ASM International, Europe’s second-largest semiconductor equipment supplier, announced it will pass on any tariff-related cost increases to customers and the broader value chain. In a meeting with Bank of America analysts, ASM’s CEO and CFO emphasized that the company’s manufacturing flexibility ensures it won’t be at a disadvantage compared to global peers.
Key Points:
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ASM said it would adjust pricing to offset potential cost pressures from U.S. trade tariffs, a strategy aligned with competitors like ASML, which previously stated that U.S. chipmakers would bear the bulk of such costs.
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The Dutch company manufactures wafer fab processing equipment, vital for chipmakers like Intel and TSMC as they adopt next-gen Gate-All-Around transistor designs.
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In other areas, ASM competes with major U.S. firms like Applied Materials and LAM Research, and is noted to be more exposed to the U.S. market than other European peers such as ASML and BE Semiconductor.
Market Outlook:
ASM also provided a bullish forecast for China, saying Chinese sales could hit the high end—or exceed—their 2025 guidance. The company previously estimated that China would represent between 20–29% of its total sales in 2025.
This positive outlook aligns with ASML’s recent commentary, which noted stronger-than-expected Chinese demand in its own Q1 report.
Despite rising geopolitical tensions and trade restrictions, ASM appears confident in navigating the shifting global semiconductor landscape, leveraging pricing power, regional flexibility, and strong demand from Asia.