Ahead of
what’s next
Annual Report 2024
PDF/Printed version
This document is the PDF/printed version of ASM
International N.V.’s 2024 Annual Report and has been
prepared for ease of use. The 2024 Annual Report in
European Single Electronic Reporting format (the ESEF
reporting package) is the official version. The ESEF
reporting package is available on the company’s website.
In case of any discrepancies between this PDF version
and the ESEF reporting package, the latter prevails.
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forward-looking statements
In addition to historical information, some of the
information posted or referenced herein or on the
website contains statements relating to our future
business and/or results, including, among others,
statements regarding future revenue, sales, income,
expenditures, sufficiency of cash generated from
operations, maintenance of interest in ASMPT Ltd,
business strategy, product development, product
acceptance, market penetration, market demand, return
on investment in new products, facility completion dates
and product shipment dates, corporate transactions,
restructurings, liquidity and financing matters, outlooks,
and any other non-historical information. These
statements include or may be interpreted to include
certain projections and business trends, which are or
could be considered ‘forward-looking’. We caution
readers that no forward-looking statement is a
guarantee of future performance and that actual results
could differ materially from those contained in the
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You can identify forward-looking statements by the use
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‘anticipate’, ‘expect', ‘plan', ‘estimate’, ‘forecast',
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of these words or comparable words.
Forward-looking statements do not guarantee future
performance and involve risks and uncertainties. You
should be aware that our actual results may differ
materially from those contained in the forward-looking
statements as a result of certain risks and uncertainties.
These risks and uncertainties include, but are not limited
to, economic conditions and trends in the semiconductor
industry and the duration of industry downturns,
currency fluctuations, the timing of significant orders,
market acceptance of new products, competitive
factors, litigation involving intellectual property,
shareholder(s) or other issues, commercial and
economic disruption due to natural disasters, terrorist
activity, armed conflict or geopolitical tensions or
political instability, changes in import/export regulations,
epidemics, pandemics and other risks indicated in our
most recently filed Annual Report and other filings from
time to time. The risks described are not the only ones.
Some risks are not yet known and some that we do not
currently believe to be material could later become
material. Each of these risks could materially affect our
business, revenues, income, assets, liquidity, and capital
resources. All statements are made as of the date of
posting unless otherwise noted, and we assume no
obligation to update or revise any forward-looking
statements to reflect future developments or
circumstances.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
2
Table of contents
Introduction
4
1. CEO message
5
2. Highlights 2024
8
3. At a glance
9
4. Our positioning in the market
11
4.1 Industry megatrends
11
4.2 WFE market overview
13
4.3 Our product technologies
16
5. Engaging our customers closely and early
21
6. Our business model
22
Strategy and performance
23
7. Strategy
24
8. How we create value for our stakeholders
26
8.1 Our value-creation model
27
9. CFO message
28
10. Financial performance
31
10.1 Performance review
31
10.2 Capital allocation policy
37
10.3 Shareholders
37
11. Interview with our Chief People Officer
39
12. Leading-edge innovation
43
12.1 ASM R&D strategy and model
43
12.2 Corporate research
43
12.3 Product development
44
12.4 Intellectual property and patents
48
13. Operational excellence
50
13.1 Our outsourced manufacturing model
50
13.2 Manufacturing operations
50
13.3 Global supply chain
51
14. Sustainability highlights
53
14.1 Interview with our Head of Sustainability
54
Sustainability statements
56
15. General disclosures
57
15.1 Company overview
57
15.2 Sustainability governance
57
15.3 Stakeholder engagement
59
15.4 Impacts, risks, and opportunities (IROs)
59
16. Climate action
62
16.1 Climate impacts, risks, and opportunities
62
16.2 Climate action approach and results
63
16.3 Product sustainability
68
16.4 Own operations
69
17. People
73
17.1 People practices
73
17.2 Diversity, equity, and inclusion
74
17.3 Skilled workforce
77
17.4 Health, safety, and employee
well-being
78
18. Supply chain responsibility
81
18.1 Supply chain overview
81
18.2 Engaging our suppliers
82
18.3 Taking action
84
19. Business conduct
86
19.1 Corporate culture and ethics
86
19.2 Ethics, Bribery, and Corruption
87
20. EU taxonomy
88
Leadership and governance
93
21. Corporate governance
94
22. Management & Executive Committee
biographies
101
23. Supervisory Board bios
102
24. Supervisory Board report
103
24.1 Message of the Chair
103
24.2 Supervisory Board report
105
25. Risk management
112
26. Remuneration report
116
26.1 Message of the Chair
116
26.2 Changes to the Management Board
remuneration policy
117
26.3 Management Board remuneration policy
118
26.4 Remuneration of the Management Board
in 2024
121
26.5 Remuneration of the Supervisory Board
128
Financial statements
131
28. Consolidated financial statements
133
29. ASM International N.V. Financial statements
175
Appendix
192
31. Sustainability statements appendix
193
32. Additional sustainability information
203
33. Five-year non-financial table
208
34. Non-IFRS financial performance measures
211
35. Five-year financial tables
212
36. Declarations
216
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
3
How we stay ahead
of what’s next
12
AI revolution enabled by
ALD and Epi
15
GAA: a key growth driver
for ASM
17
ALD tech explainer
41
Community engagement
72
Catalyze: renewable
energy across our value
chain
77
Diversity: Women in
Leadership
1. CEO message
5
2. Highlights 2024
8
3. At a glance
9
4. Our positioning in the market
11
5. Engaging our customers closely and early
21
6. Our business model
22
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
4
Introduction
1. CEO message
Hichem M’Saad
Chairman of the Management Board and Chief
Executive Officer
Despite mixed market conditions, ASM delivered
a strong performance in 2024. Sales increased
by 12% at constant currencies, marking our
eighth consecutive year of double-digit growth,
and we continued to strengthen our
engagements with key customers. I want to
thank all our people for their relentless
commitment and teamwork, which contributed to
another successful year for ASM.
It was a year of progress for the company. To stay ahead
of what's next, we continued investing in R&D, our
people, and expansion. We increased our share of wallet
with leading customers as they prepare to introduce new
technologies, especially the new gate-all-around (GAA)
tech node in the advanced logic/foundry segment.
I believe there's never been a better time to be in the
semiconductor industry. Market research firms expect
the semiconductor market to grow to US$1 trillion by the
end of the decade. Artificial intelligence (AI) will account
for a meaningful part of this growth and will require ever-
faster and power-efficient computing solutions. To
enable next-generation AI chips, our customers are
working on 3D device technologies and new materials,
all of which will require more ALD and Epi steps.
Since assuming my role as CEO in May 2024, I have
become even more convinced of the strong
opportunities that lie ahead of us. I feel privileged to lead
our great team into the next growth phase.
Strong growth in AI, mixed conditions in
the rest of the market
After the drop in 2023, the semiconductor end market
recovered by 18% in 2024. This growth was uneven,
however, with mixed dynamics across the different
segments. AI has become the main driver of the
semiconductor market, significantly boosting data-
center growth. In 2024, other high-volume end-market
segments such as PCs and smartphones continued to be
relatively sluggish, due to slow consumer spending,
economic uncertainty, and ongoing geopolitical tensions.
The industrial and automotive end markets entered a
cyclical downturn with limited visibility for improvement
in the near term.
“There has never been a better time to be
in the semiconductor industry.”
This picture in the end markets was also reflected in the
spending patterns of our customers. Advanced
semiconductor devices that enable AI have become the
main areas of wafer fab equipment spending – in
particular GAA devices in leading-edge logic/foundry and
high-bandwidth memory in DRAM.
Accelerating momentum in GAA
Our leading-edge logic/foundry business accelerated in
2024. In the first part of the year, sales in this segment
were still relatively low, following the softer market
conditions in 2023. In the second half of the year,
leading-edge logic/foundry sales increased significantly
compared to the first half, driven by investments in the
new GAA 2nm technology node. Initially, most of our
GAA-related tool shipments were for customer pilot
lines, but in the second half, the mix shifted increasingly
towards tools for volume-manufacturing. Leading
customers have confirmed their plans to ramp the 2nm
node in high-volume manufacturing during 2025, with
some reporting strong demand from their own
customers for the 2nm technology.
GAA will be a significant inflection for ASM. As previously
communicated, we expect our served available market
to increase by US$400 million compared to the previous
FinFET node. The complexity of the GAA device
architecture has increased ALD requirements, such as
more dipole and work-function layers. In addition, we
believe ASM has maintained its leading ALD market
share in the transition to the GAA 2nm node.
Silicon Epi is also an enabling technology for GAA as it
defines the precision of the channel layers (nanosheets).
Our Epi solution offers best-in-class performance, due to
innovations such as our closed-loop on-wafer
temperature control system (Turino). Compared to the
previous node, we have successfully expanded our
customer base in GAA, for various Epi applications.
While our total Epi sales decreased slightly in 2024, due
to the cyclical downturn in the power and wafer
segments, sales of our advanced Intrepid ES platform
increased substantially, reflecting our growing Epi share
in GAA applications.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
5
During the year, we also expanded our cooperation with
key logic/foundry customers for the sub-nodes of 2nm
and for the next 1.4nm node. We expect innovations
such as back-side power delivery, widening adoption of
metal ALD, and selective ALD to drive further increases
in ALD intensity.
“AI has become the main driver of WFE
spending.”
Memory sales fueled by HBM DRAM
Our memory business delivered a very strong
performance in 2024. As a percentage of equipment
sales, memory jumped from a relatively low level of 11%
in 2023 to 25% in 2024. On the back of strong AI-related
demand, DRAM customers stepped up their investment
in high-bandwidth memory (HBM). The high-speed
DRAM chips used in these HBM stacks require high-k
metal gate ALD technology, in which ASM has a leading
position. In other parts of the DRAM market, which
depend more on the PC and smartphone segments,
investment levels remained subdued.
Sales of 3D-NAND approximately doubled, primarily for
our advanced ALD gap-fill solutions. However, this was
compared to a depressed level in 2023, and was mostly
limited to technology buys. In 2024, 3D-NAND
represented the smaller part of our memory sales.
The memory market is a strategic growth area for ASM.
As the DRAM industry transitions to smaller nodes and to
4F2 technology, more ‘logic-like’ technologies will be
needed. This is expected to result in additional ALD
layers and increased adoption of Epi. In 2024, we further
expanded our R&D engagements with leading memory
customers, underpinning our expectations for further
increases in our share of wallet in the coming years.
Power/analog in cyclical correction
Our sales in the power/analog/wafer segments were
down by a significant double-digit percentage in 2024.
This is compared to the very strong level in 2023, when
our sales in this market nearly doubled. The slowdown
reflected the soft demand and inventory corrections in
the industrial and automotive end markets.
Strengthened market position in SiC Epi
Our silicon carbide epitaxy (SiC Epi) sales increased by a
mid-single digit percentage last year. Albeit below our
initial forecast for a double-digit increase, we believe
this is still a robust performance. The overall SiC Epi
market dropped in 2024, following a deceleration in
sales of electric vehicles (EVs) in several geographies.
While the outlook for the SiC market in 2025 further
weakened, we believe the longer-term prospects remain
positive. Following the acquisition of LPE in 2022, we
have substantially increased our positioning, by
combining LPE’s portfolio of first-class SiC Epi products
with ASM’s scale and strengths in areas such as
manufacturing, customer reach, and global support.
After a number of key customer wins in Europe and the
US in 2023, we increased our base of SiC Epi customers
in 2024.
