ASM International NV: history, ownership, mission, how it works & makes money

A Brief History of ASM International NV

ASM International NV, a key player in the semiconductor manufacturing equipment industry, was founded in 1968 in the Netherlands. The company initially focused on the development of advanced epitaxial deposition technology. Over the years, it has evolved to become a leader in atomic layer deposition (ALD), a critical technology for modern semiconductor fabrication.

In the 1980s, ASM expanded its reach globally, establishing subsidiaries and partnerships, particularly in Asia. The firm went public on the Amsterdam Stock Exchange in 1994, significantly increasing its capital for research and development. By the late 1990s, ASM had launched several innovative products, enhancing its market position.

In 2009, ASM International NV underwent a major restructuring. The company divested its non-core businesses and streamlined its operations to focus solely on semiconductor equipment manufacturing. This strategic pivot allowed ASM to concentrate its resources on developing cutting-edge solutions, particularly in ALD.

The company's financial performance reflects its successful adaptation to industry demands. For the year 2022, ASM reported annual revenues of approximately €1.63 billion, representing a 16% year-over-year increase. The gross profit margin improved to 50.3% in 2022, up from 49.5% in 2021.

In recent years, ASM has capitalized on the growing demand for semiconductor devices driven by advancements in artificial intelligence, 5G technology, and electric vehicles. The company’s strategic partnerships, particularly with leading chip manufacturers, bolstered its market presence and fostered growth.

As of October 2023, ASM International NV has ventured into new technologies, including quantum computing and advanced packaging solutions, aligning its innovation strategy with the future needs of the semiconductor industry.

The stock performance of ASM International NV has been robust. In 2023, the share price increased by more than 50% year-to-date, reflecting investor confidence and the company's strong financial health. The market capitalization as of October 2023 stands at approximately €8 billion.

The company maintains a strong focus on sustainability and aims to reduce its environmental footprint by optimizing its manufacturing processes. ASM has committed to a 20% reduction in energy consumption per wafer processed by 2025, as part of its corporate social responsibility initiatives.

Overall, ASM International NV has established itself as a pivotal entity in the semiconductor equipment sector, with a history marked by strategic innovation and financial resilience.

A Who Owns ASM International NV

ASM International NV is a leading supplier of semiconductor manufacturing equipment. The ownership structure of the company is primarily characterized by institutional and individual investors, with a significant percentage of shares held by insiders and investment firms. As of the latest data available, here are the key shareholders:

The largest institutional shareholders include renowned investment firms and mutual fund companies. These entities often hold substantial positions in ASM International NV due to the company's strong performance in the semiconductor sector.

As of October 2023, the top five institutional shareholders are:

Insider ownership also plays a role in corporate governance. Key executives and board members possess a significant amount of shares, which can affect decision-making and align their interests with those of shareholders. As of the last report, notable insiders include:

The company's stock performance and growth trajectory have attracted substantial interest from both institutional and retail investors, making its ownership landscape dynamic. As of the last market close, ASM International NV's stock was trading at approximately $110.59, reflecting a year-to-date increase of 37.2%.

In summary, the ownership of ASM International NV is heavily influenced by institutional investors, with significant participation from insiders, highlighting the confidence in the company's growth and innovation capabilities in the semiconductor industry.

ASM International NV Mission Statement

ASM International NV, a leader in the semiconductor industry, focuses on providing innovative wafer processing solutions to its global customers. The company's mission is to support the advancement of technology by offering products that enhance the performance, productivity, and efficiency of semiconductor manufacturing processes.

The mission statement encapsulates ASM’s commitment to innovation and customer satisfaction. It highlights the following key objectives:

• Innovation: Develop cutting-edge technologies in deposition, ion implantation, and etching.
• Sustainability: Implement eco-friendly processes and materials to minimize environmental impact.
• Collaboration: Partner with leading semiconductor manufacturers to push the frontiers of technology.
• Customer Commitment: Deliver solutions that meet specific needs and challenges faced by customers.

In 2022, ASM International reported a revenue of €1.13 billion, an increase from €839 million in 2021. This growth reflects the strong demand for advanced semiconductor technology globally.

ASM International NV's commitment to innovation is evident in its substantial R&D investments, which in 2022 amounted to €159 million, reflecting approximately 14.1% of its total revenue. This dedication to research and development has positioned ASM as a critical player in the ongoing evolution of semiconductor technology.

Additionally, ASM's operational efficiency is highlighted by its gross margin, which reached 45.5% in 2022. This strong margin indicates effective cost management and product pricing strategies amid growing competition in the semiconductor industry.

