ASM International Revenue Drops 10% to €639 mn in First-Quarter

ASM International has reported 10 percent drop in revenue to €639 million during the first quarter of 2024.
ASM International at a trade showASM International’s gross profit margin rose to 52.9 percent from 51.1 percent in Q1 of last year, on the back of a positive mix, and in particular a strong contribution from China sales. ASM International’s sales in China were a record.

Operating result margin decreased to 30.0 percent, compared to 31.2 percent in Q1 last year. This was mainly by the decrease in revenue and partly offset by the increase in gross profit margin, while the increase in operating expenses was relatively moderate in Q1.

ASM International, a semiconductor equipment company, said orders of €698 million in Q1 2024 increased by 8 percent, supported by healthy GAA 2nm orders, and a strong increase in memory orders, mainly for HBM-related DRAM applications.

ASM International said revenue for Q2 2024 is projected to increase to €660-700 million. Revenue in H2 is expected to increase by 10 percent or more compared to H1 2024. Full year 2024 is expected to be another year of growth for ASM.

ASM International said bookings increased 10 percent to €698 million. Bookings included a healthy level of tool orders related to the gate-all-around (GAA) 2nm technology node. Current traction confirms the expectation that the GAA migration is going to be a strong driver for ASM.

Memory bookings showed a solid increase compared to a lower level of last year, for the larger part driven by HBM-related demand for high-performance DRAM applications. In addition, bookings from the Chinese market remained at a strong level in the first quarter. Order intake in power/analog/wafer (excluding silicon carbide Epi) continued to be relatively low, reflecting the soft conditions in this market segment.

While market conditions are mixed in the first part of the year, ASM International expects the recovery in wafer fab equipment (WFE) spending to gradually pick up speed in the remainder of the year. ASM International expects revenue in the second quarter of 2024 to increase to a range of €660-700 million.

ASM International projects revenue in the second half to increase 10 percent or more compared to the first half. ASM International still expects sales from the Chinese market in the second half to be lower, but the decrease will be more moderate. Sales in advanced logic/foundry, mainly for GAA, and in the memory segment are expected to be higher in the second half.

ASM International reiterates its revenue target for 2025 (range of €3.0-3.6 billion), driven by an expected rebound in the WFE market, including the move of GAA 2nm technology into high-volume manufacturing in 2025, and a further recovery in the memory markets.