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Chipmaker ASM beats first-quarter targets, sees market outperformance in 2019

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By Reuters

(Reuters) – Dutch semiconductor supplier ASM International on Wednesday reported first-quarter revenue of 249 million euros (£216 million) and an order intake of 235 million euros, both exceeding its own expectations.

The high order intake was again driven by ASM’s fabrication and logic semiconductor businesses, reflecting its solid position in these segments, CEO Chuck del Prado said.

Analysts polled by Reuters had expected revenue of 235.2 million euros and orders at 211.8 million euros.

For the second quarter, the chipmaker expects revenue between 230 million and 250 million euros, with bookings between 240 million and 260 million euros on a currency comparable level, it said.

For 2019, general expectations are still that the wafer fab equipment market will decline, while logic chips and fabrication are expected to stay healthy in 2019 as compared to the memory segment, ASM said.

Semiconductor firms have recently been hit by trade friction between the United States and China, which contributed to a slowdown in the car business, and the smartphone market including Apple cooling after years of headlong growth.

Based upon this current market view, the company expects to significantly outperform the market in 2019, it said.

(Reporting by Zuzanna Szymanska in Gdynia; Editing by David Goodman and David Evans)