ASM International, a leading semiconductor company, has revealed a 13 percent decrease in revenue, amounting to €632.9 million, during the fourth quarter of 2023. Despite this decline, the company highlighted robust sales within the power/analog/wafer segment as a supportive factor for fourth-quarter revenue.
Orders for ASM International totaled €678 million in the fourth quarter of 2023, marking an 18 percent decrease compared to the same period the previous year. This decline was attributed to reduced orders for GAA pilot-line and continued strength in demand from China.
In a broader context, ASM International’s full-year revenue reached a record high of €2.6 billion in 2023, surpassing the slightly diminished WFE market. However, the company faced challenges with declining sales in the memory segment due to reduced investments, despite sustained demand for high-performance DRAM. Additionally, the logic/foundry segment experienced a downturn, influenced by weak market conditions and delays in new customers’ fab.
On a brighter note, ASM’s silicon carbide (SiC) Epi business exhibited strong growth throughout 2023, meeting revenue targets comfortably and yielding synergies. Looking ahead, ASM anticipates continued strong performance in this sector in 2024, with additional customer selections and multiple tool orders expected.
Benjamin Loh, CEO of ASM International, reflected on the company’s achievements in 2023, noting a 13 percent sales increase at constant currencies despite market softening, marking seven consecutive years of double-digit growth.
In a strategic move, ASM announced plans to invest €300 million in a larger R&D center in Scottsdale, Arizona, aiming to bolster product development efforts in ALD and Epi technologies. Furthermore, the company increased its utilization of renewable electricity to 88 percent in 2023 and aims to reach 100 percent by 2024.
Looking forward, ASM anticipates first-quarter revenue in the range of €600-640 million, with similar projections for the second quarter. The company expects revenue to rise in the second half of 2024 compared to the first half.
While the revenue contribution from the Chinese market is expected to be significant in the early part of the year, ASM foresees a normalization thereafter. Additionally, strong performance is anticipated for the SiC Epi business in 2024, with expectations of benefiting from a rebound in the WFE market in 2025, leading to forecasted revenue of €3.0-3.6 billion for 2025.
In an executive transition, ASM announced on February 12, 2024, that Benjamin Loh will retire as CEO following the AGM on May 13, 2024. ASM today said Benjamin Loh will be succeeded by Hichem M’Saad, who currently serves as a member of the Management Board and Chief Technology Officer.
