Latest news with #NathanVifflin
Time of India
7 days ago
- Business
- Time of India
Chipmaker STMicro makes first loss in over a decade, hit by restructuring costs
By Nathan Vifflin AMSTERDAM: STMicroelectronics reported a second-quarter loss on Thursday, its first in more than a decade, underperforming market expectations as it was hit by restructuring costs . The company's shares fell 11% in early trade, on track for their worst day since July last year. The Franco-Italian chipmaker, which makes power chips for Tesla 's drivetrains and eSim modules for Apple's iPhones, posted a loss of $133 million for the quarter, missing the average $56.2 million profit analysts expected in an LSEG poll. The operating loss included a $190 million impairment, restructuring charges and other costs, STMicro said in a statement. Without the restructuring and impairment costs, profits would have reached $57 million, the company added. STMicro's heavy reliance on in-house manufacturing, representing about 80% of sales, has burdened it with underused factories and high staff costs when the market slows, unlike rivals Infineon and NXP that use more contract manufacturing, analysts say. Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets such as STMicro, Texas Instruments , or NXP have faced a sales slump, hit by low demand, high inventories, and geopolitical disruptions . STMicro, one of Europe's largest chipmakers, unveiled a cost-cutting plan last year to restructure its manufacturing facilities and save hundreds of millions of dollars by 2027. The plans, which included cutting 5,000 jobs in France and Italy over the next three years, started a spat between the French and Italian governments, who jointly own a stake of 27.5%in the firm. STMicro's Chief Executive Jean-Marc Chery defended his plan after the Italian government sought to oust him and accused the management of insider trading. STMicro has not provided guidance for the full year of 2025. In June, the company said it saw the early signs of an upcycle, or a period of increased market demand, which would allow it to achieve its second-quarter revenue goal of $2.71 billion. Revenue rose to $2.76 billion from $2.52 billion in the second quarter, ahead of that target. STMicro said it is now expecting revenue in the third-quarter to reach $3.17 billion, ahead of analysts expectations of $3.10 billion.
Time of India
23-07-2025
- Business
- Time of India
ASM second-quarter bookings disappoint, cites order timing
By Nathan Vifflin AMSTERDAM: Computer chip equipment maker ASM International reported second-quarter bookings below market expectations on Tuesday, citing uneven order timing from chipmakers making advanced chips. The Dutch firm said order intake was "lumpy" and it expects orders from those chipmakers to pick up again in the third quarter. Analysts consider ASM one of the firms best positioned for the coming years as its sales mix is geared toward the cutting-edge segment strongly benefiting from the artificial intelligence race. But the global semiconductor equipment sector faces headwinds including tariff uncertainty, weaknesses at major customers Intel and Samsung and a sustained downturn in all other chip markets. "Second-quarter profits beat, but bookings and outlook for the third-quarter bookings point to stagnation", Degroof Petercam analyst Michael Roeg said. Bookings, the industry's most closely watched figure, came in at 702.5 million euros ($825 million) in the second quarter, against the 843 millions euros that analysts were expecting, according to a consensus compiled by researcher Visible Alpha. ASM also projected orders in the third quarter would fall below third-quarter sales, which it said would flat to slightly lower than the second quarter's 835.6 million euros. Second-quarter adjusted operating earnings were 263 million euros, a 31.5% margin, against market expectations of 223 million euros. "The market environment continued to show a mixed picture in the second quarter. Growth in AI is fueling ongoing capacity expansion... Conditions in most of the other market segments are still slow," the company said in a statement. On Wednesday, peer ASML warned of delayed orders as chipmakers building factories in the U.S. await clarity on the potential impact of tariffs.
