By Mauro Orru


ASML Holding's shares plunged after the Dutch supplier of chip-making equipment said it could no longer guarantee growth in 2026 amid increasing uncertainty from President Trump's tariffs.

The warning comes days after Trump sent a letter to the European Union threatening 30% tariffs on imports from the bloc beginning Aug. 1 as trade talks between Brussels and Washington continue.

The chip industry has been seeking clarity for months as the Trump administration conducts an investigation under Section 232 of the Trade Expansion Act of 1962, which could result in specific tariffs for semiconductors. ASML sells chip-making machinery to U.S. clients like Intel.

"We continue to see increasing uncertainty driven by macro-economic and geopolitical developments," Chief Executive Christophe Fouquet said in a statement. "Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage."

ASML shares in Amsterdam closed 11% lower on Wednesday, wiping out more than $30 billion in market value.

Fouquet's remarks come three months after he said that 2025 and 2026 would be growth years. Finance chief Roger Dassen said clients were now more concerned about tariffs than three months ago, warning that prolonged uncertainty might prompt some to delay or reconsider investment decisions.

ASML is working with the supply chain to mitigate the impact of tariffs as much as possible, the executive said, as levies on equipment sold to clients in the U.S. or on parts shipped there for manufacturing or servicing would hit ASML directly.

Dassen also said the group was considering a scenario where other countries, or blocs like the EU, impose tariffs on what ASML ships from the U.S. since the company has some manufacturing in San Diego.

"Both the direct and the indirect impact are still very uncertain. So, we just have to navigate that as best as we can," Dassen said.

The company on Wednesday moved to narrow its guidance for 2025. ASML now expects sales to grow around 15% to roughly 32.50 billion euros ($37.71 billion) this year compared with a previous guidance range of 30 billion to 35 billion euros. Its gross margin should come in at about 52% compared with prior guidance of 51% to 53%.

The changes to ASML's forecasts come as the group logged 5.54 billion euros in orders for its chip-making machines in the second quarter, down slightly from 5.57 billion euros a year earlier, but above analysts' forecasts of 4.45 billion euros, according to consensus estimates by Visible Alpha.

The company, which counts Taiwan Semiconductor Manufacturing Co. and Samsung Electronics among its largest clients, said 2.3 billion euros in orders were for its high-end extreme ultraviolet lithography systems that let semiconductor manufacturers print the most intricate layers on chips. Analysts had forecast 1.99 billion euros in orders for those EUV machines.

ASML's orders can fluctuate significantly between quarters as they are heavily affected by how much chip makers are willing to spend on production equipment based on the demand trends they see. The group said earlier this year that it would stop reporting quarterly orders as of 2026 because the metric doesn't necessarily reflect its performance.

The company has benefited from the artificial-intelligence boom, but demand for machines that make less sophisticated chips found in cars and smartphones has been more sluggish in recent months. Fouquet said AI fundamentals remained strong even when looking at 2026.

ASML reported sales of 7.69 billion euros for the second quarter, up from 6.24 billion euros a year earlier. The figure is above analysts' forecasts and at the top of company guidance.

Net profit grew to 2.29 billion euros from 1.58 billion euros a year earlier, beating market expectations. Gross profit--a closely watched metric for companies operating in the semiconductor industry--came in at 4.13 billion euros, generating a 53.7% margin that beat both consensus and company guidance.

For the current quarter, the company expects sales between 7.4 billion euros and 7.9 billion euros, with a gross margin between 50% and 52%.


Write to Mauro Orru at mauro.orru@wsj.com


(END) Dow Jones Newswires

07-16-25 1217ET