Investment story

ASM is focused on fast-growing segments in the semiconductor equipment market

We aim to create sustainable, long-term value for all stakeholders.

A proven track record in growth

ASM is focused on the fast-growing segment of the wafer fab equipment market. Our key strengths are in the deposition equipment segment. In particular, we have a leading share of mid 50s % in the ALD market and a growing position in the Epi market. With these key technologies, we enable our customers to develop their next-generation semiconductor devices.

We aim to grow our revenue by an average growth rate of 16%-21% over the period 2020-2025. Thanks to our focus on fast-growing markets, we have consistently outperformed the broader wafer fab equipment market in recent years. In 2022, we increased our revenue by 33% and our equipment revenue by 38% at constant currencies. 2022 marked our sixth consecutive year of double-digit growth.

Competitive strengths

Our key strengths support ASM's growth. First and foremost, our people are our power: they are at the heart of our success. With more than 4,000 highly talented people worldwide, we innovate at the edge of what is technologically possible.

The core part of our overall growth strategy is continuous innovation – this provides ASM with a leading technological competitive advantage. With R&D centers in seven countries, we have helped shape today’s leading-edge semiconductor products, which in turn have driven advancements in areas such as biotech and medicine, cloud computing, mobile connectivity, and AI.

In ALD, our leadership is supported by more than 20 years of experience, the broadest portfolio of ALD solutions, and strong customer engagement. In addition to being an innovation leader, we aim to provide our customers with dependable, leading-edge products and services at a consistent performance level while providing the best total cost of ownership.

Healthy profitability and cash flow

Solid profitability will allow us to continue investing in growth. We strive for healthy gross margins of 46%-50% and operating margins of 26-31% in the 2021-2025 period.

R&D represents our key investment. In R&D, we work with our customers to develop new deposition processes that will enable next-generation semiconductor devices. Driven by improved profitability, our free cash flow has grown over the past few years. Excluding €314 million in cash spent on acquisitions, we generated free cash flow of €381 million, up 43% from €266 million in 2021. We announced that we will increase our capex to €150-200 million in 2022 to expand our R&D activities further.

Our number one investment priority is to invest in the growth of our company in a sustainable manner. Also, we strive to maintain a strong balance sheet and are committed to our sustainable dividend policy. Our policy for excess cash is to return it to our shareholders through share buybacks.

Focus on sustainability

At ASM, accelerating sustainability is an integral part of our Growth through Innovation strategy. ASM’s sustainability focus areas are Innovation, People, Planet, Responsible supply chain, and Governance. We collaborate with our stakeholders across our value chain, aiming to bring faster, more meaningful change to meet the world's environmental challenges. After announcing our Net Zero 2035 ambition in 2021, we also sized our Scope 3 GHG emissions and submitted our measurements and targets for validation by the Science Based Targets initiative (SBTi). 

On diversity and inclusion, we have set a target of 20% females in our workforce by 2025. Coming from 15% in 2021, we made our first step, increasing to 17% in 2022. In safety, our vision is ZERO HARM! We foster a comprehensive safety leadership culture, regardless of the role.

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