China Pauses Investments in the Chip Sector and is Looking for an Alternative

Order intake from Dutch chip supplier ASM International (ASMI) will be significantly higher in the third quarter than previously expected. ASMI said this in the run-up to its investor day when investors are updated about the strategy.


In addition, ASMI announced that it wants to be climate neutral by 2035. In 2024, the company wants to start working entirely on sustainably generated electricity.

ASMI is taking advantage of global chip shortages and major chip manufacturers’ massive investment plans to address those shortages, thus driving demand for ASMI’s products. The Almere-based company, for example, supplies systems for processing wafers, the thin discs from which semiconductors are made.

When announcing the figures for the second quarter, ASMI had issued a forecast for an order intake in the third quarter between 510 million to 530 million euros. However, the company now thinks that this amount will exceed 600 million euros. In the second quarter, orders also rose faster than the company itself had expected.

ASMI further indicated that the target for 2025 is a turnover of between 2.8 billion and 3.4 billion euros. The production capacity of ASMI’s Singapore plant will also be further increased to meet strong demand. This should be ready in 2023. CEO Benjamin Loh speaks of strong prospects for ASMI.

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