ASM International Sees Strong Order Growth in Q4 Driven by China and Cutting-Edge Technology

Amsterdam, Netherlands — Semiconductor equipment maker ASM International reported significantly higher than expected orders and revenue in the fourth quarter of 2025, reflecting renewed demand from Chinese customers and steady sales in advanced logic and foundry technologies. Analysts said this trend points to a stabilization in global chip equipment demand and could support growth prospects into 2026.

Order Intake Beats Market Expectations

On Monday, ASM International announced preliminary bookings of around €800 million for Q4, well above analysts’ consensus forecasts of approximately €669 million. This order performance exceeded market expectations and demonstrates stronger momentum toward the end of the year.

The Dutch company attributed the better-than-expected results to a rebound in orders from China — historically one of the largest buyers of semiconductor manufacturing equipment — and solid business from advanced logic and foundry segment customers.

China Demand Rebounds

China’s semiconductor demand had declined earlier in 2025, hurting industry spending on capital equipment. However, ASM’s latest results suggest that Chinese customers returned to the market late in the quarter, helping drive stronger bookings. Analysts say this may indicate that capacity digestion — the process where fab operators finish using previously purchased equipment before buying more — is less severe than initially feared.

Revenue Also Tops Estimates

In addition to the strong bookings, preliminary revenue for the quarter was reported at about €698 million, also above analyst estimates near €656 million. This performance reinforces the view that ASM’s business improved meaningfully as 2025 drew to a close.

Strong revenue growth in both orders and sales suggests that the company is navigating a recovery in the semiconductor industry more successfully than many had anticipated. It also provides confidence that 2026 may begin on firmer footing, even if demand conditions remain uneven across geographies.

Advanced Logic and Foundry Strength

Beyond China, the advanced logic and foundry segments contributed materially to ASM’s performance. These areas include equipment used for manufacturing chips at leading technology nodes — such as processors and system-on-chip designs used in artificial intelligence, data centers, and high-performance computing.

Demand from these customers helped balance regional differences and supported higher-margin business, bolstering overall order trends. This diversification across customer categories was highlighted as a key positive factor by industry analysts.

Updated Guidance and Market Outlook

Along with the strong preliminary figures, ASM lifted its outlook for the first quarter of 2026. The company now expects revenue to increase on a constant currency basis compared to the fourth quarter, signaling confidence in continuing momentum. Previously, ASM had forecast a slower start to the year.

ING analyst Marc Hesselink described the preliminary results as “highly supportive for sustained growth throughout full-year 2026,” further indicating that the chip equipment maker is positioned for ongoing improvement.

Industry Context: Semiconductor Equipment Demand

The semiconductor industry has faced inconsistent demand over the past year, with periodic slowdowns in spending on capital equipment. Factors such as inventory adjustments, geopolitical tensions, and shifting technology investments have created a complex environment for manufacturers and suppliers alike.

Nevertheless, renewed strength in China orders — coupled with resilient demand for advanced logic and foundry equipment — offers hope that a broader recovery may be underway. This trend aligns with broader industry signals that demand for cutting-edge logic chips and capacity expansion could support growth into 2026 and beyond.

Next Financial Report and Company Plans

ASM International has scheduled its full fourth quarter and full-year earnings report for March 3, 2026. Investors and analysts will be watching those results closely for confirmation of the company’s preliminary figures and insights into future strategy.

The strong finish to 2025 gives ASM and its stakeholders grounds for optimism as the company navigates evolving global demand dynamics in the semiconductor equipment market.

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