US export restrictions weigh heavily on ASMI’s China sales

ASM International (ASMI) estimates that more than 40 percent of sales in China are affected by the new export control regulations imposed by the US. As a precaution, the Almere-based semiconductor equipment manufacturer refuses all orders pertaining to advanced technology covered by the restrictions. This is to protect company staff from the US, for whom it seems to be illegal to engage with China’s most advanced semiconductor companies.

Mostly as a result of impact on Chinese orders, ASMI’s Q3 bookings dropped 676 million euros, compared a record level of 943 million euros in Q2. “Excluding the reduction of impacted orders from China, the decrease in our Q3 orders compared to Q2 would have been much more moderate,” said ASMI CEO Benjamin Loh. China is a growth market for ASMI, responsible for 16 percent of sales year-to-date.