May 4 news – Dutch semiconductor equipment manufacturer ASM International announced at its Q1 2025 earnings call that it will immediately begin producing some products in the United States to respond to the “reciprocal tariffs” executive order signed by Trump in early April. The CFO stated that the company can move quickly to meet local demand, though efficiency concerns remain for U.S. production. The company will optimize its supply chain later to mitigate the impact of tariffs.
I. Under Tariff Pressure, ASM Urgently Shifts to U.S. Domestic Production
On May 4, Dutch semiconductor equipment maker ASM International (ASM) announced during its Q1 2025 earnings call that it will immediately launch a U.S. domestic production plan in response to American tariff policies. In early April, U.S. President Trump signed a “reciprocal tariffs” executive order, imposing a 25% tariff on steel, aluminum, and automotive imports from EU member states, and a 20% “reciprocal tariff” on other goods, covering about 70% of EU exports to the U.S., with a total value of €532 billion last year. The order also includes plans for additional tariffs on previously exempt items like pharmaceuticals and semiconductors.
ASM CFO Paul Verhagen said the company can act swiftly to meet local customer demand through U.S.-based production. Currently, ASM’s main production base is in Singapore, and in 2022, it announced the construction of a second plant there, which will triple Singapore’s production capacity and double global output once completed. The completion of a new plant in Scottsdale, Arizona, will further expand its U.S. capacity. However, Verhagen also noted uncertainties in the efficiency of domestic production in the U.S., and said ASM will optimize its supply chain to reduce financial impact once tariff policies stabilize.
II. AI Demand Drives Growth, Trade Tensions Lead to Revenue Forecast Downgrade
According to financial results, ASM recorded Q1 revenue of €839 million this year, a 26% year-over-year increase at constant exchange rates; orders reached €834 million, up 14% from a year earlier. This growth was mainly driven by demand related to artificial intelligence, the shift in advanced logic processes toward gate-all-around (GAA) technology, and surging demand for high-bandwidth memory (HBM). However, demand in other sub-markets remains weak.
Due to global trade tensions, ASM revised its full-year 2025 revenue forecast downward from the previous estimate of €3.2–3.6 billion to €3.19–3.48 billion, reducing the projected growth rate from 24% to between 10% and 20%. CEO Hichem M’Saad admitted that while reaching the lower end of the revenue target is feasible, achieving the upper end will require favorable external factors, and the outlook remains highly uncertain.
III. ASMI, ASML, and ASMPT: The “Family Ties” of the Semiconductor Sector
In the semiconductor industry, ASMI, ASML, and ASMPT are three world-leading companies. In 1964, Arthur del Prado founded ASMI, considered the industry’s “mother” company. In 1975, ASMI and Siemens jointly established ASMPT, focusing on chip packaging; in 1984, ASMI partnered with Philips to found ASML, specializing in upstream lithography machine manufacturing. ASML later became independent, ASMPT expanded its operations into Asia, but ASMI still holds a 52% stake in ASMPT. While the three companies now each have distinct focuses, they continue to maintain close capital and business ties.
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