ASM’s new orders dragged by China slowdown though margins improve

Investting.com --ASM International reported lower third-quarter orders as Chinese chipmakers scaled back spending, though profitability stayed strong on higher-margin sales and tight cost control.

New bookings fell 17% from a year earlier at constant currencies to €637 million, as demand from China weakened following export restrictions and a strong first half. Orders were down 7% from the previous quarter.

Revenue rose 8% year-on-year at constant currency to €800 million, landing at the top end of the company’s guidance, while gross margin improved to 51.9% from 49.4%.

Chief Executive Hichem M’Saad said revenue growth was driven by advanced logic and foundry sales, though total orders reflected “mixed market conditions.”

The operating margin held at a robust 30.9% as ASM lifted R&D spending by 10% and cut selling and administrative costs.

Bookings from advanced logic and foundry customers rose from the prior quarter but remained below expectations.


Demand for power, analog and wafer equipment stayed weak, while orders tied to advanced DRAM for high-bandwidth memory were stable. ASM expects orders to bottom in the fourth quarter before improving in 2026 as logic and DRAM investments recover.

The company guided fourth-quarter revenue between €630 million and €660 million, implying a slowdown from the third quarter.

Full-year 2025 growth is projected near 10% at constant currency.

ASM completed a €150 million share buyback in July and reiterated its long-term target for annual revenue growth of at least 12% through 2030, supported by chip advances such as 1.4-nanometer and 4F² technologies.

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