Dutch semiconductor equipment maker ASM International (ASMI) announced it will immediately begin manufacturing some of its tools in the United States in response to mounting tariff pressures under a new U.S. trade policy.

Speaking during the company's Q1 2025 earnings call, CFO Paul Verhagen said ASMI can “move very quickly, almost immediately” to shift part of its production to the U.S. to support local demand. The move comes after U.S. President Donald Trump signed a “reciprocal tariffs” executive order in early April, imposing 25% tariffs on EU steel, aluminum, and auto imports, and 20% tariffs on other goods—covering around 70% of EU exports to the U.S. worth €532 billion in 2024. Semiconductor equipment, currently exempt, could also face separate tariffs under Trump's broader trade plan.

ASMI is expanding its capacity in Arizona, where it has operated for over 50 years alongside key customers like Intel and TSMC. The newly completed Scottsdale factory will serve as a manufacturing base for some products. However, Verhagen noted that U.S.-based production isn't necessarily more efficient due to complex import duties on components sourced globally. “Continuing production at our existing sites may still be more efficient,” he said, adding that ASMI will optimize its supply chain once the tariff environment stabilizes.

Currently, ASMI's main production hub is in Singapore, where a second plant opened in 2022 has tripled local output and doubled global capacity. Still, the U.S. remains a key market—accounting for 21% of ASMI's 2024 revenue—placing it under pressure to remain competitive with local giants like Applied Materials and Lam Research.

AI and GAA Demand Drive Q1 Growth

ASMI reported strong Q1 2025 results, with revenue reaching €839 million, up 26% year-on-year at constant currency. Bookings totaled €834 million, a 14% increase, driven primarily by AI-related demand and the industry's transition toward gate-all-around (GAA) transistor architectures and high-bandwidth memory (HBM).

CEO Hichem M'Saad emphasized that ASMI's strength in atomic layer deposition (ALD)—used to build nanoscale chip circuits by layering materials atom by atom—gives the company a strong edge as chipmakers adopt more advanced processes. He added that while the company expects to meet the lower end of its full-year revenue guidance, reaching the upper range will require favorable external developments.

Still, global trade tensions have prompted ASMI to revise its 2025 revenue forecast down from €3.2–3.6 billion to €3.19–3.48 billion, reflecting a more modest 10–20% year-on-year growth instead of the previously expected 24%.

Strong China Demand and Deep Industry Roots

Despite U.S. trade headwinds, ASMI benefited from strong demand in China, helping boost Q1 orders by nearly 20% from a year earlier. ASMI's competitor ASML also saw Chinese sales remain robust, accounting for 27% of its system revenue in Q1 2025.

Founded in 1964 by Arthur del Prado, ASMI is considered the origin company behind two other major semiconductor players: ASML and ASMPT. It co-founded ASML with Philips in 1984 and ASMPT with Siemens in 1975. While the three companies now operate independently, ASMI still owns a 52% stake in ASMPT, and all maintain close ties in capital and technology.

With expanding U.S. manufacturing, a strong AI-driven product roadmap, and deep industry partnerships, ASMI appears positioned to navigate the turbulence of global trade shifts—though much hinges on how tariffs evolve in the coming months.