We believe we are well placed to further expand our
market share in SiC Epi. A highlight in 2024 was the
launch of our first 200mm single-wafer cluster SiC Epi
tool, the PE2O8. Similar to our existing PE1O6 and PE1O8
tools, the PE2O8 offers leading film performance,
excellent within-wafer and wafer-to-wafer uniformity,
and the lowest level of defectivity. These benefits will
only become more important as our customers are
preparing for the transition from 150mm to the larger
200mm wafer size. New in the PE2O8 is its dual-
chamber platform, compared to the single-chamber
architecture of our existing PE1O8 tool. This substantially
increases throughput and lowers cost of ownership for
our customers.
“Momentum in GAA sales accelerated in
2024.”
Sales from China remained strong
Following a strong increase in 2023, the Chinese market
again made a strong contribution to our sales in 2024. In
the second half of 2024, sales in this market decreased
compared to an exceptional level in the first half, as
several customers in China entered a phase of digestion
after substantial new capacity investments in 2023 and
2024. We expect this softening to continue and sales in
China to decrease in 2025. The impact from new US
export controls announced in December 2024 was in line
with our assumptions and is reflected in our forecasts for
2025.
We project equipment sales in China to represent a low-
to-high 20s percentage of ASM's total revenue in 2025.
Although this is a decrease from 2024, it is still higher
than in the years before 2023. Spending in segments
such as mature logic/foundry continue to be higher than
historical levels. In addition, we have expanded our
positions in the Chinese market. For example, in the
power/analog market, we have gained several new
customers over the past couple of years, due to the
introduction of innovative and cost-competitive products
such as our Sonora vertical furnace and Intrepid ESA Epi
tools.
Strong financial results
ASM’s financial results continued to be strong in 2024.
Revenue increased by 12% at constant currencies to a
new record level of €2.9 billion, again outperforming the
WFE market. Equipment sales growth of 9% at constant
currencies was driven by our ALD product lines,
supported by momentum in both the logic/foundry and
memory segments. Our Spares & Services business had
another strong year with sales growth of 29% at
constant currencies. This growth was partly fueled by
continued customer adoption of outcome-based
services, and, in the second half, by accelerated demand
in China.
Adjusted gross margin1 increased from 49.3% to 50.5%,
supported by a positive mix including a continued
substantial sales contribution from the Chinese market,
as well as ongoing cost focus.
With net R&D up 20% and SG&A expenses strictly
controlled (+3%), the operating result increased by 23%.
Free cash flow also increased by 23% to a record level
of €548 million. Our financial position remains solid,
providing us with the flexibility to invest in innovation
and growth, and allowing continued attractive
shareholder returns. Throughout 2024, we continued to
invest in the newly expanded innovation centers in Korea
and Arizona, both announced in 2023. With the
publication of our Q4 2024 results, we announced a
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
6
1 Adjusted figures are non-IFRS performance measures. For a reconciliation of non-IFRS performance measures, see the table at the end of section 10.1.
proposed dividend of €3.00 per share (+9%), and a new
€150 million share buyback program.
Strategic priorities unchanged
The pillars of our Growth through Innovation strategy
remain unchanged. This strategy has proven successful
over the past few years, as shown by our strengthened
market positions and revenue growth that outpaces the
industry. Maintaining ASM's leadership in ALD continues
to be a priority. As communicated in our Investor Day
2023, we expect ALD to remain one of the fastest-
growing segments of the WFE market with a CAGR of
10% to 14% (2022-2027).
In Si Epi, we continue to aim for further market-share
increases towards our target of at least 30% by 2025,
particularly in the fast-growing leading-edge part of the
Si Epi market. In vertical furnaces, PECVD, and SiC Epi,
we continue our selective growth strategy.
“People are at the heart of ASM’s
success.”
We are also exploring and investing in new growth areas.
One of these is advanced packaging, which is becoming
an increasingly important driver for improved device
performance in advanced semiconductor applications. It
plays to ASM’s strength in differentiated deposition and
surface treatment technologies. We have R&D
engagements in place with key customers on new
advanced packaging applications, which we expect to
start contributing to our sales in the coming years.
Continued focus on efficiency
While growth is a priority, we also remain focused on
improving efficiency. We are investing in the ongoing
digitalization of our organization. For example, we are
using AI in the screening of future ALD materials, which
helps increase process efficiency and accelerate the
time to market for new ALD applications. In our global
operations, we are collaborating with key suppliers to
create ‘Merge-in-Transit’ (MIT) modules that can be
shipped directly to customers. By outsourcing more of
these MIT modules, we have opportunities to lower cost
and achieve additional growth with minimal expansion of
our manufacturing facilities. The benefits of these
efficiency programs will be realized over time, helping us
to maintain healthy margins.
Developing our talent
Our talented people are at the heart of ASM’s success,
and we continued to invest in development, training, and
engagement. Following significant growth in previous
years, our total headcount remained steady at
approximately 4,600 FTEs in 2024. We hired nearly 600
new employees, focusing on R&D, field support and
customer-facing roles. Voluntary staff turnover remained
relatively low at 7%. In 2024, we continued to invest in
the development of our people through our ‘Lead Ahead’
program, which focuses on enhancing leadership skills
for people managers at all levels.
We continued to take steps to strengthen our culture,
which is key to attracting and retaining talent, and to
promote accountability, collaboration, and empowerment
(ACE) as best-practice behaviors.
Accelerate sustainability
In 2024, we made further strides in sustainability, which
is one of ASM's strategic priorities. In March, we
published our Climate Transition Plan, which details how
we aim to achieve our Net Zero by 2035 target. As a first
milestone, we achieved 100% renewable electricity in our
operations worldwide in 2024. This contributed to a 52%
decrease in our combined Scope 1 and 2 GHG emissions.
We also continued to engage with our suppliers on
sustainability topics. By 2024, 96% of our critical
suppliers have submitted their climate disclosures.
“100% renewable electricity was one of
our sustainability highlights in 2024.”
During the year, we also stepped up R&D investment in
decarbonizing our products. We implemented a
methodology to track our progress, and, for the first time
with this year’s Annual Report, we have presented
measurable targets for our deposition technologies, such
as a 35% reduction in precursor consumption for key
ALD applications by 2035. This will help our customers
reduce their own energy consumption while maintaining
high-performance production capabilities.
Our efforts in sustainability have led to improved
sustainability ratings. Notably, ASM was recently named
in CDP's prestigious 'A List' for climate action and water
for the first time.
Outlook 2025
Looking into 2025, market conditions continue to be
mixed, with WFE spending expected to increase slightly.
Leading-edge logic/foundry is expected to show the
highest growth in 2025. As part of our Q4 2024 results
publication in February 2025, we communicated that
despite some further shifts in capex forecasts among
customers in this segment, overall our forecast for a
substantial increase in GAA-related sales in 2025 is
unchanged. In memory, we expect healthy sales in 2025,
supported by continued solid demand for HBM-related
DRAM, although it is too early to tell if memory sales will
be at the same very strong level of 2024. The power/
analog/wafer segments are still in a cyclical correction
with no signs of a recovery in the near term. In SiC Epi,
the outlook further weakened. China revenue is
expected to decrease in 2025.
We confirm our target for revenue in a range of €3.2-3.6
billion in 2025, but it is too early to provide a more
specific forecast due to market uncertainty and as
visibility for the second half of the year is still limited.
March 6, 2025
Hichem M'Saad
Chairman of the Management Board and Chief Executive
Officer
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
7
2. Highlights 2024
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
8
Financials
Revenue
Operating result
€2,933m
€802m
+11% vs 2023
+23% vs 2023
+12% at constant
currencies
Gross margin
Free cash flow
50.5%
€548m
vs 48.3% in 2023
'+23% vs 2023
People
Employees
Total injury rate
4,632
0.47
Headcount
vs 0.48 in 2023
Female employees
Engagement survey
18%
95%
vs 17% in 2023
Participation rate in 2024
Supply chain
Key suppliers
disclosing to CDP
96%
88% in 2023
Innovation
Gross R&D spending
Patents in force
€470m
3,395
+15% vs 2023
+15% vs 2023
Planet
Electricity from
renewable sources
Scope 1+2 GHG
emissions
100%
(52)%
vs 88% 2023
Reduction vs 2023
3. At a glance
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
9
About us
A heritage of over 55 years of relentless research and
innovation, and breakthrough technologies
A leading semiconductor equipment provider,
with a focus on deposition tools
• A leading mid-50s percentage market share in ALD
• Growing position in silicon Epi
We aim to be a leader in sustainability
ò Equipment revenue 81%
ò Spares & Services 19%
81
19
Our global footprint
Key locations where
we’re active
15
Countries/regions we
supply to
20
Manufacturing facilities
3
73
21
6
Revenue breakdown by geography
ASM’s key locations:
ò Belgium
òò Japan
ò
Corporate, sales and
service offices
ò China
òòò Korea
ò Finland
ò Malaysia
ò
Research and product
development facilities
ò France
òò Netherlands
ò Germany
ò Taiwan
ò
Manufacturing facilities
ò Ireland
òò Singapore
ò Israel
òò United States
For further information on our
various locations, please visit
our corporate website:
www.asm.com
òòò Italy
ò Asia 73%
ò US 21%
ò Europe 6%
Revenue breakdown by segment
History
Over 50 years of innovation
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
10
1968
Founded by
Arthur del Prado
1976
ASM America
1999
Acquisition of
Microchemistry
2016
20th listing anniversary
Euronext Amsterdam
2023
Announcement
of new and
expanded
facilities in Korea
and Scottsdale,
Arizona
ASMPT
1975
ASM Japan
1982
ASM Singapore /
Acquisition of Genitech
(Korea)
2004
Opening of new and
expanded Singapore
facility
2022
ASM was founded in the Netherlands in 1968 at the start
of the semiconductor industry. Since then, the company
has sparked many new ventures around the world, and is
at the forefront of innovation and globalization in our
industry. Until 2008, this evolution took place under the
visionary leadership of Arthur del Prado. He was
followed by his son, Chuck Del Prado, until 2020, then
by Benjamin Loh until 2024. Hichem M’Saad is our
current CEO.
From the early 1970s, ASM expanded globally and into
new equipment market segments, first by entering the
furnace technology market in the Netherlands. In 1976,
ASM America was founded, shaping our current epitaxy
technology. Since 1982, ASM Japan has done the same
for plasma CVD products.
In the 1970s, in the market for back-end equipment, ASM
founded ASMPT in Hong Kong, in which ASM still
maintains a minority share. This was followed by ASM’s
participation in a joint venture with Philips in the
mid-1980s to develop lithography technology, known
today as ASML. ASM sold its share in ASML in 1988.
Through our acquisitions of ASM Microchemistry in 1999
and ASM Genitech Korea in 2004, we laid the foundation
of ASM’s market leadership in ALD. In 2022, with the
acquisition of LPE, we entered the fast-growing silicon
carbide epitaxy market. ASM is expanding globally with
investments in multiple new facilities, including one in
Singapore, as well as recently announced locations in
Hwaseong, Korea, and Scottsdale, Arizona, in 2023.
4. Our positioning in the market
We are a leading supplier in the semiconductor
equipment industry. Our ALD and Epi
technologies enable the most advanced and
next-generation semiconductor devices. Long-
term prospects for our industry remain positive,
driven by trends such as digitalization, AI and
electric vehicles.
4.1 Industry megatrends
Artificial intelligence (AI)
Digital transformation and AI trends continue to fuel
significant growth in the semiconductor-device market.
The semiconductor market increased by 18% to more
than US$600 billion in 2024 (Gartner, Dec 2024), driven
by AI innovations and demand for GPUs, DRAM and
NAND devices in hyperscale data centers. Growth is
expected to continue into 2025 as broader long-term
secular trends remain solid. As global economies
become increasingly digitized, advanced
semiconductors are key to creating this more connected
world.
New AI-augmented end-market products and
applications are being developed across nearly every
segment of the economy. There is tremendous demand
for smarter devices for the home, autonomous vehicles,
robotics for industry and home, and new generative-AI
services like ChatGPT delivered on AI PC and
smartphones for consumer and industrial use cases.
