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Echoing ASML’s first-quarter results, ASM International posted higher-than-guided revenue but lower order intake, demonstrating that the semiconductor market is cooling. New orders “were still at a healthy level,” said ASM CEO Benjamin Loh, but six percent lower on a yearly basis and at constant currencies. The Almere-headquartered equipment manufacturer warns sales will slow down by 10 percent or more in the second half of the year, compared to the first half. Nonetheless, ASM expects to manage a single-digit revenue increase in 2023.
“Demand in the memory market further weakened in Q1 and is expected to remain at low levels in the remainder of the year. Logic/foundry demand for the advanced nodes is relatively more resilient, but recently we’ve also seen a number of push-outs in this segment reflecting softer end-market conditions and some delays in new customer fab readiness,” Loh commented. He predicts the wafer fab equipment market to drop by a “high teens percentage” this year.
Besi, being a back-end supplier, is ahead of ASM in the chip cycle. The company saw orders starting to decline as early as Q2 2022. There are no signs of recovery yet. “The assembly equipment market outlook for 2023 remains negative as we work through the current industry downturn,” said Besi CEO Richard Blickman.