ASM International (NL:ASM) is a semiconductor equipment manufacturer. It specialises in making equipment for a process called atomic layer deposition (ALD). This process is essential to the manufacturing of all advanced semiconductors and ASM currently has over 50 per cent of the global ALD market.
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
- Investment in computing power creates structural growth trends
- 80 per cent of key market niche
- R&D intensity shuts out competitors
- Relationships with all leading chip makers
Bear points
- US sanctions hit sales to Chinese customers
- Wider equipment manufacturing market expected to shrink in 2023
To properly understand ASM’s importance to this market – and to the wider world – it is necessary to have a basic understanding of the different types of semiconductors and how they are made.