ASM International Investor Day Summary Company Overview - **Company**: ASM International (OTCPK: ASMI.Y) - **Event**: 2025 Investor Day - **Date**: September 23, 2025 Key Industry Insights - **Market Trends**: The semiconductor market is shifting towards high-performance computing driven by AI, with a significant focus on logic and memory technologies [3][34] - **Market Size**: The semiconductor market is projected to reach $1 trillion by 2030, with 70% of this market driven by leading-edge logic and memory technology [7][33][40] - **ALD Market Growth**: The Atomic Layer Deposition (ALD) market is expected to grow significantly, with projections of reaching $5.1 billion to $6.1 billion by 2030, reflecting a CAGR of 9% to 13% [35][46] Technology Developments - **Device Scaling**: Transition from FinFET to Gate All Around (GAA) technology is underway, with GAA expected to dominate by 2025 and further advancements to CFET (Complementary FET) anticipated by 2031 [4][13][41] - **Memory Technology**: The transition from 6F2 to 4F2 DRAM architecture is expected to drive significant opportunities, with a total SAM increase of $400 million to $450 million [37][56] - **Advanced Packaging**: The advanced packaging market is projected to double from $5.6 billion in 2025 to $11.5 billion by 2030, with a CAGR of 15% [19][20] Strategic Objectives - **ALD Business Growth**: The company aims to maintain its leading share in ALD for logic and grow its share in DRAM and HBM [23] - **Epitaxy Expansion**: Focus on capturing new epilayers in both logic and DRAM, especially high-performance DRAM [24] - **Advanced Packaging**: Targeting growth in advanced packaging, with plans to increase SAM from 15% to over 30% by 2030 [22][60] - **Sustainability Initiatives**: Emphasis on reducing chemical usage and improving process efficiency to enhance sustainability [28][29] Financial Performance - **Operating Profit Target**: Current operating profit stands at 28%, with a target of 30% by 2030 [31] - **Revenue Projections**: The company anticipates achieving over $5.7 billion in revenue by 2030 [31] Innovations in Services - **Outcome-Based Services**: Introduction of innovative services that guarantee tool performance and improve operational efficiency [66][72] - **Dry Cleaning Solutions**: New dry cleaning technology enhances selectivity and sustainability, significantly reducing CO2 emissions [81][84] - **Automation**: Increased automation is critical for achieving angstrom-level precision in ALD and epitaxy processes [68][70] Conclusion - ASM International is well-positioned to capitalize on the growth opportunities in the semiconductor industry, particularly in ALD and advanced packaging, while focusing on sustainability and operational efficiency to enhance customer value and drive revenue growth [60][61]

Investment Rating - The report maintains a "Buy" rating for JCET Group, Tianshui Huatian, and TongFu Microelectronics, with target prices adjusted to Rmb42.000, Rmb11.500, and Rmb30.000 respectively [5][46][51]. Core Insights - The OSAT industry is expected to continue its revenue and profit growth through 2025, with a projected 20% increase in capex, benefiting back-end equipment vendors [1][3][22]. - The OSAT sector is currently halfway through its recovery phase, with demand driven by industrial, automotive, and advanced packaging for high-performance computing (HPC) and power semiconductors [2][8][21]. - JCET is highlighted as the top pick due to its significant exposure to advanced packaging and new growth potential in automotive and memory sectors [4][28]. Summary by Sections Industry Overview - The OSAT industry has been experiencing growth since 1Q24, on track for its sixth consecutive quarter of year-over-year growth, with inventory levels well managed [2][8]. - Historical growth cycles for the OSAT industry have lasted between 3 to 7 years, indicating that the current cycle is still in its early stages [2][8]. Capacity and Utilization - Overall OSAT capacity utilization rates (UTR) are estimated to be between 60-70% in 1Q25, with expectations for improvement throughout the year [3][17]. - Advanced packaging capacity remains tight, while traditional packaging is expected to drive UTR improvements in the latter half of 2025 [3][18]. Company-Specific Insights - JCET is projected to see a 40% increase in capex this year, while Tianshui Huatian and TongFu Microelectronics are also expected to benefit from the industry's recovery [3][22]. - Tianshui Huatian's reliance on AMD for 50% of its revenue poses a risk amid geopolitical tensions, despite potential gains from the industry recovery [4][26]. Financial Projections - JCET's revenue for 2025 is revised to Rmb41.457 billion, reflecting a 3% increase from previous estimates, with a gross profit margin of 14.1% [40]. - Tianshui Huatian's revenue is expected to remain stable at Rmb16.126 billion for 2025, while TongFu Microelectronics' revenue is adjusted down to Rmb27.441 billion [46][51].