Yahoo
22-07-2025
- Business
- Yahoo
ASM second-quarter bookings disappoint, cites order timing
By Nathan Vifflin AMSTERDAM (Reuters) -Computer chip equipment maker ASM International reported second-quarter bookings below market expectations on Tuesday, citing uneven order timing from chipmakers making advanced chips. The Dutch firm said order intake was "lumpy" and it expects orders from those chipmakers to pick up again in the third quarter. Analysts consider ASM one of the firms best positioned for the coming years as its sales mix is geared toward the cutting-edge segment strongly benefiting from the artificial intelligence race. But the global semiconductor equipment sector faces headwinds including tariff uncertainty, weaknesses at major customers Intel and Samsung and a sustained downturn in all other chip markets. "Second-quarter profits beat, but bookings and outlook for the third-quarter bookings point to stagnation", Degroof Petercam analyst Michael Roeg said. Bookings, the industry's most closely watched figure, came in at 702.5 million euros ($825 million) in the second quarter, against the 843 millions euros that analysts were expecting, according to a consensus compiled by researcher Visible Alpha. ASM also projected orders in the third quarter would fall below third-quarter sales, which it said would flat to slightly lower than the second quarter's 835.6 million euros. Second-quarter adjusted operating earnings were 263 million euros, a 31.5% margin, against market expectations of 223 million euros. "The market environment continued to show a mixed picture in the second quarter. Growth in AI is fueling ongoing capacity expansion... Conditions in most of the other market segments are still slow," the company said in a statement. On Wednesday, peer ASML warned of delayed orders as chipmakers building factories in the U.S. await clarity on the potential impact of tariffs. ($1 = 0.8512 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
16-07-2025
- Business
- Time of India
ASML warns it may not achieve growth in 2026, shares drop
By Nathan Vifflin and Ozan Ergenay VELDHOVEN: ASML , the world's biggest supplier of computer chip-making equipment, warned on Wednesday that it may not achieve growth in 2026, even after its second-quarter bookings beat market expectations. Analysts had hoped that the quarter would provide some reassurance over its outlook for 2026. However, the company warned that geopolitical uncertainty continued to cloud its prospects. Shares sank as much as 7.3% in early trading. "The level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs," ASML's Chief Executive Christophe Fouquet said in an internal interview on the company's website. The direct and indirect impact of tariffs are still very uncertain, CFO Roger Dassen said in the interview, ASML was working with its supply chain to mitigate any impact. "While we still prepare for growth in 2026, we cannot confirm it at this stage," Fouquet said in a statement. If it materialized, 2026 would be the first flat year in over a decade of uninterrupted revenue growth since 2012. ASML investor Han Dieperink, chief investment officer at investment firm Aureus, said he was not worried about the upcoming year, noting that the quarter pointed to solid demand. The Dutch group's net bookings, the most closely watched figure in the industry, were 5.54 billion euros ($6.4 billion). That was ahead of analysts' consensus estimate of 4.44 billion euros, according to researcher Visible Alpha. "The second quarter beats from top to bottom," analyst Michael Roeg of Degroof Petercam said. Roeg cited strong demand from artificial intelligence related chipmakers. ASML's EUV lithography machines, the world's most advanced chip circuit printing system, is the key enabling technology behind leading-edge chips like those used in Nvidia's GPUs, or Apple's Macs and iPhones. Chinese demand also remained elevated, representing 27% of all machine sales in the last three quarters, and confirming the country's chipmakers have continued to buy less advanced machines in anticipation for more U.S.-led export restrictions.
Time of India
15-07-2025
- Business
- Time of India
ASML's 2026 growth outlook hinges on second-quarter bookings
By Nathan Vifflin VELDHOVEN: Investors are hoping that ASML 's bookings are robust enough to support its 2026 growth ambitions when the world's biggest chip-making equipment supplier reports its second-quarter earnings on Wednesday. The Dutch firm has lost around 30% in market value since peaking one year ago, reflecting investor concern over its growth prospects. At an investor event last November, the maker of the EUV machine - the backbone of AI chipmaking - said it saw 2026 as a growth year but didn't specify how much growth it anticipated. Analysts see the second quarter as a "make or break" period which will determine its outlook for 2026, considering delivery times typically take around 12 months. "ASML would need to double our second-quarter order estimates (of 5.3 billion euros) to comfort our 2026 revenue forecast ," Barclays analyst Simon Coles told Reuters. Analysts, on average, expect second-quarter bookings to reach 4.44 billion euros, according to a consensus compiled by researcher Visible Alpha, and 21.3 billion euros for the full-year. TSMC, CHINA DEMAND Hitting those forecasts depends largely on orders from the world's top contract chipmaker TSMC, analyst Marc Hesselink of ING said. The company, which is also ASML's top customer, is expected to order the tools it needs for its upcoming manufacturing process, N2, this year. "We see a better-than-expected demand and order from TSMC and China players, but lower-than-expected demand and order from Intel and Samsung," said Kevin Wang, analyst at Mizuho. Positive news on talks with clients over future orders would also offer reassurance that it will meet current market forecasts, said Hesselink. ASML still has a long way to go in 2025 to fulfill booking expectations for its lithography systems, after net bookings, the industry's most closely watched figure, came in at 3.9 billion euro ($4.6 billion) in the first quarter, missing estimates, analysts say. Its earnings will provide a gauge of the resilience of China's chipmakers, which have been buying lower-end ASML equipment not impacted by export restrictions. That demand helped the company beat first-quarter forecasts. Last October, ASML projected Chinese orders would fall to a 20% share of all machine sales in 2025. In fact, they constituted 27% of machine sales, steady from a quarter earlier. Analysts expect that trend to continue unless U.S. export curbs are further extended to apply to the older equipment.
