AMSTERDAM, July 17 (Reuters) - ASML, the

world's biggest chipmaking equipment supplier, reported

better-than-expected second-quarter earnings on Wednesday on

strong sales to China and with higher new bookings than the

first quarter.

ASML reported net income of 1.6 billion euros ($1.74

billion) on revenue of 6.2 billion euros for the quarter ended

June 30. Analysts had expected 1.41 billion euros on revenue of

6.04 billion euros, according to LSEG data.

The Dutch company's new CEO Christophe Fouquet said that

ASML continues to view 2024 as a "transition year" in which its

performance will be about flat as it prepares for a strong 2025.

"We currently see strong developments in AI, driving most of

the industry recovery and growth, ahead of other market

segments," he said in a statement.

ASML dominates the market for lithography systems, complex

tools that use lasers to help create the tiny circuitry of

computer chips.

Its closely-watched new bookings increased to 5.6 billion

euros from 3.6 billion euros in the first quarter, with about

half of that coming from the its most advanced EUV product lines

-- vital to manufacture AI and smartphone chips.

ASML's top customer is Taiwan's TSMC, which makes

chips for Nvidia ( NVDA ) and Apple ( AAPL ).

"EUV orders increased substantially" in the quarter, Mihuzo

Securities analyst Kevin Wang told Reuters. "We attribute this

to strong orders from TSMC and Intel ( INTC )."

Analysts had expected the company's order book to increase

to about 5 billion euros, according to estimates compiled by

Visible Alpha.

However, the results were below ASML's net income of 1.94

billion euros on revenue of 6.90 billion euros a year ago. TSMC,

Intel ( INTC ) and Samsung are engaged in new construction projects that

will be outfitted with equipment in 2025-2027.

($1 = 0.9172 euros)

(Reporting by Toby Sterling; Editing by Tom Hogue, Janane

Venkatraman and Varun H K)