Sunday, November 1, 2020

ASM International CEO Benjamin Loh on Q3 2020 Results

(Seeking Alpha Transcriot: LINK): The wafer fab equipment, spending also remained robust in the first 9 months of the year. Looking at the market by segment, logic and foundry spending continues to be on track for a strong year. Investments in the most advanced 10-nanometer and below nodes continue to be the key driver in the logic/foundry segment. 

Our customers have been stepping up their leading edge manufacturing capacity in support of the wafer demand for multiyear growth drivers such as 5G, cloud computing, artificial intelligence and autonomous driving. 5G, just to take one example, is expected to drive renewed growth in the smartphone market and new apps. Enhanced capabilities will lead to higher semiconductor content as compared to the 4G smartphones. Demand in the coming years for faster and more energy-efficient chips to power these 5G smartphones is an important reason for customers in the foundry segment to invest in new leading edge manufacturing capacity. 

ASM CEO Benjamin Loh (photo credit

We confirm our earlier forecast spending in the broader memory market in the second half will be higher than in the first half, mainly driven by an uptick in 3D NAND spending. Limited capacity over the last couple of years combined with expected growth in end markets such as smartphones brings the potential of a further improvement in supply/demand conditions.

This year, we are having good traction in our DRAM business, driven by the high-k application wins that we discussed last quarter. Our ambition in memory remains to substantially increase our served available market over time as we further step up our customer engagements in new applications. However, it is important to keep in mind the logic/foundry represents the largest part of our sales, and therefore will remain the most important driver for our business in the forthcoming periods. A strong area of growth this year has been the Chinese market for the broader wafer fab equipment market and for ASM. We benefited from the investments we made in recent years to strengthen our position in this market and from the first meaningful investment by some of the domestic players in the more advanced nodesp

ALD has already moved into the mainstream over the last years, we expect ALD to turn even more into a core technology that will help our industry stay of Moore's law. In the years to come, beyond 2021, we expect that ALD demand will substantially grow above the USD 1.5 billion market size that we have guided earlier. 

Increasing device complexity, new materials and ever thinner films with higher required conformality mean that conventional deposition will run out of steam and that ALD is going to take a bigger piece of the pie. Both in logic/foundry and in memory, important technology inflections will drive substantial increase in ALD requirements in the medium term.

Epi remains an attractive growth market, and we are strongly focused on adding new customers and driving our market share in the coming years. In vertical furnaces and PECVD, we continue our strategy to invest in targeted niche opportunities, which already drove decent additional top line growth for our company in the recent years. To conclude, prospects remain solid, and we are focused to ensure ASMI is going to benefit and stay on its growth path.

Full transcript with Q&A from analysts: LINK

No comments:

Post a Comment