(Yicai) April 18 -- ASML Holding said it expects China to account for more than a quarter of its total sales this year, higher than previously forecast, thanks to strong demand for mainstream semiconductor equipment.

The Dutch chip-making equipment firm had earlier projected Chinese sales to be at the lower end of 20 percent, Chief Financial Officer Roger Dassen said during an earnings conference call on April 16. The higher forecast is based on robust demand for chips in China, both for domestic use and exports, he noted.

Chinese demand for ASML's products is particularly strong in the mainstream business segment, Dassen said, adding that “the right way to look at it today would be that it's a little over 25 percent of our total sales this year.”

The Veldhoven-based firm also said that despite reports of China's progress in developing extreme ultraviolet lithography tools -- which enable the creation of smaller and more powerful microchips such as those required for artificial intelligence -- it would take years for the country to produce a commercially viable EUV machine capable of rivaling the one made by ASML.

The current advancements on extreme ultraviolet lithography in China appear to be more research-oriented rather than actual production of an EUV tool, the company pointed out. ASML is the world’s only maker of an EUV machine.

The company had net sales of EUR7.7 billion (USD8.2 billion) in the three months ended March 31, in line with its guidance, while net income came in at EUR2.4 billion. ASML said it expects full-year revenue of between EUR30 billion and EUR35 billion, with growth projected to continue into next year.

Editor: Tom Litting