Haak: Then we only have less than 10 years to do another step up and double it again. Trust me, we need that capacity. And if the capacity is only concentrated then in only one or two places on the planet, you get a level of dependency that people after COVID realize is not healthy.

Peter: And of course it all ends in high power compute and access to data, very fast access to data, high bandwidth memory, yes, yes, yes, yes, all true, but it's combined, it's an ecosystem, you cannot do one without the other, and this is where, I think that's what governments need to realize, and Europe is not alone in that, I think there are more governments around the globe that are focusing solely on advanced chip manufacturing, while I think real issues are going to pop up in the majority.

Peter Hecht: And of course, it all ends in high power compute and access to data very fast access to data high bandwidth memory, yes, yes, yes, that's all true yeah, but it's combined it's an ecosystem you cannot do one without the other and this is where I think that's what governments need to realize in the Europe is not alone in that I think there are more governments around the globe.

Peter Haak: So I think we need to do that, but we also need to do it, going back to one of my other slides, not only on the connectivity part, on the high-end stuff, but we have to do it also on the mature side, the mature and the mid-critical, because that's where the volume goes. If you take an electrical vehicle, a handful of very advanced chips, hundreds of chips that are more of a mature nature, that's more silicon, yeah, so I think this is where we've always said this, you know. We've, you might know, we issued a white paper just before the presentation of the draft EU CHIPS Act made the point that you cannot only focus on the leading edge; you have to also focus on mature chips because those are And, of course, it all ends with high power computing and access to data, very fast access to data, and high bandwidth memory. Yes, yes, yes, yes. It's all true. Yeah, But it's all combined. It's an ecosystem. You cannot do one without the other.

That are focusing solely on advanced chip manufacturing, while I think real issues are going to pop up in the mature space.

Peter: And of course, it all ends in high-power compute and access to data, very fast access to data, high-bandwidth memory, yes, yes, yes, all true, but it's combined, it's an ecosystem, you cannot do one without the other, and this is where governments need to realize, and Europe is not alone in that. I think there are more governments around the globe that are focusing solely on advanced chip manufacturing, while I think real And that's where Europe should also be.

Peter: And that's where Europe should also be.

Peter Hecht: And that's why you have should also invest.

Monique Mols: Okay. Let's go to a question online. Kunal Kamal from Mergermarket. I think this is for you, surprisingly the question is on M&A. With the semiconductor landscape undergoing significant changes and given the company's strong cash position, are there any regions or technologies where ASML sees strategic opportunities for M&As or joint ventures to support its technology portfolio and/or to expand capacity? And would you be looking at other partnerships like the one you announced with Samsung in December?

Peter: Okay.

Peter Hecht: Okay.

Speaker Change: Let's go to a question online. Kunal Kamal from Merger Market. I think this is for you. Surprisingly, the question is on M&A. With the semiconductor landscape undergoing significant changes and given the company's strong cash position, are there any regions or technologies where ASML sees strategic opportunities for M&As or joint ventures to support its technology portfolio and or to expand capacity? And would you be looking at other partnerships like the one you announced with Samsung in December?

Speaker Change: Let's go to a question online at Cornell come all from Mergermarket.

Speaker Change: I think this is for you.

Speaker Change: Surprisingly the question is on M&A.

Speaker Change: With the semiconductor landscape undergoing significant changes and given the company's strong cash position are there any regions or technologies, where asml's see strategic opportunities for M&A or joint ventures to support his technology portfolio and or to expand capacity and would you be looking at other partnerships like the one you announced with Samsung.

Speaker Change: Okay. Let's go to a question online. Kunal Kamal from Merger Market. I think this is for you. Surprisingly, the question is on M&A. With the semiconductor landscape undergoing significant changes and given the company's strong cash position, are there any regions or technologies where ASML sees strategic opportunities for M&As or joint ventures to support its technology portfolio and or to expand capacity? And would you be looking at other partnerships like the one you announced with Samsung in December? That's a very broad question, but in general... Why don't you explain our M&A strategy? Exactly. Why don't I do that in detail?

Speaker Change: In December.

Roger Dassen: That's a very broad question.

Speaker Change: That's a very broad question, but in general... Why don't you explain our M&A strategy? Exactly. Why don't I do that in detail? So bottom line, and I think that's consistent with also what we said at the Capital Market Day, if you look at the opportunities that ASML has ahead of it, it's phenomenal, right? If you're looking at the $44 to $60 billion that we said we believe is possible in the 2030 timeframe, it tells you that we have a lot of opportunity that we see for ourselves in our current market. And we also believe there's still a lot to be done, because in order for that to be successful, we have to build capacity. In order for that to be successful, we have to make sure that high M&A is up and running. And we think that, you know, the company is best off, and we think our stakeholders are best off if we really focus on that. So that's, you know, the emphasis, I would say, for the foreseeable future. Never say never, right? I mean, obviously, there could be a point in time where you're going to say, now we have more capacity to look at other product market companies. We're going to look at other nations. But for now, we believe the opportunity that we have ahead of us is still so phenomenal that there is no action required on that front. That said, you know, we are very active in partnerships. We are very active in partnerships with our customers. And indeed, you know, Samsung is a great example of that. And, you know, we have a very specific one there. But I can tell you, with all of our customers, we have very intense collaboration. And we double down on those efforts to make them successful, because that's, I think, what it ultimately boils down to. We have very significant initiatives. We have very significant initiatives within our ecosystem with universities, et cetera, to develop stuff. So we do a lot on that front. And finally, you know, on the supply chain. And there, I think, again, very consistent with what we've done in the past. We're very happy, you know, with a supply chain that is so dedicated to our ecosystem that works really well for us. The last thing we want to do is buy up all of those suppliers, make them part of ASML. I think the model we have today works extremely well. We have a level of focus and dedication in our supply chain and professionalism in our supply chain that I think is unique. We would only do an acquisition in the supply chain if we really feel that there is a supplier out there that cannot keep pace with what we do. And if that's the case, if we see a supplier that is critical to what we do, but for whatever reason they cannot make the commitments that we require, then we make an investment.

