Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ASM International NV (ASMIY, Financial) reported a strong revenue growth of 27% in Q4 2024, reaching EUR809 million, which was at the upper end of their guidance.
- The company achieved its eighth consecutive year of double-digit growth, with full-year sales increasing by 12%, outpacing the wafer fabrication equipment (WFE) market growth.
- Gross margin improved to 50.3% in Q4 2024, up from 47.9% in Q4 2023, reflecting a favorable sales mix.
- ASM International NV (ASMIY) maintained a strong market position in atomic layer deposition (ALD) and expanded its addressable market with the transition to gate-all-around technology.
- The company achieved 100% renewable electricity in its worldwide operations, contributing to a 52% decrease in combined Scope 1 and 2 greenhouse gas emissions in 2024.
Negative Points
- Memory sales, although increased year-on-year, were lower compared to the elevated level in Q3 2024.
- Power, analog, and wafer sales remained soft and were sharply lower compared to Q4 2023, reflecting ongoing cyclical downturns in these markets.
- The company expects a normalization in China sales in 2025, with a projected decrease in sales contribution from China.
- ASM International NV (ASMIY) anticipates a further weakening in the silicon carbide market in 2025.
- The company faces increased competition from Chinese players in the semiconductor equipment market, which could impact its market share.
Q & A Highlights
Q: Have you seen any changes in the situation in China over the past months, particularly regarding revenue expectations?
A: Our revenue projections for China remain unchanged. We haven't observed any significant changes in the projections made in recent months. (Hichem M'Saad, CEO)
Q: Can you confirm the momentum for gate-all-around (GAA) technology in 2025, especially given the low visibility in the second half?
A: We anticipate strong momentum for GAA in 2025, particularly with the 2-nanometer technology node. We don't foresee any changes in this area. (Hichem M'Saad, CEO)
Q: Regarding order intake, do you need a substantial increase in orders in Q1 or Q2 to reach the upper end of your range?
A: We don't guide on orders due to the unpredictable timing of orders. While Q4 orders were down as expected, we remain focused on our opportunities and don't provide specific guidance for Q1 and Q2. (Paul Verhagen, CFO)
Q: How do you see the opportunities for molybdenum and other new materials like cobalt and rhenium in the future?
A: Molybdenum is a new metal for logic and memory devices, and we have active engagements with customers. We expect more applications as technology transitions to smaller nodes. For other metals, we anticipate a shift to new metalization schemes, which aligns with our ALD capabilities. (Hichem M'Saad, CEO)
Q: Can you provide insights into your market share in ALD and how it might evolve?
A: Our market share in ALD remains strong, particularly with the transition to gate-all-around technology. We continue to see growth opportunities in this area. (Hichem M'Saad, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
