ASM shares fall sharply after chipmakers’ troubles weigh on bookings

The decline in orders was mainly due to lower advanced logic and foundry bookings. Photographer: Piotr Swat/SOPA Images/LightRocket/Getty Images

ASM International NV shares fell after its second-quarter orders missed expectations, after some chipmakers’ struggles undermined demand for the Dutch company’s semiconductor equipment.

Orders fell 4% from a year earlier at constant currency to €702 million ($824 million), ASM said in a statement Tuesday. That compares with the average analyst estimate of €837 million, according to data compiled by Bloomberg.

Bookings of ASM’s chipmaking machines have flagged as the semiconductor businesses of some of the industry’s most renowned names, including Intel Corp. and Samsung Electronics Co., cede leadership in the artificial intelligence market to competitors. Intel plans to slash jobs and has delayed some projects, while Samsung’s profit in the June quarter fell for the first time since 2023.

Shares fell as much as 7.1% to €467.80 in Amsterdam on Wednesday, the biggest decline since April 7. They are down 32% this year.

The decline in orders was mainly due to lower advanced logic and foundry bookings, even as sales for its leading-edge machines were robust, ASM said.

The company also attributed the decline in bookings to the inconsistent nature of orders in the period. Larger Dutch semiconductor equipment maker ASML Holding NV plans to stop reporting the figure next year, arguing orders don’t always reflect its business momentum.

What Bloomberg Intelligence Says
ASM International attributes a 16% miss in 2Q bookings to lower advanced logic and foundry orders, which is likely due to a capital spending cut by Intel as we had previewed. Better-than-expected demand in the Chinese market couldn’t fully offset the hit. Tariffs might have also played a role in overall order weakness due to chipmakers’ general hesitancy in investments. — Bloomberg Intelligence senior analyst Ken Hui

ASM expects revenue growth at constant currencies this year to be around the midpoint of the guidance range of 10% to 20%. However, it added that uncertainty around global trade and geopolitical tensions remains high.

“The order miss in addition to the tariff-related risks that are not yet factored in could put pressure on the stock,” Citi analysts including Andrew Gardiner said in a note.

Based in Almere, Netherlands, ASM makes deposition tools that are used to produce advanced chips. The firm benefited from a shift to so-called “gate-all-around,” or GAA, technology, a cutting-edge chip architecture it works with that increases device performance.

The company said that the underlying trend in advanced logic and foundry, particularly in GAA, remains healthy.

Demand in the Chinese market held up better than initially expected in the first half, the company said. It now expects equipment sales to be near the top end of its previous guidance. ASM had said China would contribute a percentage of overall revenue in the “low-to-high” 20s. ASM faces some export curbs to the country by the US government.

Semiconductor-equipment companies including ASM are caught in the middle of a geopolitical standoff between China and the US. Washington has long sought to crimp Beijing’s technology ambitions and prevent it from gaining access to artificial intelligence chips that could bolster its military capabilities.