Speaker Change: That's a very broad question, but in general why don't you explain our M&A strategy exactly what might have to do that and in detail.

Monique Mols: Yeah.

Roger Dassen: in general.

Peter Wennink: Why don't you explain our M&A strategy?

Roger Dassen: Exactly. Why don't I do that in detail. Bottom line, and I think that's consistent with also what we said at the Capital Markets Day. If you look at the opportunities that ASML has ahead of it's phenomenal, right? If you're looking at the EUR 44 to 60 billion that we've said we believe is possible in the 2030 timeframe, it tells you that we have a lot of opportunity that we see for ourselves in our current market. We also believe there's still a lot to be done, because in order for that to be successful, we have to build capacity. In order for that to be successful, we have to make sure that High NA is up and running.

Speaker Change: So bottom line and I think that's consistent with also what we said at the at our capital markets Day. If you look at the opportunities that ASML has ahead of it is phenomenal right. If you're looking at the 44 to <unk> 60 billion that we've that we said we believe is possible in the end of 2030 timeframe. It tells you that we have a lot of opportunity that we see for ourselves in our currently in our current market.

Peter Haak: And this is where I think that's what governments need to realize, and Europe is not alone in that. I think there are more governments around the globe that are focusing solely on advanced chip manufacturing. However, I think real issues are going to pop up in the near future. And that's why Europe should also... OK. Let's go to a question online. Kunal Kamal from Merger Market, I think this is for you. Surprisingly, the question is on M&A. With the semiconductor landscape undergoing significant changes and given the company's strong cash position, are there any regions or technologies where ASML sees strategic opportunities for M&As or joint ventures to support its technology portfolio or to expand capacity?

Speaker Change: And we also believe there is still a lot to be done because in order for that to be successful we have to build capacity in order for that to be successful we have to make sure the tiniest up and running and we think that you know the company is best off and we think our stakeholders are best off if we really focus on that so that's the emphasis I would say for the foreseeable future never say never.

Speaker Change: So bottom line, and I think that's consistent with also what we said at Capital Market Day, if you look at the opportunities that ASML has ahead of it, it's phenomenal, right? If you're looking at the $44 to $60 billion that we said we believe is possible in the 2030 timeframe, it tells you that we have a lot of opportunities that we see for ourselves in our current market. And we also believe there's still a lot to be done, because in order for that to be successful, we have to build capacity. We have to make sure that high M&A is up and running. And we think that, you know, the company is best off, and we think our stakeholders are best off if we really focus on that. So that's, you know, the emphasis, I would say, for the foreseeable future. Never say never, right? I mean, obviously, there could be a point in time where you're going to say, now we have more capacity to look at other product market companies. We're going to look at other countries.

Roger Dassen: We think that, you know, the company is best off, and we think our stakeholders are best off if we really focus on that. That's, you know, the emphasis I would say for the foreseeable future. Never say never, right? I mean, obviously there could be a point in time where you're gonna say, "Now we have more capacity to look at other product market combinations." For now we believe the opportunity that we have ahead of us is still so phenomenal that there is no action required on that front. That said, you know, we are very active in partnerships. We are very active in partnerships with our customers, and indeed, you know, Samsung is a great example of that.

Speaker Change: Right I mean, obviously, there could be a point in time, where you're going to say now we have more capacity to two to look at it to look at at other product market combinations, but for now we believe the opportunity that we have ahead of US is still so phenomenal that there is no action that required in that on that front that said you know we are very active in partnerships we have.

Speaker Change: And would you be looking at other partnerships like the one you announced with Samsung in December? That's a very broad question, but in general... Why don't you explain our M&A strategy?

Speaker Change: Very active in partnerships with our customers and indeed, you know Samsung is a great example of that and you know we have a very specific one there, but I can tell you with all of our customers. We have very intense collaboration and we double down on those efforts to make them successful because that that's I think what it ultimately boils down to we have very significant initiatives within our ecosystem with University.

Roger Dassen: You know, we have a very specific one there. But I can tell you with all of our customers, we have very intense collaboration, and we double down on those efforts to make them successful, 'cause that's I think what it ultimately boils down to. We have very significant initiatives within our ecosystem with universities, et cetera, to develop stuff. We do a lot on that front. Finally, you know, on the supply chain, and there I think again, very consistent with what we've done in the past. We're very happy, you know, with a supply chain that is so dedicated to our ecosystem that works really well for us. The last thing we wanna do is buy up all of those suppliers, make them part of ASML.

Speaker Change: In detail, and I think that's consistent with also what we said at Capital Markets Day, if you look at the opportunities that ASML has ahead of it, it's phenomenal, right? If you're looking at the $44 to $60 billion that we said we believed was possible in the 2030 timeframe, it tells you that we have a lot of opportunity that we see for ourselves in our current market. But we also believe there's still a lot to be done, because in order for that to be successful, we have to build capacity. In order for that to be successful, we have to make sure that high M&A is up and running. And we think that the company is best off, and we think our stakeholders are best off, if we really focus on that. So that's the emphasis, I would say, for the foreseeable future. Never say never, right?

Speaker Change: But for now, we believe that the opportunity that we have ahead of us is still so phenomenal that there is no action required on that front.

Speaker Change: His et cetera to develop stuff. So we do a lot of debt on that on that front.

Speaker Change: That said, you know, we are very active in partnerships.

Speaker Change: And finally, you know on the on this on the supply chain and Dara. Thank you again very consistent with what we've done in the past we're very happy.

Speaker Change: We are very active in partnerships with our customers. And, indeed, you know, Samsung is a great example of that. And, you know, we have a very specific one there. But I can tell you, with all of our customers, we have very intense collaboration. And we double down on those efforts to make them successful, because that's, I think, what it ultimately boils down to. We have very significant initiatives.

