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ASM International expects stable revenue on Q4 boost for H1 2024

Semiconductor equipment manufacturer ASM International on Tuesday forecast stable revenue for the first half of 2024 after a rise in orders in the fourth quarter of 2023 driven partly by its gate-all-around (GAA) chip-making technology.

The Dutch group reported fourth-quarter revenue of 632.9 million euros ($686 million), slightly below 724.8 million generated in the same period the year before, but within the company’s guidance range of 600-640 million.

Analysts’ average forecast in an LSEG poll was for 626.3 million euros.

New orders came in at 677.5 million euros, up from 627.4 million in the third quarter, helped by the GAA technology and sustained demand in China.

Some of the biggest sector names and ASMI clients like Intel, and the world’s largest contract chipmaker TSMC plan to adopt the technology, as they race to meet global demand for cutting edge chips that power everything from cars to computers and smartphones.

For the first quarter of 2024, ASM anticipates revenue within the same 600-640 million euro range, and a similar level in the second quarter. The last six months of 2024 could see stronger earnings, it said.

AMS’s sales in China should still be relatively high in the first part of the year, it said.

The group expects to benefit from a rebound of the wafer foundry equipment in 2025 after softer market conditions in the first part of this year.

It kept its 2025 revenue outlook of between 3 billion and 3.6 billion euros.

Upbeat updates last week from chip designer Nvidia, Intel and TSMC lifted European markets to record high.

ASM also plans to buy back up to 150 million euros within 2024-2025 and propose a regular dividend of 2.75 euros per share for 2023.

Last year the group was the best performer in the Dutch blue chip AEX index, amid optimism the equipment it sells will play an increasing role in cutting edge chips made by Taiwan’s TSMC. Reuters

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