ASML upbeat despite fall in profits ASML, the world's largest maker of equipment for manufacturing chips by sales, saw first-quarter profits fall 28 per cent as the chip industry returned to more normal levels after two exceptional years of growth. However, the Dutch company gave an upbeat outlook saying that demand for logic chips used in smartphones, tablets and lightweight computers would continue to drive strong demand for its machinery. Logic chips go straight into the things that are currently very hot and that is everything that has to do with mobile, media and the internet, so you have to think about smartphones, tablets. That is driving this market, that is very visible," said Peter Wennink, chief financial officer. Eric Meurice, chief executive, said mobile devices would continue to drive demand for the next six to nine months. "We see sales stability at current Q1 levels for the next two quarters with clear indications that the Logic segment will continue its strong demand trend for the remainder of the year," he said. Foundries, such as Taiwan Semiconductor (TSMC), and integrated device manufacturers such as Intel and Apple will continue to be the company's key customers this year, he added. ASML produces the lithography machines that are used to make silicon chips, and is seen as a bellwether for the technology sector. In 2010 and 2011 the company had record results as the technology industry scrambled to increase production following a slump in 2009. Sales for the three months to the beginning of April were €1.25bn, down nearly 14 per cent from the same period last year, and net profits fell to €282m from €395m. However, the figures are ahead of analysts" estimates and the company reiterated forecasts for sales of about €2.4bn in the first half. The numbers reflect a more subdued market for IT after two strong years. Earlier this month Gartner said it expected global IT spending to grow just 2.5 per cent to $3.7tn this year, down from previous forecasts of 3.7 per cent growth as public spending cuts, the eurozone crisis and a strong dollar took their toll. On Tuesday Intel reported flat revenues and said it had seen slower demand from consumers in mature markets. However, the world's largest chipmaker by revenues issued strong forecasts for the second half of the year when it brings out a new PC processor for a crop of very thin laptop computers known as ultrabooks. TSMC, Samsung and SK Hynix have all also signalled that they will increase investments this year as they compete for share in the market for mobile phone chips.