By Mauro Orru
ASM International posted orders below analysts' forecasts for the third quarter as bookings from China fell substantially and demand for semiconductors in different sectors remains uneven.
The Dutch company booked orders of 636.8 million euros ($741.6 million), down 17% on year at constant currencies. Analysts had forecast 719 million euros in orders, according to consensus estimates by Visible Alpha.
The group supplies tools, mostly for the deposition of thin films, that let chip makers create increasingly powerful semiconductors needed for artificial-intelligence applications. Demand for chips to power AI data centers keeps booming and semiconductor producers are under growing pressure to churn out smaller but more efficient chips.
"Recent industry announcements have reinforced expectations that AI will fuel solid growth in the semiconductor markets for many years to come," Chief Executive Hichem M'Saad said.
Major tech companies have announced a patchwork of AI alliances in recent weeks. Nvidia and Intel agreed to jointly develop data-center and personal-computing products. Samsung Electronics and OpenAI reached an initial agreement to establish AI infrastructure, while the ChatGPT maker also struck a multibillion-dollar deal with Advanced Micro Devices to collaborate on AI data centers.
These announcements are positive for companies like ASM amid expectations that tech giants will need to purchase more semiconductor-making tools to produce the sophisticated chips needed to power AI.
However, appetite for less sophisticated semiconductors used in cars and industrial machinery remains weaker as manufacturers are still digesting chip inventories they built at the height of the pandemic, weighing on new orders for production equipment.
The fragmented nature of demand means that ASM's orders can be lumpy as they are determined by how much chip makers are willing to invest on semiconductor-making equipment each quarter.
M'Saad said that logic and foundry orders--those from customers seeking to produce the integrated circuits that power smartphones, computers and other electronic devices--had improved lately. However, he cautioned that demand in the power, wafer and analog markets remained weak.
The company in September cut its top-line forecast for the year due to lower-than-expected demand, saying revenue growth at constant currencies should be close to 10%. It expects revenue growth in 2026 despite a projected slow start.
ASM said quarterly orders should pick up again as 2026 progresses, though demand in China should decline. The company is forecasting a double-digit decline in Chinese sales next year.
Overall revenue in the third quarter grew 8% at constant currencies to 800 million euros, above analysts' forecasts. For the current quarter, the group expects revenue between 630 million euros and 660 million euros.
Net profit increased to 384.1 million euros from 127.9 million euros, above analysts' expectations. Gross profit--a closely watched metric for companies operating in the semiconductor industry--came in at 414.9 million euros, generating a 51.9% margin.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
October 28, 2025 13:47 ET (17:47 GMT)
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