Latest news with #ASMLHoldingNV
Mint
7 days ago
- Business
- Mint
ASML, Airbus, Mistral Ask EU to Delay Start of AI Act Rules
(Bloomberg) -- European companies including ASML Holding NV, Airbus SE and Mistral AI have called on the European Union to suspend the implementation of its landmark artificial intelligence regulation for two years because they say it puts the continent's AI ambitions at risk. In a letter signed by representatives from more than 45 organizations, business leaders asked the president of the European Commission, Ursula von der Leyen, to postpone the application of rules hemming in the most powerful AI models, calling for a more 'innovation-friendly regulatory approach.' A significant part of the rules are set to come into force next month. 'This postponement, coupled with a commitment to prioritize regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda,' the letter said. Other businesses to sign the letter include Mercedes-Benz Group AG, BNP Paribas, Deutsche Lufthansa, Publicis Groupe SA, Prosus NV and Siemens Energy AG. They called for the delay to two sets of rules applying to general-purpose AI models and to high-risk AI systems. Businesses are complaining that the commission has failed to deliver key guidelines and standards, including a code of practice which provides instructions for advanced AI companies to comply with the regulation. The drafting of the code of practice — already late after the commission originally slated it for May — has been dogged by criticism. Technology companies have accused it of going beyond the bounds of the EU's AI Act and creating its own set of onerous rules. The US government has also weighed in, and in April sent letters to the commission and a number of European countries that urged the bloc to scrap the code in its current form. Now, these delays threaten to push back implementation of the act altogether. According to the EU's staggered deadline for the act, the most powerful AI models, such as OpenAI's ChatGPT, should be in compliance by August. But as of July the commission's working groups, made up of AI developers, academics and digital rights activists, were still hashing out detailed guidance. The AI Act, passed last year, is a set of controls meant to prevent the worst abuses of the technology. AI developers will have to provide information about how their models are trained and have policies respecting copyright law. The most sophisticated models will have to take additional steps to mitigate risk, shore up security and report information about their system architecture. The act also puts guardrails on some types of use, such as restrictions on tools that would identify people in public spaces in real time. While the code of practice is voluntary, it provides a framework that will help companies stay in compliance with the act. Breaking those rules can carry a fine of as much as 7% of a company's annual sales or 3% for the companies developing advanced AI models. Speaking virtually at a Brussels event in February, Meta Platforms Inc.'s head of global affairs Joel Kaplan called the code of practice 'unworkable and infeasible,' adding that the company would not sign it in its present form. Alphabet Inc. has also criticized the rulebook and an executive said in an interview with Politico in February that guidelines calling for third-party model testing and requirements around copyright protection go too far. The group organizing the letter, called the EU AI Champions Initiative, is led by General Catalyst, a US venture capital firm that has invested heavily in Europe. Two of Europe's largest tech companies, SAP SE and Spotify Technology SA, are members of the initiative, but were not signatories of the letter when it published on Thursday. --With assistance from Mark Bergen. (Updates in the tenth paragraph with context on the organizing group; a previous version corrected the list of signatories to remove SAP and change the number of people who signed) More stories like this are available on
Mint
7 days ago
- Business
- Mint
ASML, Mistral Ask EU to Delay Start of AI Act Rules
(Bloomberg) -- European companies including ASML Holding NV and Mistral AI have called on the European Union to suspend the implementation of its landmark artificial intelligence regulation because they say it puts the continent's AI ambitions at risk. In a letter signed by representatives from more than 45 organizations, business leaders asked the president of the European Commission, Ursula von der Leyen, to postpone the application of rules hemming in the most powerful AI models, calling for a more 'innovation-friendly regulatory approach.' 'This postponement, coupled with a commitment to prioritize regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda,' the letter said. Other businesses to sign the letter include Airbus SE, Mercedes-Benz Group AG, BNP Paribas, Deutsche Lufthansa, Publicis Groupe SA, Prosus NV and Siemens Energy AG. They called for the delay to two sets of rules applying to general-purpose AI models and to high-risk AI systems. Businesses are complaining that the commission has failed to deliver key guidelines and standards, including a code of practice which provides instructions for advanced AI companies to comply with the regulation. The drafting of the code of practice — already late after the commission originally slated it for May — has been dogged by criticism. Technology companies have accused it of going beyond the bounds of the EU's AI Act and creating its own set of onerous rules. The US government has also weighed in, and in April sent letters to the commission and a number of European countries that urged the bloc to scrap the code in its current form. Now, these delays threaten to push back implementation of the act altogether. According to the EU's staggered deadline for the act, the most powerful AI models, such as OpenAI's ChatGPT, should be in compliance by August. But as of July the commission's working