Is ASM International profitable in 2026?

Yes. ASM International posted a Q1 2026 operating margin of 33.1% (a record) on revenue of €863m, up 16% year over year at constant currency, following FY2025 operating margin of 29.6% on €3.173B revenue, reported March 3, 2026 and April 23, 2026.

Who owns ASM International?

ASM International is publicly traded on Euronext Amsterdam (ticker ASM) and OTC in the US as ASMIY, with no controlling parent company. Ownership is broadly institutional, reported at roughly 52% institutional as of 2026. It also retains a ~25% associate stake in ASMPT.

Who is ASM International's biggest competitor?

In single-wafer ALD equipment, ASM International's main rivals are Applied Materials, Lam Research, Tokyo Electron and Veeco; a market-research estimate published February 28, 2026 put ASM's ALD share at ~19.4%, the largest of any single vendor, within a top-five group holding ~72% combined.

Could AI replace ASM International's business?

No. ASM International makes physical capital equipment (ALD, epitaxy, PECVD, furnace tools) for chip fabs, a workflow AI software cannot substitute. Instead, AI-driven demand for 2nm gate-all-around logic and HBM memory is a tailwind, cited as a Q1 2026 growth driver on April 23, 2026.

Is ASM International a safe company to join right now?

ASM reports 4,800+ employees worldwide as of July 7, 2026, roughly flat versus 2025, with no layoffs disclosed. The company posted a record 33.1% operating margin in Q1 2026 and guided Q2 2026 revenue of €980m ±5%, signaling continued expansion rather than contraction.

How exposed is ASM International to China export controls?

China equipment sales made up more than 30% of ASM International's 2025 revenue even after falling year over year, per its March 3, 2026 results. China's MOFCOM extended export controls to EU entities on July 24, 2026, adding fresh policy risk to that revenue stream ahead of Q2 2026 earnings on July 28.

Semiconductor companies · Netherlands

ASM International

asm.com ↗

Dutch maker of ALD deposition tools that put atom-thick layers on chips.

Hard to displace

Assessed 24 July 2026 · Evidence as of 24 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 24 July 2026 · Checkable from July 28, 2026 · Every call on the record Checkpoint: Q2 2026 earnings and China revenue line amid export controls

The call

ASM keeps growing on ALD tools that rivals sell but rarely displace once a fab has qualified them, with China export rules as the main open question.

ASM International sells specialized machines that deposit ultra-thin layers on computer chips during manufacturing. Customers like TSMC and Samsung stick with ASM because switching to competitors like Applied Materials or Lam Research requires years of testing and approval, and ASM has spent decades perfecting the chemistry and know-how, so rivals have tried and failed to grab market share. The big unknown is whether the U.S. and Europe will block ASM from selling to China, which bought roughly 30 percent of its equipment in 2025 and could force a major revenue drop.

Why

AI pressure: None apparent. AI chip demand pulls more ALD steps per wafer through ASM tools, feeding orders rather than threatening them. Could AI do the core job? Unlikely.

Bigger players: Applied Materials, Lam Research, Tokyo Electron. All three sell competing deposition tools today but have not dislodged ASM from fab qualification slots in ALD. Could a giant copy it? Probably.

What protects it. Fabs spend years qualifying a deposition tool on a live process; ripping out a qualified ASM tool means re-qualifying a whole node.

What would change this call

ASM's China revenue share in Q2/Q3 2026 earnings (next report July 28, 2026). Shows whether export controls are eroding ASM's China business faster than leading-edge demand offsets it.
Applied Materials or Lam Research announces a qualified ALD tool win at 1.4nm with TSMC, Samsung, or Intel. Would show ASM's ALD qualification lock-in is cracking, not just cyclical.
ASM's free cash flow turns positive again in Q2/Q3 2026 after Q1's negative €48m. Confirms Q1 cash drain was working-capital timing, not margin or demand deterioration.