And the number of connected devices is multiplying.
Analysts are expecting the total semiconductor market
to be worth >$1 trillion by the end of the decade.
The growth of AI is expected to increase capacity
requirements for the semiconductor industry, as AI-
specific functions are expected in >40% of logic/foundry
devices by 2027. ASM stands to benefit as more single-
wafer ALD and Epi steps are expected to be required to
enable semiconductor devices with higher power
efficiency and improved performance that will enable
next-generation AI applications.
Semiconductor market forecast (US$ billion)
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
0
500
1000
1500
Source: TechInsights (December, 2024)
Rising complexity of chip technologies
Demand for wafer fab equipment (WFE) is primarily
driven by the growth in the semiconductor device
markets and the increasing complexity of advanced
semiconductor devices for shrinking dimensions and
new device architectures. As a result, we see that each
new technology node needs further investment in
process equipment. The WFE market was up about 4%
to US$102 billion in 2024 (TechInsights, Dec 2024).
While there was considerable support and activity
around AI end markets, the WFE market was also
supported by strong investment from China and
moderated by global economic weakness, rising interest
rates, inflationary pressures, trade conflicts, and other
challenges. During the year, there was a significant
increase in investment by memory manufacturers for
high-performance DRAM devices in high-bandwidth
memory (HBM). For leading-edge logic/foundry,
spending was up vs 2023, while investments for mature
nodes, including the power/analog/wafer segments,
were weaker. In spite of the moderate WFE market
growth in 2024, trends in the semiconductor market are
expected to be positive for the structural long-term
growth outlook for WFE.
Talent
We need the right talent to grow and strengthen our
organization, but there is increasing competition for
highly skilled talent everywhere we operate. Without this
talent we will not be able to realize our strategy.
Environmental footprint
While the semiconductor industry contributes vital
technology to society, it is becoming increasingly
important for our stakeholders and society in general
that we make progress on sustainability initiatives. To
this end, we continue to strengthen our team and global
innovation and collaboration network to enhance the
energy and resource-efficiency of our products and their
impact on our customers products, and in turn improve
the industry's environmental footprint.
Geopolitical risk and shift in global supply
In the past, the success of the semiconductor industry
was strongly linked to the success of all parties along
the value chain. Innovations by equipment suppliers
supported state-of-the-art solutions developed by chip
manufacturers. This led to new opportunities for
customers to take advantage of these advanced chips.
Geopolitical developments, such as trade restrictions,
put this model at risk. At the same time, increasing
awareness around the importance of a domestic
semiconductor industry is leading to shifts in the
industry's global footprint, with 'Chips Acts' stimulating
investments in local manufacturing in various
geographies.
WFE market forecast (US$ billion)
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
0
50
100
150
200
Source: TechInsights (December, 2024)
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
11
Technical performance benchmark: AI catching up quickly or even surpassing human baseline
Source: AI Index, 2024 | Chart: AI Index report
AI revolution enabled by ALD and Epi
AI capabilities are improving and changing our world.
Across a variety of disciplines – including image
recognition and generation, medical diagnostics and
research, entertainment and software – we’ve been
seeing a rapid improvement in AI capability in the past
few years. Training generative AI models requires
increasingly massive amounts of computing power, and
this comes at a significant cost.
To counter this demand, there is a need for
improvements in semiconductor logic / GPU and memory
devices for higher speed and lower energy usage.
Improvements in the logic transistors, memory and
packaging – scale, design, and materials used – are vital.
Smaller transistors, in denser devices with advanced
packaging, are enabling better performance at lower
power.
As we’ve seen, new AI products and services drive
growth in data centers with higher content servers,
including AI-specific GPUs / accelerators, and more
memory, including high bandwidth memory (HBM). And
we’re just starting to see the growth in AI-enhanced
edge devices, smartphones, home appliances, autos,
etc. all with increases in silicon content.
These expanded markets and requirements are
expected to continue to drive more advanced-node logic
and memory capacity and leading-edge technologies
such as FinFET and gate-all-around (GAA) transistors
and high-performance DRAM. That means more single-
wafer ALD and Epi process steps for ASM tools. To
enable the continuation of these improvements, new
materials are being developed and deposited with ASM
ALD and epitaxy, with better control and conformality, to
enable the devices of tomorrow.
The chart on the right illustrates how projected
semiconductor growth will enable new AI capabilities.
“AI is one of the most disruptive
innovations in recent history, and ALD
and Epi will play an increasingly
important role in continued scaling and
new device designs that will enable the
AI products of tomorrow.”
AI semiconductor forecast 2023-2028
Automotive
Communications
Compute
Consumer
Industrial
Storage
2023
2028
0
50
100
150
200
Source: Gartner, October 2024
For ASM customers, the transition to GAA technology
utilizes new epitaxy and ALD steps, and is expected to
provide the necessary advancements in transistor
performance and efficiency to support the growing
demands of AI applications – enabling faster and more
energy-efficient AI systems, in data centers, on smart
phones and PCs.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
12
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
—%
20%
40%
60%
80%
100%
120%
Human baseline
Image
classification
Basic-level reading
comprehension
Visual reasoning
Multitask language
understanding
Competition-level
mathematics
English language understanding
4.2 WFE market overview
The major segments in WFE include lithography, etch &
clean, deposition, and process diagnostics. Our focus is
on deposition equipment, comprising about 26% of WFE,
in which we address ALD, Epi, PECVD and vertical
furnaces. We now also address silicon epitaxy (Si Epi),
following the acquisition of LPE in 2022. Within
deposition, ALD and Epi are among the fastest-growing
market segments, driven especially by leading-edge
technology advancements like gate-all-around (GAA)
transistors in logic/foundry. The single-wafer ALD market
is expected to grow from ~US$2.6 billion in 2022 to
US$4.2-$5.0 billion in 2027.
The Si Epi market is expected to grow from ~US$2.0
billion in 2022 to about ~US$2.3-US$2.9 billion in 2027,
as shared at our Investor Day in September 2023. Based
on these estimates, the ALD and Epi markets are
expected to outgrow the total WFE market. The ALD
market is projected to increase with a CAGR of 10%-14%
in 2022-2027. This growth is expected to be driven by
the adoption of many applications and 'layers', such as
far high-k gate and Vt tuning layers, metal ALD, and
selective ALD, in both the logic/foundry and memory
markets. The total Si Epi market is expected to grow with
a CAGR of 3%-8%. Expected growth in the coming years
is relatively lower for the mature node part of the Si Epi
market, which has been boosted by significant
investments in the past couple of years, particularly in
China. The leading-edge part of Si Epi is expected to be
the fastest-growing segment with a CAGR of 10%-15% in
2022-2027, driven by Si Epi requirements in GAA, and
increasing adoption in future DRAM technology nodes.
ASM supplies equipment to the leading semiconductor
manufacturers in the logic/foundry and memory (DRAM
and NAND) segments of the WFE market. Other smaller
but important market segments we supply equipment to
include power/analog devices and wafer manufacturing.
Analog and power semiconductors are used in a wide
range of electronic systems for mobile products,
automotive, telecommunications, and other applications.
The wafer manufacturing segment relates to the
processing of bare silicon wafers before they are
delivered to semiconductor device manufacturers. Some
wafer manufacturers also provide epitaxy wafers – Si or
silicon carbide (SiC). As the market for leading-edge
solutions continues to grow, we remain focused on
supporting our customers, leveraging ASM’s strong track
record of innovation in semiconductor materials,
hardware, and process technologies. We enable their
roadmaps, which are focused on accelerating
technology, improving manufacturing efficiencies,
optimizing costs, and sustainability.
ALD market size
(billion)
2022
2025
2027
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Source: ASM Investor Day 2023
Epi market size
(billion)
Leading edge
Non-leading edge
2022
2025
2027
0
0.5
1
1.5
2
2.5
3
Source: ASM Investor Day 2023
Semiconductor value chain and manufacturing process
Making semiconductor chips at our customers’ fabs is
complex and costly. The fabs house a large set of wafer-
processing equipment, which performs a series of
process steps on round silicon wafers, typically 300mm
in diameter. The equipment operates in cleanrooms,
where the air is filtered to prevent small particles from
causing contamination that could affect the circuitry on
the chips. Semiconductor manufacturing involves a wide
range of technical disciplines, including physics,
electronics, chemistry, plasma generation, gas‑flow
dynamics, optics, and metrology.
There are many steps to fabricating a semiconductor
chip, involving various types of wafer-processing
equipment. These include:
• Deposition of thin-film layers on the starting wafer;
• Lithography to create patterns;
• Etching to remove material;
• Deposition of thin-film layers; and
• Planarization, cleaning and thermal treatments.
ASM’s systems are designed for deposition processes
where thin films, or layers, of various materials are grown
or deposited onto the wafer. Many different thin-film
layers are deposited to complete the full sequence of
process steps to make a chip.
Finally, the individual chips on the wafer are separated,
tested, and packaged in a protective housing. The
resulting packaged products are integrated into
electronic end products like servers and smartphones,
and many other consumer devices – either directly or
within printed circuit boards or other advanced
packaging solutions where multiple chips are packaged
with very dense interconnections.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
13
US$2.0
US$1.9
US$2.3
US$2.3
US$2.9
US$2.6
US$3.1
US$3.7
US$4.2
US$5.0
Semiconductors: value chain & manufacturing process
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
14
102.5
626
2,685
27.1
24.3
13.6
9.0
2
28.5
Source: TechInsights; Gartner (1,2)
1
GAA: a key growth driver for ASM
From their invention in 1947 to the early 2010s, planar
transistors were the mainstream technology for
advanced semiconductor devices. The gate electrode
sits on top of a planar (semi-conducting) epitaxially
deposited silicon channel area. When a charge is applied
to the gate the flow of electrons is allowed to pass,
making one of the most important building blocks of
computer chips. Most of the improvements in device
speed and cost came from making the device smaller,
by using new (smaller wavelength) light sources for the
lithography processes, along with some materials
changes like the introduction of HiK gates, and strained
silicon.
Over time, as dimensions were reduced, the
controllability of the gate electrostatics (unwanted
electric fields which make the operation of the transistor
unreliable, or allow energy loss in the off state, i.e.
leakage) became more challenging.
FinFET (FinField Effect Transistors) devices were
introduced at around the 16nm node to mitigate these
issues. It was recognized that surrounding the gate on
three sides vs just one side on the top of the transistor
could offer better control of the gate on/off states,
limiting leakage and improving the scalability (continued
reduction in the size of transistors).
Then, over a period of around 10 years, the industry
progressed from 16nm FinFET devices, down to what is
nominally called the 3nm node today.
As manufacturers have sought to scale FinFET
transistors to smaller dimensions, new challenges –
comparable in some ways to those of planar transistor
scaling – have arisen. To solve these new scaling
challenges, devices designers came up with gate-all-
around (GAA) – or nanosheet – transistor architecture,
which consists of the channel with the gate totally
around it. In this new architecture, multiple nanosheets
are used to enable the correct current.
The resulting structure offers better electrostatic control
and is scalable beyond the FinFET design. Importantly,
this architecture also allows for scalability by offering a
path to further transistor stacking, i.e. CFET architecture
– where N - and P gates are stacked on top of each
other.
It is expected that 2025 will be the ramp year for GAA
devices. They have matured to the point where logic/
foundry device manufacturers have demonstrated viable
yields and end devices have incorporated this new
transistor design.
For ASM, it’s an important area for growth. 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. As discussed
at our 2023 Investor Day, we estimate that this
represents about US$400 million in additional ALD and Si
Epi served available market (SAM) – per 100,000 wafer
starts per month (WSPM) vs the last FinFET node – and
exciting areas for growth.