groups, made up of AI developers, academics and digital rights activists, were still hashing out detailed guidance. The AI Act, passed last year, is a set of controls meant to prevent the worst abuses of the technology. AI developers will have to provide information about how their models are trained and have policies respecting copyright law. The most sophisticated models will have to take additional steps to mitigate risk, shore up security and report information about their system architecture. The act also puts guardrails on some types of use, such as restrictions on tools that would identify people in public spaces in real time. While the code of practice is voluntary, it provides a framework that will help companies stay in compliance with the act. Breaking those rules can carry a fine of as much as 7% of a company's annual sales or 3% for the companies developing advanced AI models. Speaking virtually at a Brussels event in February, Meta Platforms Inc.'s head of global affairs Joel Kaplan called the code of practice 'unworkable and infeasible,' adding that the company would not sign it in its present form. Alphabet Inc. has also criticized the rulebook and an executive said in an interview with Politico in February that guidelines calling for third-party model testing and requirements around copyright protection go too far. (Corrects to remove SAP from the list of signatories, changes the number of people who signed) More stories like this are available on
Time of India
28-06-2025
- Business
- Time of India
China's $50 billion chip fund switches tack to fight US curbs
China 's main chip investment fund is planning to focus on the country's key shortcomings in sectors like lithography and semiconductor design software, adjusting its approach to better overcome US efforts to stop its technological advances. The third phase of the state-backed National Integrated Circuit Industry Investment Fund, better known as Big Fund III , will focus on backing local companies and projects in areas considered bottlenecks to technological advances, people familiar with the matter said. That includes lithography systems, where Dutch firm ASML Holding NV dominates, and chip design tools, an arena controlled by US companies Cadence Design Systems Inc. and Synopsys Inc. The new vehicle has so far secured only a portion of the 344 billion yuan ($48 billion) of capital it originally sought when first created more than a year ago as Beijing is being more cautious with its semiconductor bets, according to the people, though the shortfall should be temporary. The Big Fund III plans to hold its investments for a longer period compared to the two previous phases, they said, declining to be named discussing a private government initiative. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Victoria Principal Is Almost 75, See Her Now Reportingly Undo A years long US-led campaign to curb China's access to chips, equipment and software has appeared to stall Beijing's ambitions in semiconductors, essential to creating cutting-edge AI. Chinese President Xi Jinping has declared the elimination of such choke-points a top priority, particularly as local artificial intelligence players including DeepSeek and Alibaba Group Holding Ltd. are trying to compete on the global stage with deep-pocketed US rivals such as OpenAI in a critical field. China's Big Fund for years sprinkled capital throughout most sectors of the semiconductor industry, from leading manufacturers such as Semiconductor Manufacturing International Corp. to small design companies. It's now adopting a more targeted approach, after massive investments during the fund's first two phases failed to deliver real breakthroughs beyond a surprisingly sophisticated Huawei Technologies Co. mobile processor in 2023. Live Events Big Fund III is preparing to make its first major investments in coming months, the people said. Part of its directive is to spur industry consolidation, through deal-making or otherwise, they added. If the new vehicle achieves the scale it originally aimed for, it will be China's largest-ever semiconductor fund, bigger than the previous two phases combined. It counts China's Ministry of Finance, state-owned banks and several local government-backed funds as limited partners, according to corporate data provider Tianyancha. It's created three sub-funds to help identify investment targets throughout the supply chain, the people said. China's Ministry of Finance did not respond to a faxed request for comment. Messages to an email for Big Fund III listed on Tianyancha went unanswered. It's unclear whether the fund's managers have identified potential investment or deal targets. Some of the biggest names in China's chipmaking equipment space include Shanghai Zhangjiang High-Tech Park Development Co., which holds an 11% stake in privately-held lithography machine maker Shanghai Micro Electronics Equipment Group Co. Chinese media outlets have also speculated that Huawei eventually wants to build its own lithography machines, required to make cutting-edge AI chips that can rival Nvidia Corp.'s offerings. Empyrean Technology Co. is one of Chinese's best hopes of competing with leading global chip design software providers including Cadence and Synopsys. China's national chip fund was inaugurated about a decade ago with roughly 100 billion yuan in capital, and has since spearheaded the state's investments in all things semiconductors. It's serving as an important signal of Beijing's policy imperatives, as well as a scorecard for government endorsement. In recent years though, it's faced setbacks in achieving its mission, both internal and external. The US banned Nvidia from selling its best AI accelerators to China, while allies such as Japan and the Netherlands have joined the campaign to ringfence the country's tech sector. Stung by a lack of scientific achievement, Beijing initiated a series of anti-graft probes into top chip industry officers in 2022.
