[News] Dutch Firm ASM International Reportedly Starts U.S. Production to Sidestep Tariffs, Taps Arizona

While its rival ASML saw a huge decline for U.S. sales in the first quarter, ASM International, the most U.S.-exposed among European chip toolmakers, has revealed it has begun producing some of the tools on American soil to get ahead of mounting U.S. tariffs, with Arizona being one of the bases, according to Reuters.

With 21% of its 2024 revenue tied to the market, the Dutch chip toolmaker faces pressure to keep pace with local giants in America, like Applied Materials and LAM Research, the report adds.

As noted by ASMI CEO Hichem M’Saad, being near major chipmakers gives it an edge in rolling out its cutting-edge technologies — especially Atomic Layer Deposition (ALD), which enables the creation of ultra-small chip circuits by layering materials just atoms thick onto silicon wafers, as per Reuters.

As suggested by Reuters, the Dutch firm, Europe’s No. 2 chip toolmaker, has operated in Arizona for over 50 years — now alongside key clients like Intel and TSMC.

As ASMI highlights in its annual report, while 2025 is expected to be the ramp year for GAA (gate-all-around) – or nanosheet – transistor architecture, this would be a major growth driver for the company. The smaller dimension and 3D nature of the GAA devices, as well as the additional control needed, benefits from the adoption of additional ALD and Epi steps, ASMI adds.

Robust Q1 Orders Fueled by China

While doubling down on U.S. manufacturing, ASMI saw a nearly 20% year-over-year growth for its first-quarter orders with €834.2 million ($951 million), up from €697.9 million a year ago, mainly boosted by robust Chinese demand, Reuters notes.

Notably, its Dutch chipmaking tool rival ASML, also saw its Chinese sales remains strong in Q1, as the country made up 27% of ASML’s system sales—steady from the fourth quarter of 2024.

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(Photo credit: ASM International)