ASMI ups guidance as AI, Chinese demand remain strong

By Nathan Vifflin

(Reuters) -Chip-making equipment supplier ASM International (ASMI) forecast on Tuesday higher fourth-quarter guidance after third-quarter bookings beat expectations as AI continues to drive high-end orders and Chinese orders fall less than anticipated.

Europe's second-largest equipment supplier said demand for its AI-related manufacturing processes and memory was sustained in the third quarter, while both sales and orders from China were higher than expected.

"AI continues to be the dominant semiconductor end market driver, while recovery in other markets such as PCs and smartphones is still sluggish, and the automotive/industrial segments remain in a cyclical downturn," the company said in a statement.

ASMI's customers, the likes of chipmaker TSMC, use its equipment to enable the next generation of AI chips, and have seen a sustained boom in demand.

The Dutch company now forecasts fourth-quarter sales in a range between 770 million euros and 810 million euros ($832.14 million to $875.37 million) resulting in a 15% increase for the second half of the year compared to the first half, while third-quarter bookings reached 815 million euros, beating estimates of 786 million euros, according to a company-compiled consensus.

($1 = 0.9253 euros)

(Reporting by Nathan Vifflin; editing by David Evans)

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