In the current environment of strong growth in AI and
new product development, GAA-based transistors offer
the potential to deliver higher capability with lower
energy usage for future data centers and end devices
like smartphones and PCs.
Introduction
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Appendix
ASM Annual Report 2024
15
Increased ALD and Epi SAM with move to GAA
Per 100,000 wafer starts per month
Source: ASM Investor Day 2023
FinFET
GAA
+ US$400 million
Evolution of logic device architecture
Planar FET
1960s
FinFET
First-gen
HVM: 2012
GAA
First-gen
HVM: 2025
CFET
HVM: 2030+
4.3 Our product technologies
Our products include wafer-processing systems for ALD,
epitaxy, PECVD, and vertical furnaces. We now also have
silicon carbide (SiC) epitaxy tools, following the
acquisition of LPE in 2022. We continuously drive
innovation of our products and services to address our
customers’ technology needs, and the industry’s focus
on reducing costs and improving its environmental
footprint.
Our development programs aim to increase throughput,
make our equipment more reliable, improve yield in our
customers’ manufacturing line, reduce energy and
resource intensity, and cost of ownership. Our
customers benefit from lower operating costs, as many
of our products use the same parts and consumables,
while a common control architecture improves ease of
use.
Our single-wafer tools are designed for use on a
common platform architecture. The XP platform is a
high-productivity, common 300mm single-wafer
platform that can be configured with up to four process
modules. The XP platform enables high-volume multi-
chamber parallel processing or the integration of
sequential process steps on one platform. Our XP8
platform follows the basic architectural standards of the
XP, but it offers even higher productivity with up to 16
chambers integrated on a single-wafer platform with a
relatively small footprint. The XP8 platform can be
configured with four dual-chamber modules (DCM),
enabling up to eight integrated chambers, or with four
quad chamber modules (QCM) for up to 16 integrated
chambers on the same platform.
ALD
ASM is the leader in the fast-growing single-wafer ALD
market – with a market share of around mid-50s
percentage (source: ASM estimates, Investor Day 2023).
Using ALD technology, we can scale devices to smaller
dimensions while reducing the power consumption of
transistors. This helps the industry follow Moore’s Law,
and create smaller, more powerful semiconductors. ALD
allows us to deposit thin films, atom by atom, on silicon
wafers. This means we can deliver atomic-scale
thickness control, high-quality deposition film properties,
and large area uniformity.
Such precision allows us to use materials that could not
previously be considered, and develop 3D structures
vital to the future of electronics. 3D technology provides
several benefits, including saving space while delivering
chips with higher performance that consume less power.
Many new applications are emerging where ALD is the
technology of choice. In some cases it is the only
solution able to meet the challenging technology
requirements. For example, ALD high-k gates are now in
production for high-performance DRAM devices. We are
seeing customers wanting more ALD applications for
each new technology node, driving high growth in the
ALD equipment market.
New applications include high-k metal gates for GAA
transistors, high aspect ratio gap-fill, underlayers for
EUV lithography, metal ALD, selective ALD, and others.
ASM has the broadest portfolio of ALD products with
innovative ALD reactor designs. Our strength in
chemistries and applications using new materials means
our customers can meet advanced node technology
challenges. We offer systems capable of thermal ALD
and plasma ALD.
In PEALD, plasma is used to provide the reaction energy
for the process, enabling us to use lower temperatures
for low-thermal budget applications. This technology
was originally introduced in DRAM and planar NAND
flash manufacturing for spacer-defined double
patterning (SDDP).
In 2022, ASM acquired Reno Sub-Systems, a supplier of
high-performance RF matching networks and RF
generators. RF power is used to generate gaseous
plasma in various semiconductor manufacturing
processes. Today’s complex devices require precise
control over the RF power delivered to the plasma
reaction chamber, especially when depositing material
on atomic scale, such as for PEALD. Reno’s EVC
(Electronically Variable Capacitor) technology provides
sub‑millisecond control over RF power delivery,
improving throughput and quality of the deposited film.
EVC technology, embedded in ASM’s plasma-based
deposition equipment, is an enabler for next generation
devices.
On our XP platform, we offer Pulsar and EmerALD single-
chamber ALD process modules for high-k dielectric and
metal gate films respectively. The Synergis ALD tool
uses the XP8 platform with DCM modules, and leverages
the core technologies from our Pulsar and EmerALD ALD
products for high-productivity thermal ALD applications.
Synergis is available for a range of films, including high-k
metal oxides, metal nitrides, and metals.
Also on the XP8 common platform architecture, we offer
PEALD processes for a wide range of applications. The
Eagle XP8 uses DCM module configurations for
high‑productivity silicon oxides, metal oxides, and nitrides.
Our XP8 QCM tool offers PEALD processing on quad
chamber modules for very high productivity. A wide
range of silicon oxide and silicon nitride process
applications are available with the QCM tool.
ASM platforms and products
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Financial statements
Appendix
ASM Annual Report 2024
16
ASM products
Process application
ALD
XP
• Pulsar XP ALD system
• EmerALD XP ALD
system
• High-k gate dielectric
• Metal gate layers
XP8
• Synergis ALD system
• Metal oxides
• Metal nitrides
• Metals
PEALD
XP8
• Eagle XP8 PEALD
system
• XP8 QCM PEALD
system
• Pattering layers
• Gate spacers and
liners
• Gap-fill
PECVD
XP8
• Dragon XP8 PECVD
system
• Low-k and TEOS oxide
• Silicon nitride
Diffusion oxidation LPCVD
Vertical
furnace
• SONORA batch vertical
furnace system
• A400 DUO batch
vertical furnace system
• Diffusion, oxidation
• Polysilicon
• Silicon oxide/nitride
• Aluminum oxide
Epitaxy
XP
• Intrepid ES epitaxy
system
• Intrepid ESA epitaxy
system
• Silicon channel
• Source/drain layers
• CMOS wafers
• Analog/power
Epsilon
• Epsilon 2000 single-
wafer epitaxy system
Silicon carbide epitaxy
• PE106A single-wafer
epitaxy system
• PE108 single-wafer
epitaxy system
• PE208 dual chamber
single-wafer epitaxy
system
• Silicon carbide
ALD tech explainer
Advantages of ALD
ALD is the only deposition technology capable of
meeting the coverage and film-property requirements
for complex 3D structures, such as the 3D-NAND
example shown below. Compared to CVD methods,
ALD has unmatched capability to conformally cover
3D structures with complex materials, with near-perfect
chemical composition and electrical properties control.
The graphic of the CVD A (1) case shows that the
deposited film (purple) does not fully cover the lower
portions of the structure. With some process
adjustments for the CVD B (2) case, coverage is
achieved but the film properties and chemical
composition are poor (blue) in the bottom area. The ALD
(3) graphic shows fully conformal coverage – and due to
ASM’s ALD technology methods, high-quality and
uniform film properties are achieved in all areas of the
structure.
ALD cycle
Starting with a clean surface
ALD is a surface-controlled layer-by-layer process that
deposits thin films one atomic layer at a time. Layers are
formed during ALD reaction cycles by alternately pulsing
precursors and oxidants, and purging by-products with
inert gas in between each pulse.
The repetition of the ALD cycles results in a layer-by-
layer growth of the deposited film. Because the ALD
process is self-limiting, due to the principle of surface
saturation, it results in films with a uniform thickness,
even over varied surface topographies (conformality).
The thickness of the film is precisely controlled by
adjusting the number of ALD cycles.
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ASM Annual Report 2024
17
Step 0
(1) Step
coverage not
OK
(2) Step coverage
OK, but properties
not OK
(3) Step coverage,
composition, and
properties all OK
CVD A
CVD B
ALD
Step 1
Step 2
Step 4
Step 3
The chamber is purged and the
first ALD layer is completed.
Then the cycle repeats for each
additional layer
An oxidant pulse comes in and
reacts with the surface
First precursor pulse comes in.
Precursor reacts with and
attaches to surface
The chamber is purged to remove
the by-products
Purge
Oxidant
By-product
Purge
By-product
Precursor
Our XP8 QCM tool excels in the 3D-NAND high aspect
ratio dielectric gap-fill application. This is where silicon
oxide films are deposited void-free in deep trenches that
are up to 100 times deeper than their width. In 2022, we
introduced TENZA ALD, an innovative process
technology that provides great film quality, conformal
coverage through the full trench, and the highest
productivity in its class.
ASM’s XP8 QCM tool
Epitaxy (Epi)
Si Epi is used for depositing precisely controlled
crystalline silicon-based layers, a critical process
technology for creating advanced transistors and
memories. The Epi market is growing quickly, driven by
increased complexity for advanced node applications
such as GAA transistors. ASM has the number two share
in the Epi equipment market, and we saw solid growth in
our 2024 Epi revenues. In addition to advanced
transistors Epi applications, one of our strengths in Epi is
in the growing analog/power segment.
Our most advanced Epi tool is the Intrepid ES for
transistor applications, using our XP platform to
configure up to four Intrepid reactors on the same tool.
Temperature control is extremely important in Epi
reactors. We have developed new methods of
temperature control in our Intrepid ES Epi tool that
enable improved film performance and repeatability in
volume production. Intrepid’s closed-loop reactor
temperature control brings enhanced stability in
production. Turino-CL is Intrepid’s new multi-point
pyrometer-based temperature-measurement system
that further improves temperature control performance.
For enhanced Epi film performance, we offer the Previum
process module, a pre-deposition wafer surface clean
technology, integrated with Intrepid epitaxy process
modules. The surface clean process is used prior to the
epitaxy deposition to create a pristine silicon surface for
defect-free epitaxy film deposition. This is critical for
achieving the most advanced node transistor-
performance requirements.
For silicon-based analog/power devices and wafer-
manufacturing applications, we offer our Intrepid ESA
tool for 300mm silicon-based epitaxy. The Intrepid
reactor architecture allows for thick Epi deposition in a
single pass, a significant productivity benefit for our
power and wafer customers. For 200mm epitaxy
applications, still relatively significant in the analog/
power market, we offer the Epsilon 2000 tool.
SiC Epi
SiC is ASM’s newest product line, following our
acquisition of LPE in 2022. The SiC epitaxy equipment
market has been growing fast due to the electrification
of the automotive industry. SiC devices provide greater
battery life and a longer range for EVs. Because of its
wide band gap, SiC is efficient at high voltages, offering
higher power efficiency, increased power density
resulting in reduced component weight and size, and
faster battery-charging times. The Power SiC device
market is expected to grow strongly at CAGR >25% from
2023-2029, and reach nearly US$10.4 billion by 2029
(Yole Intelligence 2024).
We have strengthened the SiC product offerings by
drawing on our global engineering, quality, supply chain,
and customer-support capabilities. Our SiC tools use an
epitaxy process to deposit the SiC material on either
bare substrates or as part of the transistor device
fabrication process.
In 2024, we announced the release of the PE208, a 6" or
8" single wafer epitaxy tool, with dual chambers - that
offers benchmark process uniformity as well as high
throughput. The transition to 200mm SiC is a major
technology inflection, which positions single-wafer
reactors like ASM's particularly well since the deposition
thickness and material uniformity control is more
challenging at 200mm.
PECVD and vertical furnaces
ASM is also active in the vertical furnace and plasma-
enhanced CVD (PECVD) market segments. While these
are each large segments, we are focused on niche
portions of the market.
Vertical furnaces use a batch configuration. This means
a large number of wafers are processed at the same
time for productivity and cost savings. We design our
furnace tools with dual-batch reactors for even more
productivity. A wide range of process applications are
available on our furnace tools, including LPCVD,
oxidation, diffusion, and cure.