Speaker Change: With it with a supply chain that is so dedicated to our ecosystem that works really well for us. The last thing we want to do is buy up all of those suppliers make them part of ASML I think the model. We have today works extremely well, we have a lot of that level of focus and dedication and our supply chain and professionalism in our supply chain. The other thing is is unique we would only.

Roger Dassen: I think the model we have today works extremely well. We have a level of focus and dedication in our supply chain and professionalism in our supply chain that I think is unique. We would only do an acquisition in the supply chain if we really feel that there is a supplier out there that cannot keep pace with what we do. If that's the case, if we see a supplier that is critical to what we do, but for whatever reason they cannot make the commitments that we require, then we make an investment. Yeah.

Speaker Change: I mean, obviously, there could be a point in time where you're going to say, now we have more capacity to look at other product market combinations. But for now, we believe the opportunity that we have ahead of us is still so phenomenal that there is no action required on that front. That said, we are very active in partnerships with our customers. And indeed, Samsung is a great example of that. And we have a very specific one here.

Speaker Change: To do an acquisition in the supply chain, if we really feel that there is a supplier out there that cannot keep pace with what we do and if that's the case if we see a supplier that is critical to what we do but for whatever reason they cannot make the commitments that we require than weird then we make an investment.

Speaker Change: We have very significant initiatives within our ecosystem with universities, et cetera, to develop stuff. So we do a lot on that front. And finally, you know, on the supply chain. And there, I think, again, very consistent with what we've done in the past. We're very happy, you know, with a supply chain that is so dedicated to our ecosystem that works really well for us. The last thing we want to do is buy up all of those suppliers and make them part of ASML.

Monique Mols: Thank you. Questions in the room? 'Cause I have some more on my iPad. Yeah. Okay.

Monique Mols: Thank you. Questions in the room? Cause I have some more on my iPad. Yeah. Okay.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Questions in the room? Because I have some more on my iPad. Yeah, okay. ASML has been pushing at the boundaries of Moore's Law for decades. When do you see Moore's Law sort of expiring?

Speaker Change: Questions in the room, because I have some more on my iPad. Yeah. Okay is the mill has been pushing at the boundaries of Moore's law for decades.

Sarah Jacob: ASML has been pushing at the boundaries of Moore's Law for decades. When do you see Moore's Law sort of expiring?

Speaker Change: When do you see Moore's laws that are expiring.

Speaker Change: But I can tell you that with all of our customers, we have very intense collaboration, and we double down on those efforts to make them successful because that's, I think, what it ultimately boils down to. We have very significant initiatives within our ecosystem, with universities, et cetera, to develop stuff. So we do a lot on that front. And finally, on the supply chain. And there, I think, again, very consistent with what we've done in the past. We're very happy with a supply chain that is so dedicated to our ecosystem that works really well for us. The last thing we want to do is buy up all of those suppliers and make them part of ASML. I think the model we have today works extremely well.

Peter Wennink: Yeah. I think, yeah, Moore's Law said earlier. I think it's an empirical law of economics. It will slow down when it doesn't make sense to create this next transistor or function, whereby the value of the transistor or the function is the same or lower as the cost. Then you stop. The value of the transistor or the function is not only driven by lithography. It's one of the scaling engines. Very important scaling engines are system integration, system architecture, material choices, that altogether creates this ability to keep scaling. Yeah? That together is what you do with the customer. I think and with our peers.

Speaker Change: Yeah, I think, Morse law said it earlier, I think it's an empirical law of economics, so it will slow down when it doesn't make sense to create this next transistor or function whereby the value of the transistor of the function,

Yeah, I think what was said earlier I think it's an empirical of economics. So.

Speaker Change: I think the model we have today works extremely well.

Speaker Change: It will slow down when it doesn't make sense to create this next transistor a function whereby the value of the transition of the function.

Speaker Change: We have a level of focus and dedication in our supply chain and professionalism in our supply chain that I think is unique.

Speaker Change: is

Speaker Change: Yes.

Speaker Change: The same or lowers the cost may you stop.

Speaker Change: The same or lower is the cost.

Speaker Change: May you stop.

And the value of the transistor or dysfunction is not only driven by lithography. It's one of the scaling engines, but very important scaling engines, our system integration system architecture material choices that all together creates this ability to keep scaling.

Speaker Change: and and the value of the transistor or the function is not only driven by lithography it's one of the scaling engines but very important scaling engines are system integration system architecture material choices that all together creates this ability to keep scaling and that together is what you do with the custom custom

Speaker Change: We would only do an acquisition in the supply chain if we really feel that there is a supplier out there that cannot keep pace with what we do. And if that's the case, if we see a supplier that is critical to what we do, but for whatever reason, they cannot make the commitments that we require, then we make an investment.

Speaker Change: Thank you.

Speaker Change: Questions in the room?

Speaker Change: Because I have some more on my iPad. Yeah, okay. ASML has been pushing at the boundaries of Moore's Law for decades.

Speaker Change: And that together is what you do with the customer.

Speaker Change: So, I think, and with our peers. So, if we and our peers and the customers

Speaker Change: So I think and we're up here, so if we and our peers and the customer.

Peter Wennink: If we and our peers and the customer come to the conclusion that the added value, that the incremental value of the next generation of transistor or function in the chip is not going to cover the cost, it stops. We're very far from this. It's the combination of all of it that at least we think for the next decades, we will see Moore's Law continuing because it's a combination of everything. I think when we talk to our customers, we see this value accretion per transistor or per function of the chip still higher than the cost. That's our challenge. That's the challenge that we have together with our peers to manage that cost. Yeah?

Speaker Change: Come to the conclusion that the added value, that the incremental value of the next generation of transistor or function in the chip is not going to cover the cost. It stops.

