ASML’s Bookings Miss Expectations Amid Trade Tensions with U.S.

Veldhoven, Netherlands – Dutch semiconductor equipment manufacturer ASML announced on Wednesday that its net bookings fell short of expectations, indicating a possible slowdown in demand for its chipmaking machines. The company reported net bookings of 3.94 billion euros ($4.47 billion) for the first quarter of 2025, well below the Reuters forecast of 4.89 billion euros.

ASML CEO Christophe Fouquet addressed the disappointing figures during a conference call, stating that despite the results, the overall demand outlook remains strong, fueled by developments in artificial intelligence. However, he expressed concerns regarding uncertainties among some customers that might lead the company toward the lower end of its full-year revenue guidance.

“The demand outlook remains strong, but we must navigate uncertainties with some customers that could impact our revenue targets,” Fouquet said, suggesting that the company estimates a revenue range between 30 billion euros and 35 billion euros for 2025.

The semiconductor industry has recently experienced volatility, exacerbated by concerns surrounding U.S. President Donald Trump‘s tariff policies, which have the potential to affect the global semiconductor supply chain. Global chip stocks have been particularly sensitive to these developments over the past two weeks, leading to market fragility.

In recent announcements, the U.S. administration extended a temporary exemption of tariffs on smartphones, computers, and semiconductors. However, this was followed by mixed messages from Trump’s officials, leaving stakeholders anxious about the future of trade regulations impacting technology imports.

On another front, the U.S. Commerce Department has launched a national security investigation into semiconductor technology imports, with a focus on determining whether additional tariffs are necessary to protect national interests.

The ripple effects of these developments are being felt globally. In a related update, China appointed Li Chenggang as the new vice minister of commerce and chief representative for international trade negotiations, replacing Wang Shouwen. The appointment comes amid escalating trade tensions between the U.S. and China, signaling the necessity for a new approach to diplomacy.

Alfredo Montufar-Helu, head of the China Center at The Conference Board, remarked on Li’s role, stating, “In light of increasing trade tensions, China’s leadership may require a fresh perspective to deescalate these issues. Li brings significant experience that could be beneficial for negotiating with the U.S.”

Li Chenggang brings over a decade of experience from various roles within China’s Ministry of Commerce, including representation at the World Trade Organization. His appointment may symbolize a strategic pivot by China as it negotiates its position in the global trading landscape, particularly in light of ongoing disputes.

President Trump is still open to making a trade deal with China but insists that Beijing must initiate the process. White House Press Secretary Karoline Leavitt noted, “The ball is in China’s court: China needs to make a deal with us; we don’t need to make a deal with them.” Trump has implemented tariffs on nearly all imports from China, including a steep 20% duty related to the fentanyl trade.

As both nations impose retaliatory tariffs, analysts warn that the recent developments might halt trade between the U.S. and China, which could part ways with the previously cited mutual benefits. The recent appointment of Li indicates that China is preparing to navigate an increasingly challenging trade environment.