ASMPT orders hit 4-year high on AI and EV demand

ASMPT's future-facing bets on advanced packaging for AI and automotive chips are paying off, with first-quarter orders surging 72% and signaling a strong recovery in the semiconductor equipment market.

ASMPT Ltd. reported a 72% year-over-year surge in first-quarter orders to a four-year high of $727 million, driven by robust demand for equipment used in artificial intelligence servers and Chinese electric vehicles, signaling a strong recovery for the semiconductor capital equipment provider.

"Both the SEMI and SMT segments are poised to deliver strong performance," Morgan Stanley analysts said in a research report, maintaining their Overweight rating and HKD148 price target on the stock.

The Hong Kong-based company's revenue for the quarter rose 30% year-over-year to HKD4.1 billion ($525 million), with net profit jumping 207% to HKD254 million. The company guided for second-quarter revenue between $540 million and $600 million, representing 37% year-over-year growth at the midpoint and beating consensus estimates by about 6%. The strong performance was reflected in a book-to-bill ratio of 1.43, indicating demand is outpacing shipments.

The results show ASMPT is capitalizing on the semiconductor industry's shift toward more complex chip packaging, a critical chokepoint for producing powerful AI processors and high-bandwidth memory (HBM). The company's leadership in thermal compression bonding (TCB), a key technology for stacking memory chips, positions it to benefit as outsourced semiconductor assembly and testing (OSAT) firms like ASE Technology and Amkor Technology are forecast to increase capital spending by 34% in 2026 to meet demand from chip designers like Nvidia and AMD.

Advanced Packaging Powers Growth

ASMPT's strategic focus on advanced packaging is bearing fruit. The company highlighted receiving repeat orders for its chip-to-substrate (C2S) bonding tools and new orders for four chip-to-wafer (C2W) systems in the first quarter. These tools are essential for creating the complex, multi-die packages used in modern data centers and high-end smartphones.

Further cementing its position, ASMPT announced that a major memory customer completed qualification for its next-generation HBM3E or "16H" product using the company's advanced bonding technology. This is a significant win, as memory makers like SK Hynix and Samsung race to supply the HBM stacks required for AI accelerators, which are primarily manufactured by TSMC.

"ASMPT continues to lead in the thermal compression bonding field," Morgan Stanley noted. The broker sees the company as a key enabler of the entire AI hardware ecosystem, from the data center down to the individual components. The record orders in its Surface Mount Technology (SMT) segment, fueled by China's booming EV market and demand for optical transceivers, provide a second, diversified growth engine.

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