Speaker Change: When do you see Moore's Law sort of expiring? Yeah, I think Morse said it earlier. I think it's an empirical law of economics, so it will slow down when it doesn't make sense to create this next transistor or function whereby the value of the transistor of the function is the same or lower than the cost.

Speaker Change: Come to the conclusion that the added value that the incremental value of the next generation of transistor or function in the chip is not going to cover the governor cost its thoughts we're very far from this so it's the combination of all of it that at least we think.

Speaker Change: We have a level of focus and dedication in our supply chain and professionalism in our supply chain that I think is unique. We would only do an acquisition in the supply chain if we really feel that there is a supplier out there that cannot keep pace with what we do. And if that's the case, if we see a supplier that is critical to what we do but, for whatever reason, they cannot make the commitments that we require, then we make an investment. Thank you. Questions in the room?

Speaker Change: We're very far.

Speaker Change: So it's the combination of all of it that at least we think, for the next couple of years,

Speaker Change: May you stop, and the value of the transistor or the function is not only driven by lithography. It's one of the scaling engines, but other very important scaling engines are system integration, system architecture, and material choices that all together create this ability to keep scaling, and that together is what you do with the custom, custom So, I think, and with our peers. So, if we and our peers and our customers come to the conclusion that the added value, the incremental value of the next generation of transistors or function in the chip is not going to cover the cost. It stops. We're still very far. So it's the combination of all of it that, at least we think, for the next couple of years, for decades, we will see Morse law continuing because it's a combination of everything.

Speaker Change: Decades, we will see Moore's law, continuing because it's a combination of everything and I think when we talk to our customers. We see this value accretion per transistor or a function of the chip still higher than the cost, but that's our challenge. That's the challenge that we have together with our peers to do Matt.

Speaker Change: For decades, we will see Morse law continuing because it's a combination of everything. And I think when we talk to our customers, we see this value accretion per transistor or per function of the chip still higher than the cost. But that's our challenge. That's the challenge that we have together with our peers to manage that cost.

Speaker Change: Because I have some more on my iPad, yeah, okay. ASML has been pushing at the boundaries of Moore's Law for decades. When do you see Moore's Law sort of expiring? Yeah, I think Moore said it earlier. I think it's an empirical law of economics. So it will slow down when it doesn't make sense to create this next transistor or function, whereby the value of the transistor of the function, Peace, is the same or lower as the cost. May you stop, and the value of the transistor or the function is not only driven by lithography; it's one of the scaling engines. The other very important scaling engines are system integration, system architecture, and material choices that all together create this ability to keep scaling, and that together is what you do with the customer, and with our peers and with our customers. So if we and our peers and our customers come to the conclusion that the added value, the incremental value of It stops.

Speaker Change: <unk> death cost.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Yeah.

Monique Mols: Okay, let's go to Asia again. Peilin Liu from Caixin Media. I think it's a clarifying question. The new message is that you are now expecting for a handful of fabs not to get export licenses for China for the NXT:1970i. In last quarter's conference call, you didn't mention anything about the NXT:1970i. How does it happen? And then a follow-up question, which we also got from Tess Hoske from NU.nl. Will we see more models banned in the future?

Speaker Change: Okay, let's go to Asia again. Pei-Lin Liu from Cakes in Media. The new message is that, I think it's a clarifying question, the new message is that you are now expecting for a handful of fabs not to get export licenses for China for the 1970. In last quarter's conference call, you didn't mention anything about the 1970. How does it happen? And then a follow-up question, which we also got from Thijs Roske from NU.nl. Will we see more models banned in the future? Well, you know, just a confirmation, yes, it's the 1970, 1980. There's not a big difference between the two, so you can mention a win, you know, in one sentence. I think that was the... So, yes, I mean, that was indeed also for this handful of fabs that cannot access... U.S. rules, yeah. And for the rest, you know, I'm the last person that's going to speculate on any additional, you know, export control rules, but we have to realize that

Speaker Change: Okay, Let's go to Asia again, tailing you from kicks in media.

Speaker Change: The new message isn't it so thanks for clarifying question add a new message did you are now expecting for a handful of fabs not to get export licenses for China 40 1970.

Speaker Change: In last quarters Conference call you didn't mention anything about the 1970, how does it happen and then a follow up question, which we also got fantastic Oskar from newborn to now will we see more models band into future well you know, there's just a confirmation yes. Its a 90 70 90 17 1980, so not a big difference between the two so you can yeah.

Peter Wennink: Well, you know, just a confirmation. Yes, it's the TWINSCAN NXT:1970i-

Monique Mols: Yeah.

Peter Wennink: TWINSCAN NXT:1970i, TWINSCAN NXT:1980Di.

Speaker Change: And I think when we talk to our customers, we see this value accretion per transistor or per function of the chip still higher than the cost. But that's our challenge.

Monique Mols: Yeah.

Peter Wennink: big difference between the two, so you can-

Monique Mols: Yeah.

Peter Wennink: Mention them in, you know, in one sentence.

Speaker Change: When you know in one sense I think Atlas area says I mean that was indeed also for this handful of Fabs they cannot actually U S rules, and Florida restaurant and the last person who is going to speculate on the on any additional export cold-roll rules, but we have to realize that.

Monique Mols: Yeah. I think that was

Peter Wennink: Yes. I mean, that was indeed.

Monique Mols: Yeah.

Peter Wennink: Also for this handful of fabs, they cannot access.

Monique Mols: Yeah.

Peter Wennink: Also for this handful of fabs, they cannot access.

Speaker Change: That's the challenge that we have together with our peers to manage that cost. Yeah Okay, let's go to Asia again. Pei-Lin Liu from Cakes in Media. The new message is that, I think it's a clarifying question; the new message is that you are now expecting a handful of fabs not to get export licenses for China for the 1970s. In last quarter's conference call, you didn't mention anything about the 1970s. How does it happen? And then a follow-up question, which we also got from Thijs Roske from NU.nl. Will we see more models banned in the future? Well, you know, just a confirmation, yes, it's the 1970s and 1980s. There's not a big difference between the two, so you can mention a win, you know, in one sentence.

