AMSTERDAM, Netherlands — ASM International NV, a leading provider of semiconductor manufacturing equipment, reported robust first-quarter results for 2026 on Wednesday, surpassing expectations with revenue growth fueled by surging demand in artificial intelligence applications and advanced chip production. The company, traded on the OTC market under the ticker ASMIY, announced revenue of 863 million euros for the quarter ended March 31, 2026, marking a 16 percent increase from the same period a year earlier and a 26 percent jump from the previous quarter.
During the earnings conference call, Victor Barinho, head of investor relations at ASM International, opened the discussion by thanking participants and outlining the agenda. 'We'll follow the usual agenda for today's call,' Barinho said. 'Paul will begin with a review of our first quarter financial results. I will then discuss market trends and our outlook, followed by the Q and A session.'
Paul Hagen, the company's chief financial officer, took the floor to detail the financials. The gross margin held steady at 53.3 percent, bolstered by a favorable product mix and ongoing cost reduction efforts. Hagen noted that the company anticipates margins to stay at the higher end of its 47 to 51 percent target range for the full year. This performance comes amid a broader recovery in the semiconductor industry, where ASM specializes in atomic layer deposition and other advanced processes critical for next-generation chips.
Strategically, ASM is positioning itself to capitalize on the booming demand for AI-driven semiconductors. Executives highlighted expansions in advanced packaging technologies and sustained momentum in sales to logic foundries and memory producers. 'The company's gross margin remained robust at 53.3%, supported by a favorable product mix and cost reduction initiatives,' according to the call transcript provided by Benzinga.
Looking ahead, ASM forecasted second-quarter revenue of approximately 980 million euros, with the latter half of 2026 expected to outpace the first half. Management expressed optimism despite persistent supply chain hurdles, particularly in sourcing critical components. They emphasized confidence in navigating these challenges while benefiting from heightened demand, especially in China and the advanced logic foundry sector.
The question-and-answer session revealed keen analyst interest in regional dynamics, starting with Andrew Gardiner of City. Gardiner sought clarification on China's performance, asking, 'The point you were making on China in the second half. So that China down second half on first half or down year on year or perhaps it's both?' Hagen responded by elaborating on expected accelerations in demand, though specifics on year-over-year comparisons were not detailed in the available transcript.
Nigel van Putten from Morgan Stanley followed up on China exposure, inquiring about revenue contributions for the first half of 2026 compared to the full year 2025, when it exceeded 30 percent. Hagen addressed this by noting limited visibility for the full year but affirmed an uptick in the first half. He added that advanced logic customers were providing increased visibility, extending up to eight quarters on a rolling basis.
Didier Shema of Bank of America probed the broadening of the customer base in advanced logic, beyond the dominant player. 'Obviously your largest customer is doing terrific on the two smaller ones. Is that supposedly expected to strengthen in Q2 or is that more of an H2 driver?' Shema asked. Hagen indicated that strengthening was anticipated, with Q2 China demand likely to rise sequentially in line with overall growth guidance of 980 million euros, plus or minus 5 percent.
Francois Bovinier from UBS shifted focus to memory layers and market share gains projected for 2027, questioning whether higher shares stemmed from superior timing or unexpected layer increases. Hagen's responses, as captured in the transcript, underscored expectations for elevated market positioning without delving into proprietary details. Bovinier also raised concerns about lead times and capacity constraints, given projected run rates exceeding 1 billion euros per quarter in the second half.
On capacity, Hagen acknowledged potential needs for increased capital expenditures, particularly at the Singapore plant, as demand ramps up into 2027. Sandeep Deshpande of JP Morgan joined the discussion, though specific questions from Deshpande were not fully detailed in the transcript. Aditya Metuku from HSBC delved into the 1.4-nanometer transition, noting last quarter's update that one customer was preparing for pilot production while the others lagged.
'I'm just wondering where is the status of those remaining customers? Are they getting closer to make the decision on pilot production or they still further down the line?' Metuku asked. Hagen replied, 'We see 1.4nm strengthening broadly with some strengthening marginally in some customers and significant increase in other customers.' This suggests progress across the board, though timelines remain fluid in the highly competitive sub-2-nanometer arena.
Jacob Bluestone of BNP Paribas inquired about the impact of transitions to 4F squared and FinFET architectures in DRAM cell periphery on revenues, wondering if effects would materialize in 2027, 2028, or later. Hagen described the 3.27-nanometer transition pickup as 'really broad based,' not limited to the largest customer. Ruben Davos from Kepler Cheuvreux touched on epitaxial (EPI) engagements in high-bandwidth memory (HBM), referencing significant progress with an additional customer and expectations for positive updates this year.
'I believe you talked about significant AP engagements with another HBM customer and expect good news this year,' Davos said. 'So of course curious whether two months on has anything firmed up on that additional qualification and would that be let's say fully incremental to your memory plan in 26?' Hagen confirmed ongoing work with multiple customers on Epitaxy but withheld further details, promising announcements in future calls.
The session wrapped with Javier Coronero from Morningstar Equity Research, though specifics of his query were not elaborated in the transcript. Hagen concluded, 'Thank you. Okay, that concludes the Q and A. Thank you all for attending our call today. Also on behalf of Hisham and Paul, thank you. Goodbye.'
ASM International's results reflect a semiconductor sector buoyed by AI investments from tech giants, even as geopolitical tensions and supply disruptions pose risks. The company's focus on advanced nodes positions it well against competitors like Applied Materials and Lam Research, though analysts will watch for execution on capacity expansions and customer diversification. With the full earnings call available via Chorus Call, investors await further details on how ASM navigates the evolving landscape through 2027 and beyond.
In the broader context, ASM's performance aligns with industry trends where logic and memory segments drive growth. China, despite U.S. export restrictions on advanced tech, remains a key market, contributing significantly to revenue. As Hagen noted during the call, accelerated demand there for various reasons bodes well for the near term, though long-term visibility depends on global trade dynamics.