Our furnace tools include the SONORA vertical furnace
for 300mm logic/foundry and memory applications, as
well as 300mm analog/power. SONORA has been placed
with leaders in advanced logic, and power device
manufacturing. We also offer the A400 DUO vertical
furnace for 200mm and smaller wafers, targeting analog/
power, RF, and MEMS applications. The A400 DUO has
achieved significant wins in the China market.
In PECVD, our key position is on low-k for advanced
logic interconnects. PECVD processes are offered on our
high-productivity XP8 platform. Our Dragon XP8 PECVD
tool addresses a broad range of dielectric films for
various low-temperature deposition applications, such as
interconnect layers, gap-fill, passivation layers, and etch
stop layers.
More information about our product technology can be
found on our website.
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Financial statements
Appendix
ASM Annual Report 2024
18
Spares & Services
All of ASM's technologies mentioned above come in the
form of sophisticated and complex systems that ship to
our worldwide customers. These are installed at their
fabs, along with other similar systems used in series to
create microchips.
Of course, our service capabilities and performance are
a key factor in our customer's equipment-selection
process. When customers choose ASM systems, it is
also based on how ASM's systems have performed on a
very limited scale – within our demo labs or during a
single system evaluation at the customer site. Once they
choose ASM to ramp into production, the customer
trusts that our system will meet their needs and enable
their success. Failing a customer during a production
ramp could cause them significant problems.
This is where ASM's Spares & Services team comes in.
We work on installing the tool in the customer fab, and
help to start them up so the tool can perform – with a
view to having them in production 24/7 for 20+ years, no
matter where they are in the world.
In the past few years, our Spares & Services has grown
its support beyond making sure trained maintenance
staff and spare parts are available, and systems are
running. Today, ASM provides what we call outcome-
based services. Its aim is to draw out ever-greater
performance from our installed base of systems, through
engineering-based improvements to the parts and
procedures we use. This can deliver improvements such
as fewer defects, longer parts and system life, better
film uniformities, more process repeatability, and,
ultimately, lower operating costs for our customers.
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Financial statements
Appendix
ASM Annual Report 2024
19
Epi tech explainer
Epitaxy is a high-temperature deposition process,
requiring precise temperature control to ensure that a
pristine crystalline film can be deposited. The graphic
below shows the steps in the Si Epi CVD process that
lead to the deposition of a crystalline film with the same
crystal structure as the material on which the film is
deposited. This process is crucial for advanced
semiconductor devices and its use is increasing.
Epi process
Whether as a blanket film or selectively deposited, high-
quality epitaxy films of silicon (Si), silicon germanium
(SiGe), silicon germanium boron (SiGe:B) and silicon
phosphorus (Si:P) play a key role in semiconductor
devices. They enhance electron mobility, which enables
faster transistor switching at lower power, and by
controlling the dopant (boron or phosphorous)
concentration enable just the right amount of electrical
conductivity.
Creating a pristine crystalline layer is a challenging task.
The ability to control temperature is one of the most
important attributes of advanced epitaxy deposition.
ASM has advanced the state of the art in temperature
control in our epitaxy tools that enable improved film
performance and repeatability in volume production.
ASM’s innovations in Si Epi
Among the many innovations of ASM epitaxy, the
Intrepid ES and ESA products both utilize an isothermal
chamber, as well as our proprietary Turino-CL direct
temperature measurement and feedback system to
monitor and manage temperature with high precision,
which is needed to make the highest quality epitaxy for
high-performance devices.
Using multiple pyrometers – which directly measure the
top of the wafer surface temperature – we are able to
provide a higher-performance temperature control loop
in our epitaxy systems, versus the alternative method of
measuring the temperature of the susceptor, and from
that inferring the wafer temperature. This translates into
better thickness uniformity control, faster ramps for
higher productivity, and lower energy consumption.
In addition to providing productivity benefits, this precise
control has enabled a strengthened position in epitaxy
for the current logic GAA transition and has
demonstrated the necessary control to apply to other
applications as they evolve and grow.
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Financial statements
Appendix
ASM Annual Report 2024
20
Step 1 - Transport of reactants
Carrier gas and precursor are
transported to wafer surface
Step 2 - Adsorption of reactants
Adsorption reactants on the wafer
surface
Step 3 - Surface reactions
Reaction, migration, and
attachment to wafer surface
Step 4 - Byproducts desorption and
transport
Desorption and transport of
byproducts by carrier gas
5. Engaging our customers closely and early
ASM is committed to giving customers the best
products and services, helping them achieve
their device and process technology goals. ASM
has an unwavering dedication to innovation, and
works with customers closely and early in each
development cycle to make sure our products
meet their roadmap requirements, with service
teams on hand at global fabs providing ongoing
equipment and process support.
We focus on value creation for our customers,
continuously improving our products to support their
technology roadmaps, increase productivity, lower
operating costs per wafer, and enable next-generation
chips.
A key goal of our customers is to build faster, cheaper,
and increasingly more powerful semiconductors with
reduced power consumption for each new technology
node. We collaborate with them closely to make this
happen, forging mutually beneficial partnerships to help
develop next-generation technologies. Through our
intensive R&D programs and customer co-development,
we continuously improve and extend the capability of
our products and processes to meet these advanced
technology roadmaps.
Critical to our success is close and early collaboration
with leading customers and suppliers, global research
institutions, such as imec, and key universities. Having
our R&D, engineering, and service professionals engage
in these close and early collaborations also drives us to
keep on pushing boundaries, and to continue to focus on
advancing new cutting-edge innovations, aiming to stay
ahead of what’s next. The result is value creation for our
customers.
Continuously developing and maintaining strong
relationships underpins mutual progress, and ASM
engages with our customers throughout our
organization. Our account teams are close to our
customers' fabs for day-to-day interaction in sales,
product and process support, spare parts, etc., and are
providing support for our customers’ production ramps.
Our product development and technical product-support
groups, meanwhile, engage with customers on issues in
manufacturing, product-improvement projects, joint
development programs, and discussions about
requirements for next generation technology roadmaps.
Periodic customer and ASM executive meetings serve to
strengthen our business relationships and share
commitments.
ASM is continuing to focus on strengthening our quality
organization and processes to support our product
performance, customers' goals in fab operations, and
efficiencies. We serve society by helping our customers
produce chips for the advanced electronics that deliver
improvements and opportunities across many aspects of
our lives. While doing so, we work at the edge of what is
technologically possible, creating an attractive
professional and learning environment for our
employees, and generating long-term value for all our
stakeholders.
We engage with – and are responsive and committed to
addressing – the broad range of our customers'
sustainability expectations, including detailed inquiries
and periodic audits. To expand our contribution and
impact, we collaborate with our customers on
sustainability topics wherever possible.
Customer recognition
In 2024, several key customers recognized ASM for
equipment performance and support:
• In December, at their Supply Chain Management
Forum, TSMC presented ASM with an award for
Excellent Performance in 2024, marking the fourth
consecutive year ASM has received this recognition.
The award highlighted ASM’s role in the ongoing
expansion of TSMC’s global footprint as well as our
crucial contribution to its growing production capacity
for advanced process technology nodes.
• A large customer in Korea honored us in November
with an Outstanding Collaboration Award for our joint
research and development work. In December, from
the same customer, we also received an Appreciation
Award for our outstanding work in improving tool
uptime in memory high-volume manufacturing.
• In March 2024, Intel presented ASM with its 2024
EPIC Outstanding Supplier Award, the highest award
level within the Intel EPIC Supplier Program,
recognizing the highest performance across all
measures. Being among the six suppliers chosen by
Intel in 2024 is a significant achievement for our team.
• We are also honored to report that in 2024 a total of
14 customers in China gave ASM supplier awards,
including awards for fast installation, best support
services, and excellent safety management.
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Financial statements
Appendix
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21
6. Our business model
ASM’s business model emphasizes early phase
R&D, collaboration, and wide-ranging customer
engagement. At our R&D labs in Helsinki,
Finland, we focus on early-stage R&D for
developing new materials and precursor
chemistries. A critical component is close and
early collaboration with global research
institutions, such as imec, key universities,
suppliers and leading customers.
Early collaborations are particularly beneficial
during the new product development phase,
when each of our product lines designs and
implements new systems and processes to
meet upcoming customer roadmap
requirements. Next to technical performance
and cost of ownership, sustainablity targets are
an integral part of product design. When new
products are ready, ASM often places
evaluation tools at key customer sites to
demonstrate critical performance factors and to
optimize the equipment and process
technology.
When evaluations and product enhancements
are completed, and ASM has been selected as
the production tool of record (PTOR) supplier,
new products are ready to be shipped to
customers for high-volume manufacturing
(HVM). At this point, our manufacturing site is
ready for volume manufacturing of the new
products. While our customer support teams
are already engaged at the evaluation phase,
the on-site service, spare parts management
and process support activities ramp up
substantially for HVM.
Over time, our products already installed and in
production are involved in CIP, or continuous
improvement program activity, a focused effort
to further optimize the product performance
based on the learnings and results in the
customer fab environment. Furthermore, from a
longer term and sustainability and circularity
perspective, we look to extend the product’s
lifecycle with a team that works on
refurbishment and upgrade solutions for our
installed base. We actively work with customers
to implement improvements, so existing
products can continue operating even as
technical requirements become more
challenging.
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Financial statements
Appendix
ASM Annual Report 2024
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Customer collaboration/ supplier collaboration/ university & research institute collaboration
Phase 1
Materials and early R&D
Phase 2
New product development
& evaluations
Phase 3
Product introduction
and high-volume
manufacturing
Phase 4
Product improvement
& refurbishment
programs
Focus on sustainability in our own operations, with suppliers and customers
7. Strategy
24
8. How we create value for our stakeholders
26
9. CFO message
28
10. Financial performance
31
11. Interview with our Chief People Officer
39
12. Leading-edge innovation
43
13. Operational excellence
50
14. Sustainability highlights
53
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23
Strategy and
performance
7. Strategy
We are an innovation leader in the
semiconductor industry. This is the result of our
focus on key issues and challenges within the
industry, enabling us to make a difference to and
create value for our customers, employees,
investors, and other company stakeholders,
while we continue to bring our breakthrough
technologies into volume manufacturing.
We operate in a fast-moving industry and ever-changing
world. That's why our core values – We Care, We
Innovate, We Deliver – are the cornerstones of who we
are, what we believe, and how we act. We prioritize a
workplace that fosters Accountability, Collaboration and
Empowerment (ACE), behaviors that support our values
and enable our culture. As our industry continues to
develop at speed, this is what guides us, as we work to
stay ahead of what's next.
Our purpose is to improve people's lives through
advancing technologies that unlock new potential.
Our mission is to enable our customers’ success by
creating leading-edge semiconductor process products,
services and new materials.
Key elements and enablers of our
strategy
Our strategy is based on the following six strategic
objectives:
1. Grow ALD business Our ALD business is a key
priority and we aim to grow it by maintaining
leadership in logic/foundry and expanding in memory.
We also expect the ALD market to be the fastest-
growing segment in the deposition market in coming
years, as ALD requirements will continue to increase
in the next nodes. We are focused on maintaining our
leading position in the logic/foundry segment, and
increasing our market share in memory. We estimate
that the single-wafer ALD market will grow to
US$4.2-5.0 billion in 2027. Our goal is to maintain a
market share larger than 55%.
2. Increase Si Epi market share Silicon epitaxy has
become a second growth engine in our product
portfolio. Our Intrepid product has enabled us to make
successful inroads in the advanced CMOS part of the
Epi market, while increasing our presence in the
analog/power market. In R&D, we are working with
multiple customers on new Epi applications for the
next nodes, which should further grow our market
share. We estimate the silicon Epi market will increase
from US$2 billion in 2022 to US$2.3-US$2.9 billion in
2027. We aim to increase our market share to more
than 30% by the end of 2025.
