Dutch semiconductor equipment manufacturer ASM International NV (ASMIY.US) reported its third-quarter earnings on October 28 (Eastern Time), revealing that order volumes fell short of analyst expectations. The decline was primarily attributed to reduced demand from cutting-edge chipmakers and weaker orders from China.

In a statement released on Tuesday, the company noted that after adjusting for currency fluctuations, Q3 orders dropped 17% year-over-year to €636.8 million (approximately $743 million). Analysts had projected average orders of €724.9 million for the quarter. ASM attributed the decline to shrinking business in China, where U.S.-China trade tensions disrupted customer operations, as well as delayed orders from key clients producing advanced logic chips.

The Almere-based company had previously warned of these trends during its September investor day, forecasting a potential 5%–10% decline in second-half sales. ASM CEO Hichem M’Saad stated, "We expect the weak order trend to bottom out in the fourth quarter. As we progress into 2026, quarterly order volumes should begin to recover."

The company also projected Q4 sales between €630 million and €660 million, below analysts’ average estimate of €682 million. While ASM anticipates a "slow start" in early 2026, it expects full-year revenue growth.

In Q3, ASM’s revenue rose 8% year-over-year to €800 million on a constant-currency basis, while adjusted net profit increased to €206.2 million.

ASM’s deposition equipment is critical for advanced chip manufacturing, particularly for AI infrastructure applications. The company previously benefited from the transition to gate-all-around (GAA) technology—a chip architecture that enhances performance and reduces power consumption. The AI boom has driven broad-based spending in infrastructure.

ASML Holding (ASML.US), a peer specializing in advanced lithography equipment, recently noted that the "positive momentum" from AI investments is expanding across more customer segments.