(Reuters) -ASM International expects new U.S. export restrictions to weigh heavily on its sales in China, the Dutch semiconductor supplier said on Tuesday as it reported third-quarter revenue slightly above its own forecast.
July-September revenue increased 33% year-on-year to 610 million euros ($607.38 million), beating the company's guided range of 570 million to 600 million euros, while new quarterly orders came in at 676 million euros, adjusted for the expected negative impact of the recent U.S. export restrictions.
According to ASMI, which counts Taiwan Semiconductor Manufacturing (TSMC) and Intel (NASDAQ:INTC) among its customers, the restrictions will affect more than 40% of its sales in China and the group consequently decided to reduce third-quarter bookings and related backlog.
Earlier this month, the Biden administration published a set of export controls, including a measure to cut China off from certain semiconductor chips made anywhere in the world with U.S. tools.
"Our equipment sales in China, at 16% of our total revenue in the first nine months of 2022, have been a growing part of our business with a strong contribution to group profitability", the company outlined in a statement.
The group now expects practically stable quarter-on-quarter sales in October-December at 600 million euros to 630 million euros, including the contribution from silicon carbide epitaxy equipment business LPE, acquired by ASMI on Oct. 3.
Dutch rival ASML Holding (AS:ASML) also reported forecast-beating third-quarter sales and profit along with record new bookings, but shrugged off the impact from U.S. sanctions on China. It noted that since it cannot currently keep up with orders in general, if orders for tools from China slow, it could sell them elsewhere.
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