ASM International has raised its 2027 revenue forecast to more than €5.7B, up from a previous target of above €4.6B, as memory makers and companies building advanced chips for artificial intelligence expand capacity. The increase amounts to roughly 24%, and the Dutch chip-equipment supplier said it now expects to reach its 2030 sales goal three years early.
The company also announced a share buyback of up to €300M. The update came alongside third-quarter results that showed record revenue, with sales rising 44% at constant currencies to €1.16B. Net income was €308.1M. Both figures beat analysts’ estimates, and ASM’s US-listed shares rose 6.7% on Tuesday.
Key facts
- ASM raised its 2027 revenue forecast to more than €5.7B from above €4.6B.
- The new target is about 24% higher and puts ASM three years ahead of its 2030 goal.
- Third-quarter revenue rose 44% at constant currencies to a record €1.16B.
- Net income was €308.1M, and both revenue and profit beat analyst estimates.
- ASM plans to buy back up to €300M of its shares.
- US-listed shares rose 6.7% on Tuesday.
- Customers include TSMC, which plans capex of up to $64B this year, and Intel.
- ASM said its supply chain is stretched, but it is working with suppliers and customers to ship faster.
The forecast raise is a sign of how quickly spending is moving through the semiconductor supply chain. AI data centres require large numbers of accelerators, high-bandwidth memory and advanced networking chips. Building those components requires enormous wafer-fabrication capacity, and that capacity depends on specialized equipment. ASM does not design AI models or sell chips. It sells the machines that help chipmakers deposit extremely thin layers of material on silicon wafers, a critical step in manufacturing modern devices.
That position makes ASM one of the European companies benefiting from the AI investment cycle by supplying the tools rather than the end products. The company’s equipment is used in deposition processes where films are laid down with precision at the atomic or near-atomic scale. These layers can serve as insulators, conductors, barriers or structural elements inside a chip. As chip designs become more complex, the number of deposition steps tends to rise, and control over film thickness and uniformity becomes more important. The same trend applies to advanced memory, where manufacturers are stacking more layers and pushing density higher.
Why deposition tools matter in the AI build-out
Semiconductor manufacturing is a sequence of hundreds of steps that add, remove and pattern materials. Lithography receives much of the public attention because it defines the smallest features, but deposition and etching are equally important. A chip cannot function if its insulating and conducting layers are uneven, contaminated or too thick. ASM’s tools address that part of the process. They help customers create thin films for logic chips, memory devices and other advanced components.
AI chips place particular demands on the supply chain. Accelerators used in data centres need large dies, high-performance transistors and fast connections to memory. High-bandwidth memory, which is often packaged close to the processor, requires advanced manufacturing and packaging techniques. Memory makers are investing to increase output of these products, while foundries are expanding capacity for advanced logic. Those expansions translate into orders for equipment makers such as ASM, even if the final demand is uncertain or cyclical.
The company’s customers include TSMC, the world’s largest contract chipmaker, and Intel. TSMC plans to spend up to $64B this year after reporting a sixth consecutive record profit. That level of capital expenditure is a direct signal of demand for the tools and services that support leading-edge manufacturing. Intel is also investing in new capacity and advanced process technologies, although its foundry strategy has faced its own challenges. For ASM, a customer base that includes the largest logic manufacturers gives it exposure to the most demanding chip designs.
Results show record revenue and stronger visibility
ASM’s third-quarter revenue rose 44% at constant currencies to a record €1.16B. Net income came in at €308.1M. The company said both results beat analysts’ estimates. The revenue record is notable because equipment makers often face lumpy quarterly patterns as large orders are delivered and recognized. A record quarter, combined with a higher 2027 forecast, suggests that customers are not merely maintaining existing plans but accelerating them.
Chief executive Hichem M’Saad said capacity remains tight across the customer base, and customers are moving quickly to increase output. That comment points to a market in which demand is outpacing the ability of chipmakers to add capacity. When customers are desperate to increase output, they tend to order equipment earlier and work closely with suppliers to shorten delivery times. That can improve visibility for equipment makers, although it can also strain their own operations.
ASM warned that its supply chain is stretched. The company said it is working with suppliers and customers to ship faster. Supply-chain constraints have been a recurring theme across the semiconductor equipment industry. Advanced machines contain thousands of components, including precision optics, vacuum systems, pumps, sensors and specialized electronics. Ramping production quickly is not simply a matter of adding factory space. It requires suppliers to increase output, hire and train workers, and resolve bottlenecks that may be several layers removed from the final tool.
Industry-wide capacity constraints
The pressure is not limited to ASM. Fellow Dutch toolmaker ASML said this month that it cannot meet demand in 2027 or 2028 at current output levels. ASML is a different part of the supply chain, best known for lithography systems, but its comment reinforces the same message: demand for leading-edge chipmaking equipment is running ahead of supply. When one of the most important equipment makers says it cannot satisfy demand, chipmakers have to plan further ahead and compete for limited capacity.
That dynamic can benefit equipment suppliers through higher order backlogs and stronger pricing power. It can also create risk. If customers order too aggressively and later adjust plans, backlogs can shift. Semiconductor capital spending has historically been cyclical, and equipment makers are exposed to the timing of fab construction and tool installation. The current AI-driven wave appears strong, but it is still part of a cyclical industry. ASM’s raised forecast reflects confidence, not certainty.
The company’s buyback of up to €300M adds another signal. Share repurchases can indicate that management sees cash generation as durable and believes the shares are undervalued. They also return capital to investors at a time when the company is investing to meet demand. ASM’s US-listed shares rose 6.7% on Tuesday, suggesting that investors focused on the stronger forecast and record quarterly revenue rather than the supply-chain warning.
Europe’s equipment makers remain central to the AI economy
ASM’s update also highlights Europe’s role in the global semiconductor supply chain. The continent is home to several important equipment and materials companies, even though it has fewer leading-edge chip manufacturers than Asia or the United States. These suppliers sit at the foundation of the industry. Their tools are required by fabs in Taiwan, South Korea, the United States and elsewhere. As AI spending rises, the benefits flow back through the equipment ecosystem.
For ASM, the opportunity is tied to two broad trends. The first is the build-out of AI infrastructure, which is driving demand for accelerators, memory and networking chips. The second is the increasing complexity of chip manufacturing, which raises the number of deposition steps and the value of precision equipment. Both trends favor suppliers with deep technical expertise and close relationships with leading chipmakers. ASM’s raised 2027 forecast suggests that management expects those trends to remain strong through the medium term.
The company now expects revenue of more than €5.7B in 2027, compared with a previous forecast of above €4.6B. That is a large increase for a single update, and it puts ASM on track to hit its 2030 target three years early. The forecast does not guarantee that demand will remain at current levels, but it does show that customers are committing to capacity expansions. In a capital-intensive industry, those commitments are among the most important leading indicators.
ASM’s supply chain will be a key variable in how much of that demand it can convert into revenue. The company said it is working with suppliers and customers to ship faster, and the industry-wide constraints described by ASML suggest that the challenge is broader than one company. For chipmakers, the message is that equipment capacity may remain tight. For investors, the message is that the AI boom is supporting not only chip designers and data-centre operators but also the less visible companies that make the machines required to produce advanced semiconductors.