Key numbers

FY2025 revenue €3.173B, up 12% at constant currency (2025-12-31)
Nine straight years of double-digit growth (2025-12-31)
China equipment sales over 30% of 2025 revenue (2025-12-31)

Named risks

China export-control escalation (MOFCOM actions extended to EU entities July 24, 2026) threatens >30% of 2025 revenue tied to China. Severity: high
Negative free cash flow of -€48m in Q1 2026 from working-capital build ahead of demand ramp. Severity: medium
1.4nm-node pilot ramp timing (H2 2026) could shift guidance materially depending on customer capex decisions. Severity: medium
Supply-chain and lead-time pressure flagged by management as limiting ability to meet rising order demand. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Applied Materials	losing to	Substack analysis (2026-05-10) reports Applied Materials lost share across key semiconductor equipment markets in 2025
Lam Research	contesting	Present in ALD/deposition tools but has not displaced ASM's seated qualifications as of FY2025 results
Tokyo Electron	contesting	Competes in deposition equipment; ASM held largest single-vendor ALD share (~19.4%) per Feb 2026 market report
Veeco Instruments	contesting	One of top-five ALD vendors holding combined ~72% share with ASM, per Feb 28, 2026 market report

Questions people ask

Is ASM International profitable in 2026?: Yes. ASM International posted a Q1 2026 operating margin of 33.1% (a record) on revenue of €863m, up 16% year over year at constant currency, following FY2025 operating margin of 29.6% on €3.173B revenue, reported March 3, 2026 and April 23, 2026.
Who owns ASM International?: ASM International is publicly traded on Euronext Amsterdam (ticker ASM) and OTC in the US as ASMIY, with no controlling parent company. Ownership is broadly institutional, reported at roughly 52% institutional as of 2026. It also retains a ~25% associate stake in ASMPT.
Who is ASM International's biggest competitor?: In single-wafer ALD equipment, ASM International's main rivals are Applied Materials, Lam Research, Tokyo Electron and Veeco; a market-research estimate published February 28, 2026 put ASM's ALD share at ~19.4%, the largest of any single vendor, within a top-five group holding ~72% combined.
Could AI replace ASM International's business?: No. ASM International makes physical capital equipment (ALD, epitaxy, PECVD, furnace tools) for chip fabs, a workflow AI software cannot substitute. Instead, AI-driven demand for 2nm gate-all-around logic and HBM memory is a tailwind, cited as a Q1 2026 growth driver on April 23, 2026.
Is ASM International a safe company to join right now?: ASM reports 4,800+ employees worldwide as of July 7, 2026, roughly flat versus 2025, with no layoffs disclosed. The company posted a record 33.1% operating margin in Q1 2026 and guided Q2 2026 revenue of €980m ±5%, signaling continued expansion rather than contraction.
How exposed is ASM International to China export controls?: China equipment sales made up more than 30% of ASM International's 2025 revenue even after falling year over year, per its March 3, 2026 results. China's MOFCOM extended export controls to EU entities on July 24, 2026, adding fresh policy risk to that revenue stream ahead of Q2 2026 earnings on July 28.

Timeline

2026-07-24China MOFCOM extends export controls to 14 EU entities amid Russia-sanctions retaliation
2026-07-21Q2 2026 earnings confirmed for July 28, webcast July 29
2026-06-30Q2 2026 guidance issued: revenue €980m +/-5%, H2 seen stronger than H1
2026-03-31Q1 2026 revenue €863m, +16% YoY cc, record 33.1% operating margin
2026-03-03FY2025 results: revenue €3.173B, +12% cc, 29.6% op margin, new €150m buyback, dividend raised to €3.25
2025-12-31Hwaseong, South Korea innovation and manufacturing center opened; FY2025 closes as 9th straight double-digit growth year
2025-09-30PE2O8 silicon carbide epitaxy system launched
2007-12-31ASM pioneers ALD process for high-kappa metal-gate transistors

Revision history

24 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

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