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ASMI expects revenue to grow despite supply chain woes

By Reuters

-Dutch semiconductor supplier ASM International expects revenue to grow in the third and fourth quarters on the back of strong chip demand, despite pandemic-related supply chain challenges that continue to impact the company’s earnings.

“Supply chain conditions further tightened during the quarter, also due to new lockdown measures in parts of Southeast Asia”, Chief Executive Benjamin Loh said in a statement.

Semiconductor groups struggle to meet chip demand, having faced supply chain challenges amid a global shortage in semiconductor chips.

The firm, whose customers include Taiwan Semiconductor Manufacturing (TSMC) and Intel Corp, reported record quarterly orders at 515.7 million euros, up 73% year on year, thanks to strong demand for logic and foundry business as well as its atomic layer deposition (ALD) technology.

Last week, chipmaker Intel said it still faces supply chain constraints and gave an annual sales forecast that implied a weak end of the year.

ASMI now expects third-quarter revenue of 400 million to 430 million euros ($473.20 million to $508.69 million), compared with 411.7 million euros in the previous quarter, and expects even higher sales in the fourth quarter.

The firm sees its third-quarter orders in the range of 510 million-530 million euros.

The group also said it is launching the 100 million-euro buyback program, previously announced in April.

($1 = 0.8453 euro)