3. Selective growth in vertical furnaces (VF),
PECVD and SiC Epi niches We want to develop our
niche positions through targeted growth
opportunities. In the vertical furnace business, for
example, we have expanded our position in analog/
power market on the back of new product
introductions. With the acquisition of LPE in 2022, we
entered the SiC Epi market, which
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Financial statements
Appendix
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Core values
We Care
We Innovate
We Deliver
Best practice
behaviors ACE
Accountability
Collaboration
Empowerment
Purpose
Improve people’s lives through advancing technologies
that unlock new potential
Mission
Enable our customers’ success by creating leading-edge
semiconductor process products, services, and new materials
Grow ALD business by
maintaining leadership
in logic/foundry and
expanding in memory
Selective
growth in VF,
PECVD and
SiC Epi niches
Grow Spares
& Services
business
Increase Si Epi
market share
Drive strong
financial
performance
Accelerate
sustainability
Strategy enablers
• Best people
• Leading-edge innovation
• Early customer engagements
• Flawless operational excellence
• Strong financial position
Strategic
objectives
4. complements our silicon epitaxy offerings, and is
expected to be an attractive long-term growth
market.
5. Grow Spares & Services business We are growing
our Spares & Services business faster by focusing on
our differentiated outcome-based services. These
services deliver a clear, quantifiable result at a much
lower cost than the value brought to them. An
example is our Complete Kit Management (CKM),
which contributes to improved uptime of our tools in
customers’ fabs, bringing them operational cost
savings. Our focus on new outcome-based services
has allowed us to grow our Spares & Services revenue
at a higher rate than in the past.
6. Accelerate sustainability We aim to be
sustainability leaders within our industry and achieved
several key milestones in 2024. Our inaugural Climate
Transition Plan maps the path to achieving our Net
Zero by 2035 target. ASM's global operations are now
powered by 100% renewable electricity, reducing the
company’s environmental footprint. As the continued
chair of the Semiconductor Climate Consortium, ASM
drives industry-wide collaboration for an accelerated
path of climate action. The introduction of our first
Human Rights policy reinforces our commitment to
ethical and responsible business practices. Focused
on transparency and innovation, we continue to
deliver progress and lasting value for stakeholders.
7. Drive strong financial performance Healthy
profitability will allow us to continue investing in
growth. To this end, we have drawn up our
profitability targets for the period 2024-2027. We
strive to achieve gross margins of between 46% and
50%, and an operating margin of 26% to 31%,
generating strong free cash flow.
Our five strategic enablers
To be able to realize our strategy and strategic
objectives, we identified five critical enablers. All our
activities are focused around these elements:
1. Best people Our people are at the heart of our
company's success. We strive to create a safe,
inclusive, inspiring, and motivating workplace where
our employees are able to use their talents, excel, and
develop their potential as we work together to deliver
the cutting-edge technologies of tomorrow. As our
workforce rapidly expands, we are focusing on
strengthening ASM. This means developing our talent
pool with more long-term career progression and
training. It also means strengthening and unifying our
culture, based on our core values – We Care, We
Innovate, We Deliver – and our ACE behaviors
(Accountability, Collaboration, Empowerment).
2. Leading-edge innovation The core part of our
overall growth strategy is continuous innovation – this
is to provide ASM with a leading technological
competitive advantage. With R&D centers in seven
countries, we have helped shape today's leading-
edge semiconductor products by driving innovation
through our collaborative R&D models. In addition, we
are making capital investments in lab space and
equipment to further expand our development
capabilities in next-generation technologies. As well
as our internal R&D efforts, we are growing and
deepening our strategic cooperation with key
customers, suppliers, chemical manufacturers, and
research institutes.
3. Early customer engagements We have strong
customer relationships with the leading
semiconductor manufacturers, working closely
together in the early stages of their device roadmaps.
As we have expanded and deepened our R&D
engagements with chipmakers, we have developed
our understanding of the key requirements of the next
generation of device roadmaps. This is enabling us to
develop value-added solutions to the industry’s
critical technology issues.
4. Flawless operational excellence While
technology leadership remains crucial, we see
operational excellence as essential to strengthen our
future position. We aim to provide our customers with
dependable, leading-edge products and services at a
consistent performance level, while providing the best
total cost of ownership.
5. Strong financial position We strive to maintain a
strong balance sheet that allows us to continue
investing in R&D and the growth of our company. To
this end, our target is to maintain a minimum amount
of cash on our balance sheet – €600 million in the
period until 2027.
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Leadership and governance
Financial statements
Appendix
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8. How we create value for our stakeholders
Our purpose is to improve people's lives through
advancing technologies that unlock new
potential. We serve society by helping our
customers produce chips for the advanced
electronics that deliver improvements and
opportunities across many aspects of our lives,
as well as the planet. Our innovations and
leading-edge technologies, such as our
ALD products, enable our customers and our
industry to develop faster and more
energy‑efficient semiconductors.
Accelerating sustainability is one of the pillars of our
strategy. ASM's sustainability focus areas are Innovation,
People, Planet, Responsible supply chain, and
Governance. In Planet, as an example, we have
prioritized focus on climate response. After announcing
our Net Zero by 2035 ambition in 2021, our net-zero
targets were verified by SBTi in 2023. In 2024, we
published our inaugural Climate Transition Plan. We aim
to collaborate with stakeholders across our value chain
with the ambition to bring faster and more meaningful
change to the environmental challenges facing the world
today. A key example is our leading role in co-founding
the Semiconductor Climate Consortium (SCC), and
serving as its chair person.
To further accelerate our sustainability journey, we have
taken additional steps to integrate 'Design for
Sustainability' considerations into our product portfolio.
Our latest equipment innovations prioritize energy
efficiency and resource conservation, reducing
environmental impact across the semiconductor value
chain. Through these efforts, we aim not only to
minimize our own footprint but also to help our
customers reduce their environmental impact.
Innovation is in our DNA. We work at the edge of what is
technologically possible, creating an attractive
professional and learning environment for our people. As
we aspire to be an employer of choice for existing and
future talents, we are constantly focused on improving
our employee experience. Our 2024 employee
engagement survey had a high response rate of 95%. On
diversity and inclusion, we are focused on increasing the
participation rate of women, with a target of 20% women
workforce by 2025. We were at 18% at the end of 2024
(2023: 17%). In safety, our vision is ZERO HARM!, where
we foster a safety leadership culture regardless of role.
This means we strive to prevent all incidents and injuries,
regardless of severity or impact. We prioritize and focus
on prevention, meaning we aim to remove all exposure
to harm. Our 2030 target is to reduce our total
recordable injury rate to 0.15, a reduction of 38%
compared to 2024 (0.24).
Our mission is to enable our customers' success. We
focus on value creation for our customers, by
continuously improving our products to support their
technology roadmaps, to lower cost of ownership, and
enable next-generation chips. Critical to our success is
close and early collaboration with our customers, to
make sure our products meet their requirements, with
service teams for ongoing equipment and process
support. To expand our contribution and impact, we
collaborate with our customers on sustainability topics
wherever possible. As an example, through innovation
we aim to further improve the energy and resource
efficiency of our products.
Our suppliers are key partners. As we grow our business,
the opportunities for our suppliers increase. ASM
continues to expand its global supply chain to support
the need for technology, capacity, flexibility, and
sustainability. Together with our suppliers, we can create
positive impact for our stakeholders, the planet, and
society overall – well beyond our individual scale. We
strive to further build on a sustainable, responsible
supply chain, with a focus on areas such as worker
safety, environmental footprint, and human rights.
As part of our responsible supply chain efforts, we have
strengthened our supplier engagement framework. This
includes enhanced due diligence practices and capacity-
building programs that help suppliers align with our
stringent environmental and social responsibility
standards. By fostering a culture of continuous
improvement, we ensure that sustainability remains a
shared goal across our entire value chain.
We create value for our shareholders as we focus on
long-term sustainable growth. Leveraging our advanced
technologies and our positions in fast-growing markets
such as ALD, we aim to deliver revenue growth of on
average 11%-16% annually in the 2022-2027 period, with
healthy operating margins of 26%-31%. We aim to
maintain a strong financial position. Our key capital
allocation priority is to invest in the growth of our
business. We are committed to our sustainable dividend
policy and to return excess cash to our shareholders.
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Strategy and performance
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
26
8.1 Our value-creation model
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
27
Capital
Input
Financial
• €927 million cash position,
no debt
• €168 million capex
Innovation
• 25% of employees in R&D
• Gross R&D spending of
€470 million
• 8 R&D centers globally
• Partnership with imec and
University of Helsinki
People
• 4,632 employees
• 69 nationalities
• 18% women
Planet
• 82,194 MWh total electricity
consumption, 100% of which
from renewable sources
• €1,141 million in materials
and supplies spend
Impact
Our financial health enables long-term
value creation and attractive
shareholder returns
Our innovations in deposition
technology enable next-gen
semiconductors that contribute to the
digital and sustainable advancement
of society
Creating a dynamic, inclusive, and
safe workplace where innovation can
thrive and personal growth is
encouraged
Contributing to global sustainability
efforts through responsible resource
stewardship, fully powered by
renewable electricity in 2024
Value creation stage
Strategic objectives
Mission
Enable our customers’ success by creating leading-edge
semiconductor process products, services and new materials
Core values
We Care
We Innovate
We Deliver
Best practice
behaviors ACE
Accountability
Collaboration
Empowerment
Grow ALD business by
maintaining leadership
in logic/foundry and
expanding in memory
Selective
growth in VF,
PECVD and
SiC Epi niches
Grow Spares
& Services
business
Increase Si Epi
market share
Accelerate
sustainability
Purpose
Improve people’s lives
through advancing
technologies
Drive strong
financial
performance
Output
• €2.9 billion revenues (+11%
yoy)
• Gross margin 50.5%
• Free cash flow €548 million
• 3,395 patents in force (+15%)
• Leading position in ALD
technology
• Growing position in silicon epitaxy
(Si Epi)
• €595 million personnel
expenses
• 53,103 technical training hours
• 0.47 total injury rate
• 3.8 kilotonnes Co2e (market-
based) Scope 1 and 2 GHG
emissions (down 52% YoY)
• 2,359 tonnes non-hazardous
waste, of which 82% is reused or
recycled.
9. CFO message
Paul Verhagen
Member of the Management Board and Chief
Financial Officer
Against a backdrop of mixed market conditions,
ASM continued to deliver strong financial results
in 2024. AI was the key growth area, fueling
investment in the new gate-all-around (GAA)
node and high-bandwidth memory (HBM). Our
operating result as reported improved by 23%
due to continued revenue growth with higher
gross margin and strict SG&A cost control, even
while we increased R&D investments. Our
financial position remains strong, supported by
record free cash flow in 2024.
Another year of double-digit performance
amidst mixed market conditions 2
ASM’s revenue increased to a new record-high level of
€2.9 billion. Compared to 2023, this was an increase of
12% at constant currencies, outperforming WFE market
growth and marking our eighth consecutive year of
double-digit growth. The semiconductor end market
increased by 18%, recovering from a 10% drop in 2023.
This recovery was uneven, however, with AI driving
growth while most other end markets were weak.
Strong growth in AI data center investments drove
robust demand for advanced logic/foundry devices, such
as GPUs, and related high-band memory solutions. The
recovery in large-volume segments, such as
smartphones and PC, remained slower than industry
observers initially predicted at the start of the year, amid
continued economic uncertainty, sluggish consumer
spending, and geopolitical tensions.
The industrial and automotive semiconductor markets
experienced a downturn in 2024. The WFE market
increased by a mid-single-digit percentage in 2024.
While we achieved consistent quarter-to-quarter sales
growth throughout the year, the mix of our business
changed markedly from the first to the second half. In
the first part of the year, the Chinese market made an
exceptionally strong contribution, while the leading-edge
logic/foundry market continued to be relatively soft. In
the second half, Chinese sales declined moderately,
while leading-edge logic/foundry markets gained
momentum, and our memory sales also increased.