Monique Mols: US rules, yeah.

Peter Wennink: For the rest, you know, I'm the last person that's going to speculate on any additional, you know, export control rules. But we have to realize that, you know, export control rules as a mean to control national security interests, very valid, yeah? That's pretty normal, yeah? But where we are today is that when we have done that, and the rest is for mature and mid-critical chips, which we need for day-to-day life and for all these transitions that are coming, that's an economic-

Speaker Change: We're very far. So it's the combination of all of it that, at least, we think, for decades, we will see MOSLOC continuing because it's a combination of everything. And I think when we talk to our customers, we see this value accretion per transistor or per function of the chip still higher than the cost, but that's our challenge. That's the challenge that we have together with our peers to manage that cost. Okay, let's go to Asia again. Peilin Liu from Kexin Media.

Speaker Change: You know export control rules as a as a means to control national security interests very valid.

Speaker Change: you know export control rules as a as a mean to control national security interests very valid yeah that's that's pretty normal yeah and but where we are today is that when we have done that

Speaker Change: That's pretty normal.

Speaker Change: But where are we at today as I said, when we have done that and the rest is for mature in mid critical chips, which we need for day to day life of all these transitions datacom that's an economic.

Speaker Change: And the rest is for mature and mid-critical chips, which we need for day-to-day life and for all these transitions that are coming. That's an economic decision to actually help society and to actually solve these big problems. I think I would be of opinion that we should absolutely keep that open. We should just make sure that the world, if we want to grow to a semiconductor industry that's over a trillion dollars, because that's going to support all those major transitions, then we better make sure that there is enough capacity. Thank you very much. Thank you.

Monique Mols: Mm.

Peter Wennink: You know, decision to actually help society and to actually solve these big problems. I think, you know, I would be of opinion that we should absolutely keep that open. We should just make sure that the world, if we want to grow to a semiconductor industry that's over $1 trillion, you know, because that's going to support all those major transitions, then we better make sure that there is enough capacity. Thank you very much, you know.

Peilin Liu: The new message is that, I think it's a clarifying question. The new message is that you are now expecting a handful of fabs not to get export licenses for China for the 1970s. In last quarter's conference call, you didn't mention anything about the 1970s. How did that happen?

Speaker Change: And our decision to actually help society to actually solve these big problems. I think you know I would be of opinion that we should absolutely to keep that open we should just make sure that the world Yeah, if we want to too.

Speaker Change: Our growth rate.

Speaker Change: Two a semiconductor industry, there's over a trillion dollars because that's going to support all those major transitions then we better make sure that there is enough capacity. Thank you very much okay. Thank you.

Pei-Lin Liu: I think that was the best... So, yes, I mean, that was indeed also for this handful of fabs that cannot access... U.S. rules, yeah. And for the rest, you know, I'm the last person that's going to speculate on any additional export control rules, but we have to realize that export control rules as a means to control national security interests are very valid, yeah, that's pretty normal, and where we are today is that when we have done that, And the rest is for mature and mid-critical chips, which we need for day-to-day life and for all these transitions that are That's an economic decision to actually help society and actually solve these big problems.

Peilin Liu: And then a follow-up question, which we also got from Thijs Roske from NU.nl. Will we see more models banned in the future? Well, you know, this is just a confirmation. Yes, it's a 1970, 1970, 1980.

Monique Mols: Okay. Thank you. In the room, any questions? Yeah, Peter.

Speaker Change: In the room.

Speaker Change: In the room?

Speaker Change: Any questions?

Speaker Change: Any questions.

Speaker Change: Peter.

Speaker Change: Yes, Peter.

Speaker Change: Yeah.

Pieter Haeck: You mentioned in your presentation that you need that international population, international students coming to the Netherlands. How do you look upon the formation of the new Dutch government, which may not be very open to knowledge migration to the Netherlands?

Speaker Change: You mentioned in your presentation that you need that international population internal international students coming to the Netherlands, How do you look upon the formation of the new Dutch government, which may not be very open to NOLA.

Speaker Change: You mentioned in your presentation that you need that international population, international students coming to the Netherlands. How do you look upon the formation of the new Dutch government, which may not be very open to knowledge migration to the Netherlands? Yeah, well, I always say, you know, you should know what you wish for.

Peilin Liu: It's not a big difference between the two. So you can mention a win, you know, in one sentence. I think that was the...

Speaker Change: No rich migration to the moment, yeah, well I always say you know you should know what you wish for it.

Peter Wennink: Yeah. Well, I always say, you know, you should know what you wish for. If you, if you don't want this in the Netherlands, then you should accept the consequences. The consequences are, just to give you an example, 65% of all the international students in a technical university in Eindhoven lands in this region, the Brainport region. That is a very significant source of talent that we need to drive innovation. Well, this industry is not going to stop. We don't have $1 trillion-plus, yeah? We have to expand across the globe. We need to support it with R&D and with people and with innovation. If we cannot get the people here, we get the people somewhere else. It's very simple, yeah? We will go where we have access to the means to grow the company.

Peilin Liu: So yes, I mean, that was indeed also for this handful of fabs that they cannot access... The US rules, yeah. And for the rest, you know, I'm the last person that's going to speculate on any additional export control rules. But we have to realize that... Export control rules as a means to control national security interests, very valid, yeah, that's pretty normal, yeah, but where we are today is that when we have done that, And the rest is for mature and mid-critical chips, which we need for day-to-day life and for all these transition That's an economic decision to actually help society and actually solve these big problems.

Speaker Change: If you if you don't want this in the Netherlands and issued accept the consequences and the consequent Jerry just to give you. An example, 65% of all the international students in a technical University in Eindhoven lens in this region of the brain with rich and that is a very significant source of talent.

