ASML Holding N.V. (NASDAQ:ASML) Q4 2022 Earnings Call Transcript

But we’ve always said normalize that, don’t take for granted that those numbers are the right numbers to use on a go-forward basis. So it’s not that anything bad happened. As a matter of fact, something good happened because systemically, I think the ASP on the D has gone up. As it relates to the pricing of the E, yes, I mean, definitely, we’re still sharing value with the customers. I mean that’s a fundamental principle in the way we do business with our customers. We want to make sure that the incremental value that the tool provides over the predecessor tool is being fairly shared between the customer and ourselves. So that promise has not changed. If you look at the way that pans out because you need to recognize value is a whole bunch of things, value is better imaging quality, value is better overlay, value is higher productivity.

If you add it all up, then in the past, you saw a pretty strong correlation between improvement in productivity and ASP increase. And that historically, on EUV, there was sort of a near 100% correlation there. As you know, ultimately, on the 3800E, we’ll see an improvement in productivity, 160 wafers per hour to 220. That will be in stages, but ultimately the 220 is the stage that we’ll get to. So that definitely means that we’re going to have a pretty significant improvement of the ASP. And I think that, that also should play out in your models.

Peter Wennink: And in addition to that, it doesn’t mean that this goes without any cost increase. I mean it’s not that go down straight down to the bottom line. Why? Because the 3800, as we mentioned in many occasions, actually sees the first introduction of technology that we are applying in the high-NA tool. So there is also a sort of new stages, so it’s also a cost element there. So it’s not a one-to-one increase in ASP going to the gross margin. But yes, you’ll see gross margin increase, but also a cost increase because we are using the latest and greatest technology out of high-NA backported into the 3800. So just…

Roger Dassen: That’s correct. Yes.

Skip Miller: All right. So now on behalf of ASML, I’d like to thank you all for joining us today. Operator, if you could formally conclude the call, I’d appreciate it. Thank you.

Operator: Thank you. This concludes the ASML 2022 Fourth Quarter and Full Year Financial Results Conference Call. Thank you for participating. You may now disconnect.