Dutch chip equipment manufacturer ASML has announced a projected 25% increase in net sales for 2023 compared to the previous year.

The company produces machines that are crucial in the production of advanced chips and its clients include tech giants such as Intel and TSMC.

ASML's net sales for the fourth quarter of 2022 saw a 29% rise to $7 billion and a 13% year-on-year increase for the full year to 21.1 billion euros. Despite this, the company reported a 4% decline in full-year net income to 5.6 billion euros.

ASML CEO Peter Wennink spoke to CNBC about the current state of the industry, acknowledging the potential impact of recession fears, inflation, and high-interest rates on business.

However, Wennink stated that ASML's customers are optimistic about a recovery in the second half of this year and are not cancelling orders as they expect the situation to be short-lived. The long lead time of ASML's machines, typically a year and a half to two years, also prevents clients from cancelling orders as they could end up at the back of the queue.

TSMC and Intel are among the companies ramping up their chip production globally, with TSMC set to open two semiconductor plants in Arizona. The move towards chip manufacturing closer to home by the US and Europe also bodes well for ASML's future prospects.