Speaker Change: So, if you don't want this in the Netherlands, then you should accept the consequences. And the consequences are, just to give you an example, 65% of all the international students in a technical university in Eindhoven lands in this region, the Breemboord region. That is a very significant source of talent that we need to drive innovation.

Pei-Lin Liu: I think I would be of the opinion that we should absolutely keep that open. We should just make sure that the world, if we want to grow to a semiconductor industry that's over a trillion dollars, because that's going to support all those major transitions, then we better make sure that there is enough capacity. Thank you very much. Thank you.

Speaker Change: That we need to drive innovation.

Speaker Change: Well, this industry is not going to stop.

Speaker Change: This industry is not going to stop.

Speaker Change: We're going to have one trillion plus, and we have to expand across the globe. We need to support it with R&D and with people and with innovation. We cannot get the people here.

Speaker Change: We don't have one trillion plus yeah, and we have to expand across the globe, we need to support it with R&D and with people and with innovation.

Speaker Change: We cannot get the people here.

Speaker Change: We get the people somewhere else.

Speaker Change: We get to people somewhere else.

Speaker Change: Any questions?

Speaker Change: It's very simple. We will go where we have access to the means to grow the company. If the network shuts down because we cannot get immigrants or foreign students, fine, you have to accept the consequence. You should know what you wish for.

Speaker Change: Yes, Peter. You mentioned in your presentation that you need that international population, international students coming to the Netherlands. How do you look upon the formation of the new Dutch government, which may not be very open to knowledge migration to the Netherlands? Yeah, well, I always say, you know, you should know what you wish for. So, if you don't want this in the Netherlands, then you should accept the consequences. And the consequences are, just to give you an example, 65% of all the international students at a technical university in Eindhoven land in this region, the Breemboord region. That is a very significant source of talent that we need to drive innovation.

Speaker Change: It's very simple we will go where we have access to the means to grow the company.

Peilin Liu: I think, you know, I would be of the opinion that we should absolutely keep that open. We should just make sure that the world, if we want to grow to a semiconductor industry that's over a trillion dollars, because that's going to support all those major transitions, then we better make sure that there is enough capacity. Thank you very much. OK, thank you. In the room?

Peter Wennink: If the Netherlands shuts down because we cannot get immigrants or foreign students, yeah? Fine, yeah. You have to accept the consequence. You should know what you wish for, yeah? We are a company. We're a global company, yeah? We will go where we need to go to make sure the company can grow and you know service our customers.

Speaker Change: The Netherlands shifts down because we cannot get immigrants or for foreign students.

Speaker Change: By now you have to accept the consequence, you should know what you wish for.

Speaker Change: We are a company. We're a global company. We will go where we need to go to make sure the company can grow and service our customers.

Speaker Change: So we are a company we're a global company, we will go where we need to go to make sure. The company can grow in and your service to our customers.

Speaker Change: Any questions? Yeah, Peter. You mentioned in your presentation that you need that international population, international students coming to the Netherlands. How do you view the formation of the new Dutch government, which may not be very open to knowledge migration to the Netherlands?

Monique Mols: Okay. Any questions here? We go back to my iPad. Again, L'Usine Nouvelle. You seem to be moving against the grain of the semiconductor market. The market was down. According to Gartner, that was -11% in 2023, and you end the year with a 30% jump. For 2024, the market is forecast to see strong growth, +17% according to Gartner, and you are counting on a flat turnover.

Speaker Change: Okay any questions here.

Speaker Change: Okay, any questions here?

Speaker Change: Then we go back to my iPad, again, Luzine Nouvel, you seem to be moving against the grain of the semiconductor market, the market was down, according to Gardiner, that was minus 11% in 23, and you end the year with a 30% jump, for 24, the market is forecast to see strong growth, plus 17%, according to Gardiner, and you are counting on a flat turnover, why this contrary development? That sounds intuitively, yes, but it was what Roger said, one, part of the 2023 sales is a catch-up of customers that you undershipped us more than 50%, so can you please give us the machines that you obviously reserved for all the customers, can you, you know, ship them to us, thank you.

Speaker Change: Then we go back to my left my iPad again, losing Nashville.

Speaker Change: Well, this industry is not going to stop. We're going to have one trillion plus, and we have to expand across the globe. We need to support it with R&D and with people and with innovation. We cannot get the people here.

Speaker Change: You seem to be moving against the grain of the semiconductor market. The market is down and according to Gartner was minus 11% in 'twenty three and you ended the year with a 30% jump for 'twenty for the market is forecast to see strong growth plus 17%. According to Gartner and Youre counting on a flat turnover why these contrary to sell.

Speaker Change: Yeah, well, I always say, you should know what you wish for. So if you don't want this in the Netherlands, then you should accept the consequences. And the consequences are, just to give you an example, 65% of all the international students at a technical university in Eindhoven land in this region, the Bremburg region.

Peter Wennink: Yeah.

Monique Mols: Why these contrary developments?

Peter Wennink: No, it's. Yeah, that sounds intuitive, yes, but it was. It's what Roger said.

Speaker Change: Yeah that sounds intuitively, yes, but it was what Rajiv said one.

Speaker Change: We get to people somewhere else.

Speaker Change: It's very simple.

Speaker Change: We will go where we have access to the means to grow the company.

Monique Mols: Right.

Peter Wennink: One, part of the 2023 sales is a catch-up of customers that, "You undershipped us more than 50 percent, so can you please give us the machines that you obviously reserved for other customers? Can you know, ship them to us? Thank you." These are very long lead time items, so they get the machines in 2023, so they have the capacity. That's why Roger said logic is a bit down probably this year because they're going to use that capacity. Don't need to invest twice. I would love them to invest twice. They're probably not going to do it, yeah? This is why there seems to be a contradiction. This is why if you chop up life in periods of 1 January to 31 December, you get these very strange views, yeah?

