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According to a recent company statement, Dutch semiconductor equipment manufacturer ASM reported stronger-than-expected first-quarter orders, driven by surging demand for chipmaking tools in AI-related sectors and robust sales in China.

For the three months ending March 2025, ASM's order intake rose by 14% year-over-year at constant currency, reaching €834 million (approximately $951 million). This exceeded the average analyst forecast of €808 million, underscoring ASM's resilient performance amidst a dynamic global tech landscape.

ASM specializes in advanced deposition equipment essential for next-generation semiconductor production. The company highlighted that demand from artificial intelligence applications remains solid, even as most other segments face muted activity. ASM also pointed to growing momentum in Gate-All-Around (GAA) technology—an advanced chip architecture that significantly enhances device performance—as a key growth driver.

In recent quarters, semiconductor equipment suppliers, including ASM, have benefited from the global AI boom, which has sparked increased capital expenditure across the tech industry. However, uncertainties surrounding U.S. trade policies have raised questions about the long-term trajectory of chip demand. Earlier this month, ASML, another Dutch equipment maker, cautioned that the full impact of recent tariff announcements remains difficult to quantify. Eindhoven-based NXP Semiconductors echoed similar concerns, citing a "very uncertain" macro environment.

Commenting on the company's outlook, ASM CEO Hichem M' Saad stated that full-year gross margins are expected to land in the upper half of the firm's 46–50% target range, excluding the direct effect of tariffs. He acknowledged the unpredictability of trade policy impacts but emphasized ASM’s intention to leverage its global supply chain and diversified manufacturing footprint to absorb potential cost pressures—while passing some of those costs on to customers when necessary.

To better reflect its exposure to currency volatility, especially given its significant U.S. dollar-denominated revenue, ASM has revised its performance guidance to focus on growth at constant currency rather than absolute euro values. For 2025, the company now anticipates annual revenue growth of 10% to 20%.

Despite this positive momentum, ASM reaffirmed earlier warnings that new U.S. export restrictions will likely reduce revenue from China in 2025. The company estimates that sales to China will account for approximately 20% of its total equipment revenue this year.