ASM International's Q4 Orders Miss Forecasts, but AI Demand Drives Positive Outlook

ASM International Orders Miss Forecasts Amid Weak China Demand -- Update

ASM International posted orders below analysts' expectations for the fourth quarter amid weak demand for chip-making equipment in China, a market increasingly affected by U.S. export restrictions as Washington seeks to curb Beijing's technological ambitions. The Dutch group booked 731.4 million euros ($765.7 million) in orders, up 8% on year at constant currencies. Analysts had forecast 786.61 million euros in orders, according to consensus estimates by Visible Alpha. ASM International provides tools--mostly for the deposition of thin films---that chip makers need to produce increasingly powerful semiconductors as demand for smaller but more efficient chips to power artificial intelligence is on the rise. The company said sales in China had dropped in the second half of last year compared with the first half amid a consistent push in Washington to prevent Beijing from accessing technology that could be used to advance its military capabilities. The U.S. introduced its latest restrictions in December, the fourth attempt in three years by U.S. policymakers to curb China's access to cutting-edge semiconductor technology. Those rules limited the sale of memory chips that power AI applications and also narrowed the suite of chip-making tools available to China. ASM International said its China revenue should decrease in 2025 overall. The company said it received strong orders for so-called gate-all-around technology in the fourth quarter as chip makers are moving away from classical transistors to gate-all-around versions that provide better electrical signals and overall chip performance. Chief Executive Hichem M'Saad said AI was playing an increasingly pivotal role in driving demand for chip-making equipment. However, demand for legacy semiconductors found in cars and industrial machinery has been bumpy in recent months, he added. The miss in orders at ASM International comes nearly a month after its larger rival ASML Holding surpassed analysts' expectations for the fourth quarter, with chip makers scrambling to get their hands on extreme ultraviolet lithography systems that are used to print the most intricate layers on chips. Quarterly revenue at ASM International grew 27% at constant currencies to 809 million euros, beating analysts' forecasts and reaching the top end of company guidance. For the current quarter, the group is forecasting revenue between 810 million euros and 850 million euros. Net profit climbed to 225.8 million euros from 90.9 million euros, above analysts' expectations. Gross profit--a closely watched metric for companies operating in the semiconductor industry--came in at 407.2 million euros, generating a 50.3% margin. The company said it would propose a 2024 dividend of 3 euros a common share, above 2.75 euros a common share for the previous year. ASM International also said its management board authorized a new repurchase program of up to 150 million euros of common shares between 2025 and 2026. The group said it continued to expect revenue between 3.2 billion euros and 3.6 billion euros this year.

ASM Sales Forecast Beats Estimates as AI Boom Drives Demand

ASM International NV's first-quarter revenue forecast beat estimates as an artificial intelligence boom drives demand for the Dutch semiconductor-equipment maker's products. It expects revenue of between €810 million ($849 million) and €850 million in the period, with a further increase in the second quarter, the Almere, Netherlands-based company said in a statement on Tuesday. That compares with the average €800.2 million analyst estimate compiled by Bloomberg. ASM also confirmed its outlook for the full year.