By Mauro Orru

ASM International posted orders below analysts' forecasts for the second quarter as chip makers held off spending on equipment to produce the integrated circuits that power smartphones, computers and other electronic devices.

The Dutch supplier of semiconductor-making equipment booked 702.5 million euros ($821.7 million) in orders, down 4% on year at constant currencies. Analysts had forecast 842.9 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 sophisticated semiconductors as demand for smaller but more efficient chips to power artificial intelligence shows no sign of abating.

Quarterly orders can be lumpy as they are heavily affected by how much chip makers are willing to spend on equipment based on the demand trends they see. Chief Executive Hichem M'Saad said that lower advanced logic and foundry bookings, those from customers seeking to produce integrated circuits, weighed on overall orders in the second quarter.

However, he said demand for products to make gate-all-around transistors--which provide better electrical signals and improved chip performance compared with traditional versions--remained healthy. The company expects logic and foundry bookings to pick up again in the current quarter.

The group said uncertainties stemming from President Trump's tariffs, geopolitical tensions and the economic outlook remained relatively high. Weaker-than-expected orders come a week after its larger rival ASML Holding, which counts Intel and Taiwan Semiconductor Manufacturing Co. among its clients, warned it could no longer guarantee growth in 2026 amid increasing uncertainty from tariffs.

Earlier this month, Trump sent a letter to the European Union threatening 30% tariffs on imports from the bloc beginning Aug. 1. Meanwhile, the Trump administration is carrying out an investigation under Section 232 of the Trade Expansion Act of 1962 that could result in specific tariffs for semiconductors.

ASM International continues to expect year-on-year sales growth between 10% and 20% at constant currencies in 2025, saying it is likely to hit the middle of the range.

Revenue in the second quarter grew 23% at constant currencies to 835.6 million euros, above analysts' forecasts. For the current quarter, the group expects revenue to be flat or up to 5% lower compared with the second-quarter figure.

Net profit increased to 202.4 million euros from 159 million euros, above analysts' expectations. Gross profit--a closely watched metric for companies operating in the semiconductor industry--came in at 433.2 million euros, generating a 51.8% margin.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 22, 2025 12:49 ET (16:49 GMT)

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