Speaker Change: That is a very significant source of talent that we need to drive innovation. Well, this industry is not going to stop. We ought to have one trillion plus, yes, and we have to expand across the globe. We need to support it with R&D and with people and with innovation. We cannot get the people here.

Speaker Change: Part of the 2023 sales is a catch up off of customer set you under shipped us more than 50%. So can you. Please give us the machines that you obviously reserves for all the customers okay.

Speaker Change: If the network shuts down because we cannot get immigrants or foreign students, fine; you have to accept the consequence. You should know what you wish for.

Speaker Change: We are a company. We're a global company.

Speaker Change: Shifting to us thank you.

Speaker Change: We will go where we need to go to make sure the company can grow and serve our customers. Okay, any questions here?

Speaker Change: And these are very long lead time items, so they get the machines in 2023.

Speaker Change: So they have the capacity. That's why Roger said logic is a bit down, probably this year, because they're going to use that capacity. They don't need to invest twice. I would love them to invest twice, but they're probably not going to do it. So this is why there seems to be a contradiction, but this is why if you chop up life in periods of January 1st to December 31st, you get these very strange views. This is why we look at 24-25 together, because it's a continuum, whereby long lead times of ASML, short lead times of our customers all play a role in how the dynamics within such a period actually happen. So it's not a contradiction. It's perfectly in line.

Speaker Change: Then we go back to my iPad, again, Luzine Nouvel, you seem to be moving against the grain of the semiconductor market; the market was down, according to Gardiner, that was minus 11% in 23, and you end the year with a 30% jump. For 24, the market is forecast to see strong growth, plus 17%, according to Gardiner, and you are counting on a flat turnover. Why this contrary development? That sounds intuitively, yes, but it was what Roger said, one. Part of the 2023 sales is a catch-up of customers that you undershipped by more than 50%, so can you please give us the machines that you have obviously reserved for all the customers, can you, you know, ship them to us? Thank you. And these are very long lead time items, so they will get the machines in 2023. So they have the capacity.

Speaker Change: So to have the capacity as Roget said logic is a bit down probably this year, because they're going to use that capacity you don't need to invest twice I would love them to invest wisely, but we're probably not going to do it. So this is why there seems to be a contradiction, but this is why if you chop up life in in in periods of January 1st of this through December 31st.

Speaker Change: We get the people somewhere else. It's very simple. We will go where we have access to the means to grow the company. If the Netherlands shuts down because we cannot get immigrants or foreign students, fine.

Speaker Change: These very strange views here is why we look at 'twenty four 'twenty five together because it's a continuum.

Peter Wennink: That's why we look at 2024, 2025 together, 'cause it's a continuum, yeah? Whereby long lead times of ASML, short lead times of our customers all play a role in how the dynamics within such a period actually happen. It's not a contradiction. It's perfectly in line.

Speaker Change: You have to accept the consequences. You should know what you wish for. We are a company. We're a global company. We will go where we need to go to make sure the company can grow and serve our customers. Okay, any questions here? Then we go back to my iPad again, Lusine Nouvelle. You seem to be moving against the grain of the semiconductor market. The market was down, according to Gardner; that was minus 11 percent in 23. And you end the year with a 30 percent jump for 24. The market is forecast to see strong growth plus 17 percent, according to Gardner. But you are counting on a flat turnover. Why this contrary development?

Speaker Change: Whereby long lead times of ASML shortly in terms of our customers all play a role in how the dynamics within such a period actually happen. So it's not a contradiction is perfectly in line yep.

Monique Mols: Yep. Okay. I have one more question on my iPad, but we already covered that. If there's nothing else here, then I have one more slide for you, which is thank you. Thank you for being here. Thank you, Roger, for again explaining the figures so well and make them come alive.

Speaker Change: Yep.

Speaker Change: Okay I have one more question on my iPad, but we already cover that.

Speaker Change: Okay, I have one more question on my iPad, but we already covered that.

Speaker Change: So if there's nothing else here, then I have one more slide for you, which is thank you. Thank you for being here. Thank you, Roger, for again explaining the figures so well and make them come alive. And a really big thank you, Peter. This is our last press conference together in January. You'll be here for the next coming months, and I'm sure you're not going to slow down. But I just want to thank you here for all the times you were here to talk to everyone and taking the time for interviews. It's been a pleasure and a privilege to work with you on this way. Thank you. Here, here. Thank you. On my side. It's an absolute pleasure to work all these years with ASML. I mean, I got a question on one of the interviews. I said, how do you feel? I said, it's a bit sweet and sour. You know, the sweetness is to see where the company is and to see what we've done. And the sour part is that, you know, you have to say goodbye, which, you know, is logical. Not yet, huh? You're still here until April 24th. Not yet, but I'll tell you. I got the confirmation this week that my state pension, the average state pension, we'll start on June 1st.

Speaker Change: So if there's nothing else here, then I have one more slide for you.

Speaker Change: We just think.

Speaker Change: For being here thank.

Speaker Change: Thank you Rajeev for again, explaining the figure so well and make them come alive and there's a really big. Thank you. Peter This is Sam I'll ask press conference together in January you'll be here for the next coming months and I'm sure you're not going to slow down, but I just want to thank you here for all the time here, we're here to talk to everyone and taking the time for interviews, it's been a pleasure and privilege to work with you.

Peter Wennink: Pleasure.

Monique Mols: A really big thank you, Peter. This is our last press conference together in January. You'll be here for the next coming months, and I'm sure you're not gonna slow down.

Speaker Change: That's why Roger said logic is a bit down, probably this year, because they're going to use that capacity. They don't need to invest twice. I would love them to invest twice, but they're probably not going to do it. So this is why there seems to be a contradiction, but this is why if you chop up life into periods of January 1st to December 31st, you get these very strange views. This is why we look at 24-25 together, because it's a continuum whereby long lead times of ASML, and short lead times of our customers all play a role in how the dynamics within such a period actually happen. So it's not a contradiction. It's perfectly in line. Yep. Okay, I have one more question on my iPad, but we've already covered that. So if there's nothing else here, then I have one more slide for you, which is, "Thank you."

