By Mauro Orru

ASM International posted strong sales for the first quarter as chip makers continue to invest in tools to make increasingly sophisticated semiconductors in a bid to satisfy booming demand for artificial intelligence.

The Dutch group, which supplies wafer-processing equipment for the deposition of thin films, reported sales of 862.5 million euros, equivalent to $1.02 billion. These were up 16% on year at constant currencies and above analysts' forecasts of 834.6 million euros, according to Visible Alpha.

The company said logic and foundry customers--those seeking to produce the integrated circuits that power smartphones, computers and other electronic devices--had led growth in the quarter amid unrelenting appetite for AI.

"End-market demand continues to be primarily driven by AI, even as the broader backdrop has become more uncertain amid the Middle East conflict, rising energy prices, and potential implications for global GDP growth," Chief Executive Hichem M'Saad said.

Like its larger rival ASML Holding, which supplies advanced semiconductor-making machines, ASM International has also been a darling of the AI boom as chip makers keep investing heavily into equipment they need to produce semiconductors powering AI data centers.

ASM International shares have nearly doubled over the past 12 months. Investors have welcomed higher spending plans from industry heavyweights like Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker, raising expectations that chip makers will need to purchase more semiconductor-making tools to satisfy demand from their own customers.

ASML executives said last week that AI-related infrastructure investments were driving the semiconductor industry's growth, and that demand for chips is outpacing supply. ASM International had a similar message.

"With AI adoption broadening and workloads for new use cases scaling up rapidly, compute capacity is increasingly becoming the main constraint, driving accelerated investment in AI infrastructure," M'Saad said. He added that supporting customers' expansion plans even as the surge in demand puts pressure on the supply chain remained a priority.

For the current quarter, the group expects sales of about 980 million euros at constant currencies. The second half is expected to be stronger than the first half.

The company swung to a net profit of 238.5 million euros from a loss of 28.9 million euros a year earlier. Gross profit--a closely watched metric of pricing power and profitability--came in at 459.9 million euros, generating a 53.3% margin.

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

(END) Dow Jones Newswires

April 21, 2026 12:48 ET (16:48 GMT)

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