Dutch semiconductor equipment maker ASM International has raised its revenue forecasts after record quarterly sales, putting it three years ahead of its original growth plans.
The company expects revenue to exceed €5.7 billion in 2027, reaching a 2030 target as chipmakers continue investing heavily in increasingly complex manufacturing processes.
ASM reported third-quarter revenue of €1.16 billion, up 44 per cent in constant currencies from the previous year. The figure exceeded analysts’ expectations of approximately €1.10 billion.
The company’s equipment deposits extremely thin layers of materials onto silicon wafers, a process becoming increasingly important as semiconductor manufacturers move toward smaller transistors and more complex chip structures.
ASM has established a strong position in atomic layer deposition, which lets manufacturers build films with precise control over thickness and composition. Such precision is essential for leading-edge logic processors and advanced memory.
Investment in 2nm manufacturing drove the company’s latest performance, while customers working on future 1.4nm processes have begun placing significant orders.
ASM said it expects its addressable equipment market at 1.4nm to be at least double-digit percentage larger than at 2nm, with the company anticipating further market-share gains.
Memory manufacturers have also been spending more heavily, particularly on equipment for high-bandwidth memory and advanced DRAM production.
The mature logic and foundry business remained healthy, supported by demand from Chinese semiconductor manufacturers, even as the most advanced customers concentrated on their next-generation production technologies.
ASM recorded a gross margin of 52 per cent during the quarter, while its adjusted operating margin reached 33.4 per cent. Adjusted net earnings rose €109 million year on year to €315 million.
For the fourth quarter, the company expects revenue of approximately €1.23 billion at constant currencies, with a possible variation of five per cent. That compares with analyst expectations of around €1.18 billion.
The company forecasts full-year 2026 revenue growth of approximately 35 per cent at constant currencies, with equipment revenue expected to increase by more than 40 per cent.
ASM has expanded beyond its established deposition technologies by introducing XP8 Vertos Flowable Carbon, a plasma-enhanced chemical vapour deposition process designed to meet increasingly difficult patterning requirements.
The company says the technology has already entered high-volume manufacturing and could provide another growth source as manufacturers develop more complex three-dimensional logic and memory structures.
However, the expanding order book brings its own problems. ASM warned that semiconductor equipment supply chains are becoming increasingly constrained, potentially limiting its ability to deliver machinery as quickly as customers want it.
The company has authorised a new €300 million share buyback programme after completing a €150 million repurchase scheme during the third quarter. Under the previous programme, it bought 185,522 shares at an average price of €808.53 each.