Peter Wennink: Right.

Monique Mols: I just wanna thank you here for all the times you were here to talk to everyone and taking the time for interviews. It's been a pleasure and a privilege to work with you on this way. Thank you.

Lusine Nouvelle: Yeah, that sounds intuitively, but it was what Roger said, one part of the 2023 sales is a catch-up of customers that you undershipped by more than 50 percent. So can you please give us the machines that you have obviously reserved for all the customers? Can you, you know, ship them to us? Thank you, and these are very long lead time items, so they will get the machines in 2023. So they have the capacity. That's why Roger said logic is a bit down, probably this year, because they're going to use that capacity and don't need to invest twice. I would love them to invest twice, but they're probably not going to do it.

Sam: You're on this way. Thank you here. Thank you all my sight absolute pleasure to work with his years with ASML them in.

Peter Wennink: Hear, hear.

Monique Mols: Thank you.

Peter Wennink: Pleasure was on my side. It's an absolute pleasure to work all these years with ASML, and then I got a question on one of the interviews. I said to you, "How do you feel?" I said, "It's a bit sweet and sour." You know, it's the sweetness is to see where the company is and to see what we've done, and the sour part is that, you know, you have to say goodbye, which, you know, is logical.

Speaker Change: I got a question on one of the interviews is at you how do you feel that as a bit sweet and sour.

Speaker Change: It's the it's the sweetness is to see where the company is in this year, what we've done and the Sahwa part is that you have to say goodbye, which is logical not yet not yet, but I'll tell you. After I got the confirmation this week that my state pension the OE will start.

Monique Mols: Not yet, huh? You're still here till-

Peter Wennink: Not yet.

Monique Mols: 24 April 2024.

Peter Wennink: I'll tell you I got the confirmation this week that my state pension, my AOW, will start on 1 June. So

Lusine Nouvelle: So this is why there seems to be a contradiction, but this is why if you chop up life in periods of January 1st to December 31st, you get these very strange views. That's why we look at 24, 25 together, because it's a continuum, whereby long lead times of ASML, and short lead times of our customers all play a role in how the dynamics within such a period actually happen. So it's not a contradiction; it's perfectly in line. Yeah. Okay, I have one more question on my iPad, but we've already covered that. So, if there's nothing else here, then I have one more slide for you, which is, "Thank you." Thank you for being here. Thank you, Roger, for, again, explaining the figures so well and making them come alive.

Speaker Change: June 1st Phil.

Speaker Change: Thank you for being here. Thank you, Roger, for again explaining the figures so well and making them come alive.

Peter Wennink: Well, what it is.

Speaker Change: Wow.

Speaker Change: Well, you can afford, right? Thank you all. Thank you for all the years that we've exchanged our ideas and our thoughts. So thank you so much. OK, well, thank you all for coming and see you next year. Thank you. Bye bye. Bye bye.

Speaker Change: [laughter] well you can afford right.

Roger Dassen: Well, you can afford, right?

Monique Mols: Okay. Thank you all.

Peter Wennink: Thank you all. Thank you for all the years that we've you know exchanged our ideas and our thoughts. Thank you so much.

Speaker Change: Thank you all thank you for all the years that we've <unk>.

Speaker Change: And a really big thank you, Peter. This is our last press conference together in January.

Speaker Change: Exchange to our ideas and and our thoughts so thank you. So much okay well. Thank you all for coming and see you next year. Thank you bye bye bye.

Peter: You'll be here for the next few months, and I'm sure you're not going to slow down.

Monique Mols: Okay. Well, thank you all for coming, and see you next year.

Peter: But I just want to thank you for all the times you were here to talk to everyone and take the time for interviews. It's been a pleasure and a privilege to work with you in this way.

Peter Wennink: Thank you.

Monique Mols: Bye-bye.

Peter Wennink: Bye.

Speaker Change: [music].

Speaker Change: Thank you.

Speaker Change: Here, here.

Speaker Change: Thank you.

Speaker Change: On my side.

Speaker Change: It's been an absolute pleasure to work all these years with ASML. I mean, I got a question in one of the interviews. I said, how do you feel? I said, it's a bit sweet and sour.

Speaker Change: And a really big thank you, Peter. This is our last press conference together in January. You'll be here for the next few months, and I'm sure you're not going to slow down, but I just want to thank you for all the times you were here to talk to everyone and take the time for interviews. It's a pleasure and a privilege to work with you in this way. Thank you. Here, here. Thank you. On my side. Absolute pleasure to work all these years with ASML. I mean, I got a question in one of the interviews.

Speaker Change: You know, the sweetness is to see where the company is and to see what we've done. And the sour part is that, you know, you have to say goodbye, which, you know, is logical. Not yet, huh?

Speaker Change: You're still here until April 24th. Not yet, but I'll tell you later.

Speaker Change: I got confirmation this week that my state pension, the average state pension, will start on June 1st.

Speaker Change: I said, how do you feel? I said, it's a bit sweet and sour. You know, the sweetness is to see where the company is and to see what we've done. And the sour part is that, you know, you have to say goodbye, which is, you know, logical. Not yet. Not yet.

Speaker Change: Well, you can afford it, right?

Speaker Change: Thank you all.

Speaker Change: Thank you for all the years that we've exchanged our ideas and our thoughts.

Speaker Change: So, thank you so much.

Speaker Change: OK, well, thank you all for coming, and see you next year.

Speaker Change: Thank you.

Speaker Change: Bye bye.

Speaker Change: I'll tell you. I got the confirmation this week that my state pension will start on June 1st. Well, you can afford it, right?

Speaker Change: Thank you all. Thank you for all the years that we've, you know, exchanged our ideas and thoughts. So, thank you so much. Okay, well, thank you all for coming, and see you next year. Bye bye.

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