Veldhoven-based chip technology firm ASML expects to grow its turnover by 25% this year, despite falling demand and pressure from the United States to restrict trade with China.

ASML posted sales of €21.2 bn in 2022 and €6.4 bn in the final quarter, increasing its turnover by 14% over the year. It expects to achieve similar figures in the first quarter of 2023 before picking up in the second half of the year.

CEO Peter Wennink said the recent drop in demand had had little impact on the company’s business because it manufacturers machines used by chip producers, which take longer to produce than the expected length of the downturn.

ASML’s profits dipped marginally from €5.9 bn in 2021 to €5.6 bn last year, but the company raised its dividend by 5.5% to €5.80 per share.

ASML was the subject of talks between prime minister Mark Rutte and US president Joe Biden during Rutte’s visit to Washington last week.

The US is putting pressure on the Netherlands to fall in line with its policy of blocking sales of chips that could be used for military purposes to China, but the Dutch are reluctant to comply, not least because 15% of ASML’s exports go to China.