Chip equipment maker ASML Holding NV (NASDAQ:ASML) reaffirmed its commitment to the Chinese market while emphasizing strict compliance with global trade laws and regulations.

Shen Bo, executive vice president of ASML and president of ASML China, said artificial intelligence is now one of the most significant forces driving global chip demand across industries such as automotive, consumer electronics, and the Internet of Things.

Shen noted that China remains vital to the Dutch semiconductor equipment giant’s global expansion and long-term strategy, China Daily reported.

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Based on its third-quarter results, the company expects China to contribute more than 25% of its total sales in 2025.

He explained that while China's revenue share was unusually high over the past two years due to ASML clearing a backlog of orders, future sales will likely normalize in line with its global customer mix — a reflection of industry cycles, not market weakness.

ASML stock gained 48% year-to-date, topping the Nasdaq 100’s (which includes ASML) 19% returns backed by demand for advanced chips driven by the AI market, and increased capital spending by major customers like Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM). The company’s monopoly on EUV lithography technology is pivotal for manufacturing the most cutting-edge chips. Additionally, a recent investment in AI startup Mistral AI also contributed to the upside. 

ASML continues to view China as a healthy and essential part of the global semiconductor ecosystem. Shen said the company is focused on helping Chinese clients seize growth opportunities in mainstream chipmaking through its advanced lithography technologies while adhering to all international laws.

Participating in the China International Import Expo for the seventh time, ASML showcased its holistic lithography solutions, which integrate lithography systems, computational lithography, and inspection tools to help chipmakers improve yield, efficiency, and sustainability.

ASML Price Action: ASML Holding shares were trading lower by 0.64% to $1,022.58 at publication on Friday. 

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