ASM International’s new orders tumble 47% in Q2

Dutch semiconductor equipment maker ASM International said on Tuesday new orders almost halved in the second quarter due to softening demand and delays at some customers’ manufacturing facilities.

The company, which supplies wafer processing equipment to semiconductor makers, said new orders fell to 485.8 million euros ($536.2 million) from 942.7 million euros in the same period a year earlier.

It also reported second-quarter net earnings of 151.2 million euros, down from 160.4 million a year ago.

The semiconductor industry, a flashpoint of geopolitical tensions between China and the United States, has been experiencing a slowdown this year amid a shortage of specialist workers, supply chain disruptions and a faltering global economy.

The world’s largest contract chipmaker, TSMC, forecast last week a drop of around 10% in 2023 sales and flagged investment spending at the low end of estimates, sending U.S. and European chip stocks into the red.

“Demand in the memory market continued to be weak in Q2 and is not expected to recover in the remainder of the year”, ASMI said in a statement.

The company forecast third-quarter revenue of 580-620 million euros on a currency-comparable level, down from 675.5 million euros a year earlier. Reuters