“AI was the key area of growth for the
semiconductor market in 2024.”
GAA: a key driver for ASM
Our advanced logic/foundry business remained at a
lower level in the first half of 2024, following the softer
market conditions in 2023. Throughout 2024, the new
2nm GAA node began to generate increased revenue. In
the first half, however, this revenue was limited as tool
shipments were primarily focused on customers' pilot
lines. In the second half of the year, the shipments mix
increasingly shifted towards high-volume manufacturing,
resulting in a significant increase in related sales
compared to the first half. The 2nm GAA node will be a
strong inflection for ASM, as more ALD and Epi will be
required in the manufacturing process. This transition is
expected to increase our served available market by
US$400 million (per 100K monthly wafer starts capacity).
The 2nm GAA technology is expected to enable next-
generation semiconductor devices that will meet the
computational demands of advanced AI applications in
the coming years. In 2025, we anticipate a substantial
increase in our GAA sales, driven by customers moving
into the high-volume manufacturing phase.
“Amidst mixed market conditions, 2024
was again a year of double-digit revenue
growth for ASM.”
China sales at exceptional level in first half
In the first half of 2024, relatively lower sales in our
advanced logic/foundry segment were offset by
continued strong demand in the Chinese market.
Building on the strong growth experienced in 2023, our
China sales further increased to an exceptional level in
the first part of 2024. Sales in the power/analog/wafer
segment were lower in the first half, but were offset by
strong demand in the mature logic/foundry segment.
Following export regulations in 2022, several logic/
foundry players moved their focus to more mature nodes
such as 28nm. While ASM's involvement in such older
nodes is relatively limited, the substantial number of new
28nm fab projects in China still added to a substantial
sales contribution.
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Appendix
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28
2 Adjusted figures are non-IFRS performance measures. For a reconciliation of non-IFRS performance measures, see the table at the end of section 10.1.
In the second half of 2024, our China sales decreased
compared to the first half, in line with the expectation
that we first communicated in February 2024. We
believe this decrease reflects digestion and a
normalization following exceptional spending levels. We
expect this normalization to continue in 2025. We expect
the contribution of China equipment sales to amount to a
low to high 20s percentage of total 2025 ASM revenue,
as communicated in December 2024. This forecast takes
into account the expected impact from new US export
control regulations announced on December 2, 2024.
“The GAA node will be a strong inflection
for ASM.”
Strong rebound in memory
Memory was the strongest growing segment in 2024,
both for ASM and the WFE industry. Following the steep
decline in 2023, AI-related demand for high-bandwidth
memory triggered a recovery in overall memory market
conditions, even though parts that are more exposed to
the PC and smartphone markets remained mixed. HBM
applications require the most advanced DRAM devices,
which is beneficial for ASM as more ALD steps are
required for these devices.
Our memory equipment sales strongly increased in 2024,
accounting for 25% of total equipment sales, up from a
relatively low level of 11% in 2023. This increase was
driven for the most part by DRAM, in particular for HBM
applications. Our sales to 3D-NAND customers roughly
doubled in 2024, but this was compared a very low base
in 2023, and accounted for the smaller part of our total
memory business in 2024.
The power/analog/segment, which nearly doubled its
sales in 2023, experienced a meaningful contraction in
2024. This segment has significant exposure to the
industrial and automotive end markets, which slowed
down in 2024. Over the past few years, we have
expanded our positions in these segments, including in
China, on the back of new innovative products such our
SONORA vertical furnace. We are confident our power/
analog/wafer segment will recover once market
conditions improve, which is however not expected
before the end of 2025.
At constant currencies, our equipment sales increased
by 9%. Our ALD product lines were the primary driver,
accounting for clearly more than half our equipment
sales in 2024, supported by robust demand from logic/
foundry and DRAM customers. Our Si Epi sales
experienced a slight decline. While we saw solid
momentum in GAA-related Epi sales, this was offset by
the cyclical market downturn in power/analog/wafer
markets. After achieving record-high sales in 2023,
vertical furnace sales also dropped in 2024, reflecting
the softer power/analog/wafer market conditions.
Our SiC Epi sales increased by a mid-single digit
percentage in 2024. While this growth is significantly
lower than we expected at the start of the year, we
believe this is a robust performance compared to overall
SiC Epi market, which was impacted by slowing EV end
markets in the course of the year.
Following customer wins in the US and Europe in 2023,
we further expanded our customer base in 2024. While
there is no sign of recovery in 2025, we believe the
longer-term outlook for the SiC market remains positive.
Strong growth in Spares & Services
Spares & Services had a very strong year, with sales 29%
higher at constant currencies. Relative to total sales,
Spares & Services increased from 16% in 2023 to 19% in
2024. In Q3 and Q4 of 2024, growth was above the
trend line due to accelerated demand from China. More
structural drivers for our Spares & Services include the
increasing installed base as well as strong growth in our
outcome-based services offering. Since we started to
roll out these new services in 2020, we have increased
our Spares & Services sales at an average annual rate of
19%. As announced with our Q4 2024 results, starting in
2025, we are changing the reporting definition of Spares
& Services to include installation & qualification revenue,
aligning with our business organization structure at ASM.
Based on the new definition, Spares & Service revenue in
2024 would have been 21% of the total.
“Gross margin was positively impacted
by mix in 2024, supported by a continued
strong sales contribution from China.”
Gross margin increased due to mix
Gross margin increased from 49.3% in 2023 to 50.5% in
2024, primarily driven by mix effects, in addition to
ongoing cost focus3. In the first quarter, adjusted gross
margin reached an all-time high of 52.9% thanks to a
generally strong mix, including record sales to China. In
the second and third quarter, it remained solid at 49.8%
and 49.4%, respectively, partly due to the continued
contribution of China sales. In the fourth quarter, gross
margin came in at 50.3%, due to very strong mix, and
despite a lower, though still healthy, contribution from
China sales.
For 2025, we expect the gross margin to be in line with
our mid-term guidance of 46-50%
R&D
Net R&D expenses were up 20% in 2024 (both on a
reported and adjusted basis), due to R&D headcount
growth – up 6% in 2024 – and to increased amortization
charges for several development projects that entered
the commercial release phase.
For 2025, we expect adjusted net R&D expenses to be at
the top end of our mid-term guidance of high-single to
low-double digits as a percentage of revenue, or even
slightly higher, in line with our indications at our Investor
Day 2023. This is driven by our increasing pipeline of
opportunities, including our engagements with key
customers for the next-generation GAA applications, and
new ALD and Epi layers in next memory nodes.
SG&A
SG&A expenses increased 3% in 2024 (both on a
reported and adjusted basis). This was a meaningful
moderation compared to increases of 12% in 2023 and
46% in 2022. As explained on earlier occasions, the
increase in SG&A in prior years reflected increased
investments to strengthen the organization and business
processes in view of the growth of ASM. Most of these
investments were completed in the course of 2023,
although we continue to increase spending in areas such
as customer support and IT.
In 2025, we expect adjusted SG&A as a percentage of
revenue to further decline, reaching a high single-digit
percentage of sales, which meets our mid-term target
for this metric.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
29
3 Gross margin PPA amortization came to an end in 2023. Gross margin amounted to 48.3% on a reported basis.
We remain focused on efficiency improvements. An
important digitization project is the transition to
S/4HANA. We made good progress in 2024, and while
we experienced a delay of a few months, the project
remains on track for completion in 2025. The
implementation will help us integrate and optimize
business processes, enabling real-time data
management and streamlining operations in a
centralized and scalable way.
Operating margin
Our operating result came in at €802 million, up 23%
versus 2023 on a reported basis, supported by higher
gross profit and a moderation in SG&A, and partially
offset by higher R&D expenses. The operating margin as
reported increased from 24.8% in 2023 to 27.4% in
2024. Adjusted for PPA, operating margin improved from
26.6% to 28.0%.
“We generated a strong free cash flow,
up 23% in 2024.”
Free cash flow, capex, and cash position
In 2024, we generated a strong free cash flow of €548
million, up from €447 million in 2023, despite higher
capex and working capital. Higher working capital led to
a cash outflow of €21 million compared to a cash inflow
of €44 million in 2023. The increase in working capital
was mainly due to a rise in accounts receivable, which
resulted from the timing of tool shipments and related
payments. This increase was partly offset by higher
contract liabilities and accounts payable. The number of
working capital days decreased from 60 days in 2023 to
50 days in 2024.
Capex increased to €168 million in 2024, up from €154
million in 2023 and was within our guidance of €100-180
million per year. In 2024, our capex was primarily
focused on expanding our R&D facilities. This included:
our new facility in Hwaseong, Korea, scheduled for
completion in 2025; the start of our investment program
for our new R&D facility in Scottsdale, Arizona; and
investments in additional lab equipment.
“Investment in continued future growth
remains a top priority.”
It will be another year of continued investments in 2025
as we advance the upgrade plan for our R&D facilities.
Regarding our cash flow outlook in 2025, it's important
to note the anticipated earn-out payment of €100 million
for LPE, previously disclosed at the time of the
acquisition in 2022.
Our cash and cash equivalents position increased to
€926 million, up from €637 million at the end of 2023,
driven by a strong free cash flow generation.
Capital allocation
Our capital allocation priorities are unchanged. Our
primary focus continues to be investing in our company's
future growth, as demonstrated by our investments in
new and expanded innovation infrastructure.
We continue to scan the market for M&A opportunities
that could create value and strengthen our position in
the deposition markets.
We also strive to maintain a solid balance sheet that
enables us to execute on our growth strategy.
Accelerating sustainability
In 2024, we made further progress in stepping up our
sustainability commitments. Key achievements included
the transition to 100% renewable electricity in our global
operations, and the launch of our Climate Transition
Plan. A highlight is our Annual Report 2024, which marks
our first report under the Corporate Sustainability
Reporting Directive (CSRD). Preparing this report
required significant effort from many ASMers, and we
believe it represents a strong initial disclosure that meets
CSRD requirements.
A key change in our reporting process was the adoption
of the Double Materiality Assessment (DMA). This
assessment provided us with valuable insights into two
key areas: how our business impacts sustainability
factors and how external sustainability priorities affect
our business. These insights have helped us refine and
sharpen our strategy.
The CSRD helped us to focus assurance of non-financial
information on the material topics. This significantly
enhanced the transparency and depth of our
disclosures.
2025 outlook
Market conditions continue to be mixed looking into
2025, with WFE spending expected to increase slightly.
Leading-edge logic/foundry is expected to show the
highest growth in 2025. In memory, we expect healthy
sales in 2025, supported by continued solid demand for
HBM-related DRAM, although it is too early to tell if
memory sales will be at the same very strong level as in
2024. The power/analog/wafer segments are still in a
cyclical correction with no signs of a recovery in the near
term. In SiC Epi, the outlook further weakened. Our China
revenue is expected to decrease in 2025.
We confirm our target for total ASM revenue in a range
of €3.2-3.6 billion in 2025, but it is too early to provide a
more specific forecast due to market uncertainty and as
visibility for the second half of the year is still limited.
Paul Verhagen
March 6, 2025
Member of the Management Board and Chief Financial
Officer
Introduction
Strategy and performance
Sustainability statements
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Financial statements
Appendix
ASM Annual Report 2024
30
10. Financial performance
ASM delivered a robust performance in 2024. Revenue increased by 11%, outperforming the WFE
market. Gross margin increased to 50.5%, supported by a positive mix. Operating result improved by
23%, while stepping up investments in R&D. Free cash flow was up 23% to €548 million4.
