Wednesday, October 27

ASMI expects next-gen chips to drive double-digit growth in core markets

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Dutch semiconductor supplier ASM International said on Tuesday it expects its gross margins to be 46%-50% between 2021 and 2025 on the back of its next-generation chips.

ASMI also raised its third-quarter order intake guidance to over 600 million euros ($702.84 million), compared to previous guidance of 510 million – 530 million, boosted by a strong demand in the logic and foundry sector.

“Key inflections in next generation semiconductor devices such as complex 3D architectures and new materials, are expected to drive double digit growth in ASM’s key markets,” Chief Executive Benjamin Loh.

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Companies like ASMI and peers ASML and BESI are benefiting from the global demand for semiconductors used in products ranging from cars to computers and smartphones.

ASMI, which anticipates its revenue in the range of 2.8 billion euros ($3.28 billion) to 3.4 billion euros ($3.98 billion) by 2025, also said it would expand its manufacturing facility in Singapore with an aim to make it production-ready by early 2023 .

The firm has previously said it expected further revenue growth this year on the back of strong chip demand despite pandemic-related supply chain challenges.

ASMI, which hosts its investor day on Sept. 28, also targets net zero emissions by 2035 and 100% renewable electricity by 2024.

($1 = 0.8537 euros) (Reporting by Anait Miridzhanian; Editing by Tom Hogue and Louise Heavens)