Dutch chip manufacturing equipment provider ASML Holding NV confirmed to China Daily that it expects its sales in the Chinese market back to a "more normalized level", as the company released its third-quarter fiscal report.

ASML released on Tuesday its third-quarter earnings for 2024, revealing potential shifts in its China business performance. Analysts have noted that its sales growth in China could slow down in the coming quarters.

ASML responded that in recent years, the company's inability to meet all the demand from the Chinese market, coupled with reduced demand from customers out of China, contributed to a higher proportion of system sales in China.

"As ASML gradually meets the needs of Chinese customers and sees a recovery in other markets, we expect the share of system sales in China to return to a more normal level," said Roger Dassen, ASML's chief financial officer.

Dassen projected that China will account for roughly 20 percent of ASML's global revenue next year. However, in the third quarter of this year, China remained ASML's largest market, representing 47 percent of net system sales.

Additionally, ASML highlighted that a significant portion of its business in China involves the sales of immersion lithography systems, which boast higher profit margins than the company's overall gross margin. Therefore, changes in China's market share could also affect ASML's overall profitability.

This shift comes as the semiconductor industry grapples with supply chain disruptions and fluctuating demand across key markets.