Yahoo
17-04-2025
- Business
- Yahoo
ASML Holding NV (ASML) Q1 2025 Earnings Call Highlights: Strong EUV Sales and Strategic Challenges
Total Net Sales: EUR7.7 billion. Net System Sales: EUR5.7 billion (EUV: EUR3.2 billion, Non-EUV: EUR2.5 billion). Install Base Management Sales: EUR2 billion. Gross Margin: 54%. R&D Expenses: EUR1.161 billion. SG&A Expenses: EUR281 million. Effective Tax Rate: 16.7%. Net Income: EUR2.4 billion. Earnings Per Share (EPS): EUR6. Cash, Cash Equivalents, and Short-term Investments: EUR9.1 billion. Free Cash Flow: Minus EUR475 million. Net System Bookings: EUR3.9 billion (EUV: EUR1.2 billion, Non-EUV: EUR2.8 billion). Dividend: EUR1.52 per ordinary share for Q1 2025; total 2024 dividend proposal of EUR6.40 per ordinary share. Share Purchases: EUR2.7 billion in Q1 2025. Warning! GuruFocus has detected 2 Warning Sign with CFG. Release Date: April 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ASML Holding NV (NASDAQ:ASML) reported total net sales of EUR7.7 billion for Q1 2025, in line with guidance. The company achieved a gross margin of 54%, exceeding expectations due to favorable EUV product mix and customer productivity milestones. Net income for Q1 2025 was EUR2.4 billion, representing 30.4% of total net sales, with an earnings per share of EUR6. ASML Holding NV (NASDAQ:ASML) continues to see strong demand in the AI sector, which is expected to drive growth in 2025 and 2026. The company is making significant progress in EUV technology, with milestones achieved in both low NA and high NA platforms, supporting customer roadmaps and cost optimization. ASML Holding NV (NASDAQ:ASML) experienced a negative free cash flow of EUR475 million in Q1 2025 due to customer payment dynamics and investments in fixed assets. There is increased uncertainty in the business environment due to ongoing discussions about tariffs, which could impact ASML Holding NV (NASDAQ:ASML) and its customers. The gross margin for the second half of 2025 is expected to be lower than the first half due to potential tariff impacts and lower upgrade revenue. ASML Holding NV (NASDAQ:ASML) faces challenges with the geopolitical situation, particularly regarding tariffs that could affect the semiconductor supply chain. The company anticipates a wider range of gross margins for Q2 2025 due to uncertainties around tariffs and their absorption in the value chain. Q: Could you consider flexibility around the pricing of high-NA to facilitate adoption? A: Christophe Fouquet, CEO: The main reason for not adopting new systems quickly is tool maturity, not price. We focus on achieving maturity to ensure optimized cost of technology. Lowering prices without maturity would create issues for customers. Q: What kind of bookings run rate should we expect to see growth in 2025 and 2026? A: Roger Dassen, CFO: We believe 2026 will be a growth year based on technology and market demand, despite macroeconomic uncertainties. While we have a strong backlog, additional bookings are needed for growth, but we won't quantify the exact run rate needed. Q: Is China still expected to account for around 25% of sales this year? A: Roger Dassen, CFO: Yes, we expect China to be slightly over 25% of sales this year, with demand particularly strong in the mainstream business. The backlog composition for China remains in the 20% to 25% range. Q: How are customer conversations regarding tariffs affecting delivery schedules? A: Christophe Fouquet, CEO: Tariff announcements have not changed business conversations with customers. There is uncertainty, but discussions have not fundamentally altered business planning or delivery schedules. Q: Can you provide an update on the adoption of single-exposed EUV versus multi-patterning? A: Christophe Fouquet, CEO: Adoption is happening gradually. Each new customer node with better cost of technology, like the 3800E, presents an opportunity for more single-exposed adoption. This is an ongoing effort with customers. Q: What is the expected impact of tariffs on gross margins for the full year? A: Roger Dassen, CFO: It's difficult to predict the full-year impact due to uncertainty around tariffs. We aim to minimize exposure and believe the tariff burden should be shared across the value chain, not solely by ASML. Q: How does the geographic diversification of fabs affect your business? A: Roger Dassen, CFO: Dispersed fabs may lead to increased capacity needs, potentially driving semiconductor demand. However, tariff uncertainties add complexity to this scenario. Q: What are the key milestones for the EXE platform from R&D to production? A: Christophe Fouquet, CEO: There are three phases: R&D validation with EXE5000, early production testing with EXE5200, and high-volume manufacturing expected in 2027-2028. Progress is ongoing with customers. Q: How does the order volatility relate to tariff uncertainties? A: Roger Dassen, CFO: Order volatility is more related to the lumpiness of order intake rather than tariff uncertainties. Major orders require significant governance, affecting subsequent quarters' order intake. Q: How are you addressing the US tariffs in relation to encouraging semiconductor manufacturing in the US? A: Roger Dassen, CFO: The complexity of tariffs is recognized by all parties, including the US administration. There is a need for more time to understand how to reconcile onshoring goals with tariff impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
16-04-2025
- Business
- Bloomberg
Chipmakers Lead Tech Stock Rout as Trump Curbs Chips to China
Technology stocks led losses Wednesday morning after Nvidia Corp. and Advanced Micro Devices Inc. said President Donald Trump's administration has curbed the export of its chips to China, while ASML Holding NV offered a disappointing earnings report. The S&P 500 Index slid 1.43%, while the Nasdaq 100 Index dropped 2.21%. Nvidia sank as much as 7% after warning it will report around $5.5 billion in related charges during the fiscal first quarter, with AMD down 6.01% as it expects to take a charge of as much as $800 million. ASML plummeted 6.09%. The Philadelphia Stock Exchange Semiconductor Index fell 4.02%.
