ASM International Q2 Orders Fall 4% Amid Chip Market Weakness

ASM International reported second-quarter orders of €702 million ($825 million), falling 4% year-over-year and missing analyst expectations of around €837 million due to lower bookings from its advanced logic and foundry segments. Despite the weaker orders, the company posted revenue growth of 23% to €835.6 million and a net profit increase to €202.4 million, surpassing forecasts. The decline in bookings reflects challenges faced by major chipmakers like Intel and Samsung, who are delaying projects and cutting jobs amid a mixed market environment, including tariff uncertainties and geopolitical tensions under President Trump's trade policies. ASM remains optimistic about the future, expecting orders to pick up in the third quarter and aiming for annual revenue growth in the midpoint of their 10% to 20% guidance range. The company continues to benefit from demand for advanced chip technologies, particularly gate-all-around transistors that enhance chip performance. However, the overall semiconductor equipment sector faces headwinds, and ASM's larger rival ASML has also warned of potential order delays linked to trade uncertainties.