ASMPT keeps SMT segment as AI infrastructure demand grows
Chipmaker ASMPT retains its SMT solutions segment, citing strengthening AI infrastructure demand and long-term growth prospects. The segment's revenue is projected to double to US$1.6 billion by 2027, with gross margin rising to about 40 per cent.
Chipmaker ASMPT (0522) announced on Thursday that its board has decided to retain the SMT solutions segment as part of the company, concluding that this is in the best interests of ASMPT and its shareholders. The decision is driven by structural artificial intelligence infrastructure demand, which is strengthening SMT's long-term growth prospects.
Bassel Haddad, group chief executive of ASMPT, said AI-driven demand is positioning the SMT solutions segment for a step change in its financial profile. "With this clarity on SMT's future within ASMPT, we are focused on disciplined execution to realise this potential and create sustainable long-term value for shareholders," he added.
ASMPT estimated that the SMT addressable market will expand at a compound annual growth rate of more than 20 per cent from 2024 to 2027, supported by accelerating AI infrastructure investment. Retaining the SMT solutions segment gives the company broader exposure across the AI hardware stack and creates new opportunities across its portfolio, as the segment could support system-level integration required across AI servers, networking and power applications, the semiconductor manufacturer said in an exchange filing.
The SMT solutions segment's bookings market share has increased from around 24 per cent in 2025 to about 31 per cent in 2026 year-to-date. Bookings more than doubled from around US$700 million (HK$5.46 billion) to above US$1.4 billion for the same period, with AI-related applications accounting for more than 50 per cent so far.
ASMPT said the segment's revenue is projected to double from the 2025 level to approximately US$1.6 billion by 2027, while its gross margin is expected to increase from the low 30 per cent range to about 40 per cent.