[NETHERLANDS] ASM International’s first-quarter orders beat estimates, fuelled by high demand for chipmaking equipment in artificial intelligence (AI) linked segments and solid sales in China.
Orders rose 14 per cent from a year earlier at constant currency to 834 million euros (S$1.2 billion) in the three months to March, ASM said on Tuesday (Apr 29). That compares with the average analyst estimate of €808 million, according to data compiled by Bloomberg.
Almere, Netherlands-based ASM makes deposition tools that are used to produce advanced chips. It said demand in AI-related segments remained strong while most other market segments were “sluggish”. The firm has seen strong momentum for so-called “gate-all-around”, or GAA technology, a cutting-edge chip architecture that increases device performance.
Semiconductor-equipment companies including ASM have in recent quarters reaped the benefits of a boom in AI that led to a surge in spending by tech firms globally. But uncertainty surrounding US President Donald Trump’s tariffs, and the implications for economic growth, have raised concerns over chip demand.
Dutch chip-gear maker ASML Holding this month warned that it did not know how to quantify the impact of recent tariff announcements. Eindhoven-based chipmaker NXP Semiconductors on Monday echoed those sentiments, pointing to a “very uncertain environment”.
ASM expects its gross margin this year to be at the upper half of its target range of 46 to 50 per cent, chief executive officer Hichem M’Saad said. That excludes any direct impact from tariffs, which he said “at this point is difficult to predict”.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The firm will leverage its global supply chain capabilities and diversified manufacturing operations to mitigate the impact of any tariffs, and also pass costs onto customers, M’Saad said.
ASM changed its guidance from absolute euro amounts to growth rates at constant currencies, citing exchange rate volatility and its significant US dollar revenue exposure. It expects sales in the year to grow in a range of 10 to 20 per cent over the prior year.
The firm had previously warned that its revenue from China would be lower in 2025 following new export curbs by the US government, estimating equipment sales to China would fall to the “low-to-high 20s percentage” range of total revenue this year.
The chipmaking-equipment industry has found itself at the centre of the escalating trade war between the US and China. In addition to US tariffs on Chinese imports, Washington has boosted efforts to curb China’s semiconductor ambitions and is pressuring allies to escalate restrictions on the Asian nation’s chip industry.
ASM reported a net loss of 28.9 million euros in the first quarter, missing estimates for a profit of 194 million euros. The metric included a 215 million euros impairment from its stake in chip tool maker ASMPT, “triggered by the reduced market valuation in the recent period”, it said. BLOOMBERG
