Chip supplier ASMI reported a sharp increase in revenue and profit in the first quarter of this year. ASMI received fewer new orders this quarter due to weakening market conditions.
The orders received amounted to over 647 million euros, against the almost 706 million euros of the previous year. Due to uncertain economic conditions, large chip companies have become more cautious with their investments in new manufacturing capacity, and suppliers such as ASMI are feeling the pinch.
“The question is when the markets currently under pressure will recover”
“We see the market weakening slightly more than we anticipated three months ago,” says CFO Paul Verhagen. ‘The memory chip market, in particular, is under great pressure. We expected that now we would see a cautious recovery there, but that’s not the case.’
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On the other hand, according to Verhagen, the customers making the powerful computing chips continue to invest heavily. “But it also applies here that the situation is slightly lower than expected a quarter ago.” According to Verhagen, this is reflected in the orders.
Turnover figures
The turnover increased significantly, not least because the systems that were to be delivered in the second quarter were delivered on customer request in the first three months of this year. Turnover was 710 million euros, against 517 million euros the previous year. A figure higher than previously expressed expectations for a turnover of between 660 million and 700 million euros, according to ASMI.
According to Verhagen, the impact of Chinese export blockades appears to be limited to 3-4% of turnover. How things will go in the near future all depends on how demand develops, says the CFO. The only question is when the markets currently under pressure will recover. This is still uncertain.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
