Chip machine manufacturer ASM International (ASM) has exceeded market expectations with a strong fourth quarter. The company managed to bring in as much as 678 million euros worth of new orders, a remarkable performance mainly due to continued strong demand from China. This was announced yesterday during a presentation of figures for the final quarter of 2023.
The figures seem to reiterate that demand for chip manufacturing equipment remains unabatedly strong, especially from China. The order intake of 678 million euros in the fourth quarter of 2023, shows robust growth compared to the 627.4 million euros in new orders in the previous quarter. The figures are indicative not only of sustained demand, but also of ASM’s strategic position in the world of semiconductor manufacturing.
Why this is important:
Figures from semiconductor company ASM again show the growing impact of Chinese market demand on the sector.
Technological innovation as growth engine
This growth is partly explained by ASM’s commitment to gate-all-around (GAA) chip technology, an advanced method that increases chip efficiency. The company has big names such as Intel and TSMC among its clients, both of which have plans to implement this technology. This is an important development as demand for high-performance chips continues to grow, driven by an increasingly connected and digital world.
China’s role in ASM’s growth
Despite restrictions on the export of the most advanced chip machines to China, the country continues to invest in the production of less advanced chips. ASM benefits from this thanks to their supply of machines used in these production processes. Continued Chinese demand has a significant share in the company’s results and looks set to continue for the first half of 2024.
Cautious expectations for the future
The outlook for ASM is mixed. On the one hand, the company expects to benefit from continued strong demand from China in the first half of the year, but on the other hand, it anticipates a weak market that will be similar to the second half of 2023. ASM predicts a gradual recovery in the second half of this year and a significant increase in 2025.
ASM’s strong performance in the fourth quarter of 2023, particularly due to growing demand from China, successful deployment of new technologies such as GAA, and strategic leadership changes, outlines a company that is adapting and thriving in a rapidly changing market. With cautious optimism, ASM looks to the future, focusing on recovery and growth in an industry at the center of a modern, digitized society.
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