EU Plans to Phase Out Chinese Equipment, Impacting Huawei's €12M Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Cybersecurity Proposal: The EU's upcoming cybersecurity proposal aims to transition from voluntary restrictions on high-risk vendors to mandatory regulations, enhancing trust in critical infrastructure, although uneven implementation has left some countries reliant on Chinese suppliers.
- Impact on Huawei Contract: Spain's €12M contract with Huawei for hardware to store court-authorized wiretaps highlights the practical challenges the EU faces in limiting Chinese equipment, potentially leading to technology shortages for law enforcement and intelligence services.
- Solar Dependency Issue: With over 90% of solar panels in the EU sourced from China, industry officials warn that a direct ban on Chinese equipment could negatively impact consumer prices, underscoring the lack of feasible alternatives and the complexity of market dependencies.
- Legislative Process: The EU Commission's proposal will be discussed with the European Parliament and member states to form a draft law, which is expected to face challenges from industry lobby groups like SolarPower Europe, of which Huawei is a member, potentially influencing the proposal's outcome.
Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ASML is 1344 USD with a low forecast of 1140 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 1331.600
Low
1140
Averages
1344
High
1500
Current: 1331.600
Low
1140
Averages
1344
High
1500
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
