ASM International, based in the Netherlands, has lowered its revenue forecast. Its share price fell by almost 6 percent. However, ASM is sticking to its prediction of achieving revenue of more than €5.7 billion by 2030. This will require annual growth of 12 percent.
Customers losing ground in AI race
The Dutch company attributes the setback to lower-than-expected demand for equipment for the production of advanced chips. Orders for ASM’s chip machines have lagged behind after key customers lost ground in the artificial intelligence market to competitors.
Intel, a major customer of ASM, has adopted a more cautious spending policy despite attracting investors. In July, the company announced that it was canceling several factory projects. Such a retreat by a chip manufacturer affects not only ASM but also other deep tech players in the Netherlands, such as packaging specialist Besi from Duiven and Nearfield Instruments from Rotterdam.
Setback after strong growth
ASM expects revenue growth for 2025 to be at the lower end of the previously stated range of 10 to 20 percent, in constant currency. The company sees the third quarter remaining in line with previous expectations, but warns of a downturn in the fourth quarter.
Revenue in the second half of 2025 is expected to be 5 to 10 percent lower than in the first half, according to ASM. This expected decline is in stark contrast to a year ago, when ASM reported growth of 56 percent.
ASM shares fell 5.9 percent to 471.10 euros on Monday. It was the biggest one-day drop since July, according to Bloomberg. The share price has already fallen by around 15 percent this year. The announcement came just before Tuesday’s investor day, where ASM will explain its strategy for the coming years.