ASMI plans expansion as it sees more interest in chips

  • Develop sites in Finland, United States, South Korea
  • An annual turnover of 2.8 to 3.4 billion euros by 2025
  • Raises order intake forecast for the third quarter to over € 600 million

Sept. 28 (Reuters) – Dutch semiconductor equipment maker ASM International (ASMI.AS) plans to step up innovation and production, it said on Tuesday, predicting that the digitization of everyday life would lead to a sharp increase in the use of chips.

Groups like ASMI and its peers ASML (ASML.AS) and BESI (BESI.AS) are benefiting from global demand for semiconductors used in products ranging from cars to computers and smartphones.

The company, which manufactures equipment used to deposit ultra-thin layers of material on computer chips during their manufacturing process, said it plans to expand its sites in Finland, the United States and Korea. South.

It also announced that it will expand its manufacturing facility in Singapore with the aim of making it production-ready by early 2023.

ASMI did not say how much it would spend on the expansion.

“There could be some sovereign government efforts that could add new investments, but this is something that is still ongoing, nothing has yet been fully confirmed,” CEO Benjamin Loh said at the premiere. company investor day.

To deal with a chip shortage that has exposed its dependence on Asia, the European Union is pushing for multibillion-dollar investments to double its share of global chip production over the course of the next decade.

CFO Paul Verhagen also said ASMI is scanning the market for merger and acquisition opportunities.

The company projects annual revenue of 2.8 to 3.4 billion euros ($ 3.3 to 4.0 billion) by 2025, up from 1.3 billion euros in 2020, with a gross margin of 46% to 50% between 2021 and 2025.

It also raised its order intake forecast for the third quarter to more than 600 million euros from 510-530 million previously, driven by strong demand in the logic and foundry sector.

ASMI, which reduced its greenhouse gas emissions by 15% between 2016 and 2020, is targeting net zero emissions by 2035 and using 100% renewable electricity by 2024.

The company expects fourth quarter revenue to be higher than third quarter if there are no new supply chain issues, adding that in October it will have a better view.

($ 1 = € 0.8537)

Reporting by Anait Miridzhanian Editing by Louise Heavens and Mark Potter

Our Standards: Thomson Reuters Trust Principles.

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