ASM Q2 Orders Fall 4%, Miss Expectations

According to reports, Dutch semiconductor equipment maker ASM International reported lower-than-expected orders in the second quarter of 2025, citing reduced demand for advanced chipmaking tools due to challenges faced by several major clients.

In a statement released on July 22, ASM said Q2 orders totaled €702 million (approximately $825 million), a 4% year-over-year decline at constant exchange rates. This figure fell short of analysts' consensus estimate of €837 million, according to compiled data.

The slowdown reflects waning demand from leading semiconductor manufacturers, including Intel and Samsung Electronics, both of which are navigating strategic and operational shifts as they lose ground in the AI hardware race. Intel has announced workforce reductions and project delays, while Samsung recently reported its first quarterly profit drop since 2023.

ASM attributed the dip in orders primarily to weaker demand in advanced logic and foundry segments, although it noted strong sales for its cutting-edge systems. The company also cited inconsistent order timing as a contributing factor. This trend has prompted some competitors, such as ASML, to move away from reporting order figures altogether, arguing they no longer accurately reflect business momentum.

Senior analyst Ken Hui noted that ASM's weaker bookings align with expectations following Intel’s capital expenditure cuts. He added that although demand in China exceeded projections, it was insufficient to offset the broader decline. Hui also pointed to broader investment hesitation and potential tariff impacts as additional pressure points on the order pipeline.

Despite the order softness, ASM maintained its full-year revenue growth guidance near the midpoint of its 10%–20% forecast range. The company highlighted stronger-than-expected demand in China during the first half of the year and now anticipates full-year equipment sales to approach the upper end of its earlier guidance.

Nonetheless, ASM warned that uncertainty stemming from global trade dynamics and geopolitical tensions remains a significant risk for the industry.