The company's focus on sustainability is reflected in its goal to reduce carbon emissions by 25% by 2025, leveraging improved technologies and processes to minimize its environmental footprint.

ASM International NV's mission and strategic goals continue to resonate with a rapidly changing technological landscape, making it a vital partner for semiconductor manufacturers aiming to innovate and excel.

How ASM International NV Works

ASM International NV operates primarily in the semiconductor industry, providing equipment and processes for the production of integrated circuits. The company specializes in atomic layer deposition (ALD) equipment, which is crucial for producing advanced semiconductor devices. In 2022, ASM International reported a revenue of **€1.639 billion**, a significant increase compared to **€1.365 billion** in 2021, representing a growth rate of approximately **20%**.

The company's business model revolves around innovation and advanced technology in semiconductor manufacturing. They focus on research and development to enhance their product offerings, which has been reflected in their R&D expenses. In 2022, ASM International invested **€270 million** in R&D, making up roughly **16.5%** of their total revenue.

ASM International's products are utilized in various applications, including memory chips, microprocessors, and other semiconductors. The company serves a global customer base, with a significant presence in key markets such as Asia, North America, and Europe.

ASM International operates through a global network of manufacturing and engineering sites. As of the end of 2022, the company had approximately **2,400** employees worldwide. The workforce is a mix of engineering talent and operational staff, all contributing to maintaining the high standards of innovation required in the semiconductor industry.

In terms of market performance, ASM International's stock price has shown a strong upward trend. As of October 2023, the share price stands at approximately **€320**, compared to **€240** at the beginning of 2022, reflecting a growth of around **33%**. The company’s market capitalization is approximately **€12.5 billion**.

ASM International is also committed to sustainability and environmental practices within its operations. The company has reported a **25%** reduction in carbon emissions per revenue unit over the last five years as part of its sustainability goals.

Looking at the company's customer base, ASM International has partnerships with major semiconductor manufacturers, including **Intel**, **TSMC**, and **Samsung**, who rely on ASM's technology to enhance chip performance and efficiency. The company is often recognized for its innovative solutions in ALD technology, which allows for the precise deposition of thin films used in advanced electronics.

Financially, ASM International maintains a solid balance sheet, with a total assets value of approximately **€2.5 billion** and a debt-to-equity ratio of **0.05**, indicating a low level of debt relative to its equity base. This strong financial position allows the company to pursue aggressive growth strategies and investment in new technologies.

Overall, ASM International NV's focus on cutting-edge technology, strategic partnerships, and commitment to sustainability underpins its operations and positions it favorably within the competitive semiconductor industry.

How ASM International NV Makes Money

ASM International NV, a key player in the semiconductor industry, primarily generates revenue through the design, manufacturing, and sale of advanced semiconductor equipment. The company's focus is on technologies that enhance the production efficiency of microchips, serving clients in the global semiconductor market.

In the fiscal year 2022, ASM International reported total revenues of €1.16 billion, marking a 43% increase year-over-year. This growth was largely attributed to increased demand for semiconductor fabrication equipment and the expansion of production capacities by its customers.

ASM's revenue is predominantly derived from its core segments:

• Deposition Equipment: This includes atomic layer deposition (ALD) systems, which are critical in the manufacturing of advanced microchips. In 2022, this segment generated approximately €956 million, accounting for over 82% of total revenue.
• Etch Equipment: ASM's etching equipment contributed around €160 million to total sales, representing roughly 13% of revenue.
• Service & Spare Parts: The service segment, which includes maintenance and parts, brought in about €44 million, making up approximately 4% of total revenue.

The following

ASM operates in a highly competitive environment, maintaining partnerships with key semiconductor manufacturers. The company invested approximately €185 million in research and development in 2022, which represents around 16% of its total revenue, highlighting its commitment to innovation and technology advancement.

Geographically, ASM International's revenue distribution in 2022 was notable. The Asia-Pacific region accounted for about 60% of total sales, primarily due to strong demand from foundries in Taiwan, South Korea, and China. Europe and North America followed with 25% and 15% of total revenue, respectively.

• Asia-Pacific: 60%
• Europe: 25%
• North America: 15%

As the demand for semiconductors continues to grow, driven by trends such as AI, 5G, and cloud computing, ASM International is positioned to capitalize on these market opportunities. The company’s strategy focuses on expanding its portfolio of products and enhancing its technological leadership.

In summary, ASM International NV makes money through a well-structured approach in the semiconductor equipment market, driven by robust segment performances and strategic geographic distribution. With significant investment in R&D and a focus on customer partnerships, the company aims for sustained revenue growth in a rapidly evolving industry.