ASM International NV’s shares slumped after new US export restrictions on China shrank its orders for the third quarter and are expected to have a negative impact on its business.
(Bloomberg) — ASM International NV’s shares slumped after new US export restrictions on China shrank its orders for the third quarter and are expected to have a negative impact on its business.
Taking into consideration the negative impact from the US restrictions, ASM International said it expects sales of €600 million to €630 million ($599 million to $629 million) in the fourth quarter in comparison to analysts’ average estimate of €609.2 million.
ASM shares sank as much as 9.9%, the most since January, and were trading down 8% as of 9:07 a.m. local time.
Earlier this month, Washington unveiled sweeping regulations to curb the sale of advanced semiconductors and chipmaking equipment to China and ban US persons from helping with China’s development of chip technologies. BE Semiconductor NV, another Dutch chip-gear maker, said the new rules have added more uncertainty to the industry’s outlook. However, Europe’s largest semiconductor equipment maker ASML Holding NV said it sees a “fairly limited” direct impact from the measures.
ASML Avoids Worst Impact From US Chip Restrictions, for Now
“Our equipment sales in China, at 16% of our total revenue in the first nine months of 2022, have been a growing part of our business with a strong contribution to group profitability,” said the company in a late Tuesday statement. “Based on a conservative scenario, we expect the new export restrictions will affect more than 40% of our sales in China.”
After reducing the backlog with the impacted orders from China, total bookings in the third quarter dropped to €675.5 million compared to a record level of €942.7 million in the second quarter.
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