ASM International sees stable H1 revenue, GAA and China demand boost Q4 orders
Recasts; adds background in paragraph 3,12, detail in paragraphs 4-11
Feb 27 (Reuters) -Semiconductor equipment manufacturer ASM International ASMI.AS on Tuesday forecast stable revenue for the first half of 2024 after a rise in orders in the fourth quarter of 2023 driven partly by its gate-all-around (GAA) chip-making technology.
The Dutch group reported fourth-quarter revenue of 632.9 million euros ($686 million), slightly below 724.8 million generated in the same period the year before, but within the company's guidance range of 600-640 million.
Analysts' average forecast in an LSEG poll was for 626.3 million euros.
New orders came in at 677.5 million euros, up from 627.4 million in the third quarter, helped by the GAA technology and sustained demand in China.
Some of the biggest sector names and ASMI clients like Intel INTC.O, and the world's largest contract chipmaker TSMC 2330.TW plan to adopt the technology, as they race to meet global demand for cutting edge chips that power everything from cars to computers and smartphones.
For the first quarter of 2024, ASM anticipates revenue within the same 600-640 million euro range, and a similar level in the second quarter. The last six months of 2024 could see stronger earnings, it said.
AMS's sales in China should still be relatively high in the first part of the year, it said.
The group expects to benefit from a rebound of the wafer foundry equipment in 2025 after softer market conditions in the first part of this year.
It kept its 2025 revenue outlook of between 3 billion and 3.6 billion euros.
Upbeat updates last week from chip designer Nvidia, Intel and TSMC lifted European markets to record high.
ASM also plans to buy back up to 150 million euros within 2024-2025 and propose a regular dividend of 2.75 euros per share for 2023.
Last year the group was the best performer in the Dutch blue chip AEX .AEX index, amid optimism the equipment it sells will play an increasing role in cutting edge chips made by Taiwan's TSMC.
($1 = 0.9213 euros)
($1 = 0.9221 euros)
Reporting by Dagmarah Mackos;
Editing by Mark Potter and Emelia Sithole-Matarise
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
