ASM Lifts 2027 Outlook as AI Buildout Fuels Demand For Tools
(Bloomberg) -- ASM International NV increased its revenue target for next year by about 24%, setting up the chip-equipment maker to hit its 2030 goal three years ahead of schedule, on a surge in sales linked to AI investments.
Sales will exceed €5.7 billion ($6.3 billion) in 2027 at constant currencies, the Almere, Netherlands-based company said in a statement on Tuesday. In July, ASM forecast revenue above €4.6 billion for the period.
Growth next year will be driven by demand from memory chipmakers as well as those producing advanced logic chips, both in demand from firms building out data centers to supply artificial intelligence. ASM — whose tools deposit thin film layers on wafers, a key step in the manufacturing process — is winning more business as its customers ramp up production and look for ways to increase semiconductors’ efficiency and performance.
“The demand environment remains very strong,” Chief Executive Officer Hichem M’Saad said in the statement. “Capacity remains tight across our customer base, and customers are moving quickly to increase output.”
ASM also unveiled a share buyback plan of up to €300 million. The company’s American Depository Receipts rose 6.7% to $836.74 at 2:06 p.m. in New York.
Its customers, which include Taiwan Semiconductor Manufacturing Co. and Intel Corp., have accelerated their capital expenditure plans. TSMC, which makes chips for Nvidia Corp. and Apple Inc., plans to spend as much as $64 billion, while Intel estimated investing about $20 billion on new plants and equipment this year.
Fellow Dutch chip-equipment maker ASML Holding NV has also seen gains. The lithography tool maker earlier this month said it was boosting production capacity as it couldn’t meet 2027 and 2028 demand at current levels.
ASM warned Tuesday that its supply chain was “stretched,” but said it’s working closely with suppliers and customers to accelerate shipments.
Revenue in the third quarter rose 44% at constant currencies from a year ago to €1.16 billion, while net income declined to €308.1 million in the period. Both metrics beat analysts’ average estimates, according to data compiled by Bloomberg.
(Updates with share reaction and additional details from third paragraph)
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