Weak Chip Equipment Demand Pushes ASM Revenue Down

According to reports, Dutch semiconductor equipment maker ASM has lowered its revenue forecast for the second half of the year due to weaker-than-expected demand from some clients, causing the company's stock to drop.

On September 23, ASM stated in a briefing to investors that its 2025 revenue growth, calculated at constant exchange rates, is now expected to land at the lower end of the previously forecasted 10–20% range. While third-quarter revenue is expected to meet earlier projections, the company anticipates a decline in the final quarter.

ASM expects second-half 2025 revenue to fall 5–10% compared to the first half, citing weaker demand for equipment used in producing advanced logic chips such as processors. The slowdown is linked to major clients losing ground in the AI market to competitors, alongside reduced demand in other semiconductor segments, which has led to a drop in orders for ASM's equipment.

Despite ASM's key client Intel recently drawing attention from high-profile investors, the company has maintained a more conservative spending approach, even canceling some factory projects in July.

Looking ahead, ASM projects sales to surpass €5.7 billion ($6.7 billion) by 2030, implying a minimum annual growth rate of 12%.