10.1 Performance review
Order intake and backlog
For the full year 2024, bookings increased by 23% to €3.0 billion. This increase compares to a drop of 23% in 2023,
when orders were impacted by weakness in the advanced logic/foundry segment and a sharp drop in memory. The
main drivers for the increased orders in 2024 were the advanced logic/foundry segment, memory, and Spares &
Services.
In memory, orders were sharply higher due to strong demand for high-bandwidth memory-related DRAM (HBM
DRAM) solutions. In advanced logic/foundry, orders for GAA-related tools steadily increased in the course of 2024 as
customers moved from pilot-line phase towards high-volume manufacturing preparations.
Looking at the pattern within the year, order intake gradually increased to €698 million in the first quarter, and €755
million in the second quarter, on the back of rising gate-all-around (GAA) and HBM orders, and continued strength in
China orders. In the third quarter, orders increased further to €815 million, with the upside driven by orders pulled in
from the fourth quarter. For mostly that reason, orders in the fourth quarter decreased sequentially to €731 million.
At the end of 2024, our backlog amounted to €1,566 million, up from €1,433 million at the end of 2023. The book-to-
bill ratio, measured by orders divided by revenue, was 1.0 in 2024, slightly up from 0.9 in 2023. Equipment bookings
in 2024 were led by foundry, followed by memory, logic, and then power/analog/wafer.
Year ended December 31,
(€ million)
2023
2024
% Change
Backlog at the beginning of the year
1,669.2
1,433.5
(14) %
New orders
2,438.2
3,000.0
23 %
Revenue
(2,634.3)
(2,932.7)
11 %
FX-effect
(39.6)
64.9
Backlog at the end of the year
1,433.5
1,565.7
9 %
Book-to-bill ratio (new orders divided by revenue)
0.9
1.0
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
31
4 Free cash flow is a non-IFRS performance measure and it is calculated as cash flows from operating activities after investing activities.
Adjusted figures are non-IFRS performance measures. For more information about non-IFRS performance measures, see chapter 34. For a reconciliation of adjusted and reported figures, see table at the end of this section..
Operating performance overview
(€ million)
2023
2024
Change
Revenue
2,634.3
2,932.7
11 %
Gross profit
1,271.7
1,481.4
16 %
Gross margin
48.3 %
50.5 %
Adjusted gross profit 1
1,298.6
1,481.4
14 %
Adjusted gross margin 1
49.3 %
50.5 %
Selling, general and administrative expenses
(308.7)
(316.8)
3 %
Adjusted selling, general and administrative expenses 1
(303.9)
(311.9)
3 %
Net research and development expenses
(309.3)
(369.8)
20 %
Adjusted net research and development expenses 1
(295.3)
(355.8)
20 %
Operating result
653.7
802.1
23 %
Operating margin
24.8 %
27.4 %
Adjusted operating result 1
699.5
821.0
17 %
Adjusted operating margin 1
26.6 %
28.0 %
Share in income of investments in associates
17.5
9.6
(7.9)
Reversal of impairment of investments in associates, net
215.4
-
(215.4)
Net earnings
752.1
685.7
(66.4)
Adjusted net earnings 1
583.2
708.4
125.2
Net earnings per share, diluted
€15.18
€13.89
(1.3)
Adjusted net earnings per share, diluted 1
€11.77
€14.35
2.6
1 Adjusted figures are non-IFRS performance measures. For a reconciliation of non-IFRS performance measures, see the table at the end of
this section.
Revenue
Year ended December 31,
(€ million)
2023
2024
% Change
Equipment revenue
2,205.8
2,385.3
8 %
Spares & Services revenue
428.5
547.4
28 %
Total
2,634.3
2,932.7
11 %
Total revenue grew by 11% year-on-year and by 12% at constant currencies. Equipment revenue, which accounted
for 81% of total revenue, grew by 8% in 2024 as reported, and by 9% at constant currencies.
By customer segments, equipment revenue in 2024 was led by the foundry segment, followed by memory, logic, and
then power/analog/wafer. Combined logic/foundry sales increased slightly year-on-year and continued to account
for more than half of our equipment revenue. Advanced logic/foundry spending was driven by momentum in GAA – in
the first half of the year still mostly related to customer pilot lines, with the mix in the second half shifting towards
tool sales for the volume manufacturing ramp in 2025, as publicly announced by customers.
China revenue was at a record-high in the first half of the year, supported by strong investments in the mature logic/
foundry segment. China sales in the second half were lower than in the first half, as mature logic/foundry
investments normalized, following exceptional levels in the first half.
In 2024, memory revenue rebounded strongly compared to 2023, mainly driven by investments in the DRAM
segment, especially high-bandwidth memory DRAM for AI-related applications. NAND revenue was the smaller part
of memory revenue, despite its robust growth versus the very low level in 2023. As a percentage of total equipment
sales, the memory segment was 25% in 2024, up from 11% in 2023.
Revenue in power/analog/wafer decreased double digits compared to 2023, due to sluggish end-market demand,
including in the automotive and industrial segments. Silicon carbide revenue increased by a mid single-digit
percentage year-on-year thanks to the contribution of newly acquired customers and despite the slowdown in the
end market.
In 2024, ALD continued to be our largest product line, accounting for clearly more than half of our equipment sales.
ALD sales increased by a significant double-digit percentage year‑over-year, with positive momentum in both the
logic/foundry and memory markets. Silicon epitaxy, our second-largest product line, was slightly down year-on-year,
with higher GAA-related sales offset by decreases in the power and wafer segments. Following a record high year in
2023, vertical furnaces sales dropped double digits in 2024, mostly explained by the downturn in the power/analog/
wafer market.
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Financial statements
Appendix
ASM Annual Report 2024
32
Spares & Services revenue increased by 28% (14% in 2023), and by 29% at constant currencies, thanks to continued
growth in our outcome-based services, and also higher sales from the Chinese market, particularly in the second half
of the year.
Our 10 largest customers accounted for around 69.7% of revenue in 2024 (2023: 64.9%). The five largest customers
accounted for around 50.8% of revenue in 2024 (2023: 48.7%). In 2024, we had three customers (2023: two
customers) who contributed more than 10% of total revenue.
The table below shows our revenue breakdown by geography:
Year ended December 31,
(€ million)
2023
2024
United States
555.1
21.1 %
628.5
21.4 %
Europe
302.7
11.5 %
169.2
5.8 %
Asia
1,776.5
67.4 %
2,135.0
72.8 %
Total
2,634.3
100.0 %
2,932.7
100.0 %
Revenue from Asia and the US increased 20% and 13% respectively, while revenue from Europe decreased 44%. The
revenue increases in Asia and the US reflected higher demand in the logic/foundry and memory sectors, while the
drop in Europe was mostly explained by the slowdown in the power/analog/wafer market.
Gross margin
Total gross profit developed as follows:
Year ended December 31,
Increase
(decrease)
percentage
(€ million)
2023
2024
2023
2024
Gross profit
1,271.7
1,481.4
48.3 %
50.5 %
2.2
Adjusted gross profit
1,298.6
1,481.4
49.3 %
50.5 %
1.2
Gross margin increased from 48.3% to 50.5% in 2024. The higher gross margin was explained by mix, including a
continuing strong contribution from the Chinese market. Within the year, gross margin decreased from 51.3% in the
first half to 49.9% in the second half. This mainly reflected the impact from lower China sales in the second half. Our
mid-term target for adjusted gross margin is a range of 46% to 50%.
Selling, general and administrative (SG&A) expenses
Year ended December 31,
(€ million)
2023
2024
% Change
Selling, general and administrative expenses
308.7
316.8
3 %
Adjusted selling, general and administrative expenses
303.9
311.9
3 %
SG&A expenses increased 3% year-on-year. As a percentage of revenue, SG&A expenses were 10.8% (2023: 11.7%).
The strong increase in SG&A in previous years was the result of increased investments to strengthen the
organization. With most of these investments completed in 2023, SG&A grew at a moderate pace in 2024. Total
headcount was approximately flat compared to the level at the end of 2023, following growth of 7% in 2023 and 29%
in 2022.
Adjusted for PPA amortization, SG&A expenses increased by 3%. As a percentage of revenue, adjusted SG&A
expenses in 2024 were 10.6%, down from 11.5% in 2023. Our mid-term target for SG&A is high-single digits as a
percentage of revenue.
Research and development (R&D) expenses
Gross R&D increased by 15%, mainly due to higher R&D headcount – up 6% in 2024 – and higher level of R&D
activities given the growing pipeline of new opportunities. Net R&D increased by 20%. The higher increase in net R&D
compared to gross R&D, is for a large part explained by amortization costs, which increased by 50% in 2024. As
several product development projects entered the commercial release phase, including new applications for the 2nm
GAA technology node, amortization of the related capitalized development expenses started in the course of 2024.
As a percentage of revenue, net R&D expenses were 12.6% (2023: 11.7%).
Year ended December 31,
(€ million)
2023
2024
% Change
Gross research and development expenses
410.2
469.8
15 %
Adjusted gross research and development expenses
396.2
455.8
15 %
Capitalization of development expenses
(147.2)
(166.3)
13 %
Amortization of capitalized development expenses
43.8
65.9
50 %
Impairment of capitalized development expenses
2.5
0.4
n/a
Net research and development expenses
309.3
369.8
20 %
Adjusted net research and development expenses
295.3
355.8
21 %
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
33
Adjusted for PPA amortization, net R&D expenses increased by 21%. As a percentage of revenue, adjusted net R&D
was 12.1%, up from 11.2% in 2023. Our mid‑term target for adjusted net R&D as a percentage of revenue is in the
high-single digits to low‑double digits.
Operating result
Year ended December 31,
Operating margin
Increase
(decrease)
percentage
points
(€ million)
2023
2024
2023
2024
Operating result
653.7
802.1
24.8 %
27.4 %
2.6
Adjusted operating result
699.5
821.0
26.6 %
28.0 %
1.4
Operating result increased 23% year-on-year. Operating profit increased on the back of higher gross profit, and strict
cost control in SG&A, partially offset by increased investments in R&D. Adjusted for PPA amortization, operating
result increased 17% year-over-year.
Operating margin increased to 27.4% in 2024, up from 24.8% in 2023. Adjusted for PPA amortization, operating
margin was 28.0%, up from 26.6% in 2023. Our mid-term target for adjusted operating margin is a range of 26% to
31%.
Financing income and expense
Financing income is mostly driven by interest on our cash and cash equivalents, partially offset by financing
expenses related to translation results and the change in fair value of the contingent consideration ('LPE earn-out')
of €9 million in 2024 (2023: €10 million). The 2024 translation result included a translation gain of €45 million,
compared to a translation loss of €21 million in 2023. The translation results are mainly related to movements in the
US dollar in the respective periods. A substantial part of our cash position is denominated in US dollars.
Share in income of investments in associates
The share in income of investments in associates, which reflects our shareholding in ASMPT, decreased to €10
million from €21 million in 2023. This result excludes the amortization of intangible assets related to ASMPT, and the
reversal of the impairment of investments in associates in 2023. At the end of 2024, our stake in ASMPT amounted
to 24.73% (2023: 24.85%). Cash dividends received from ASMPT during 2023 and 2024 were €31 million and €14
million, respectively. For further information on ASMPT, please visit www.asmpacific.com.
Income tax
The income tax expense of €182 million (2023: €114 million), adjusted for the realization of temporary differences
relating to purchase price allocation, amounted to €187 million (2023: €127 million).
The effective tax rate excluding net income of our investment in ASMPT in 2024 was 21.2% (2023: 18.1%). For further
information on tax, see note 23 to the consolidated financial statements. The higher effective tax rate for 2024 is
primarily due to the impact of the Global Minimum Tax in 2024.
Net earnings
Net earnings decreased to €686 million in 2024 from €752 million in 2023. Excluding net income of our investment in
ASMPT, as well as PPA amortization, adjusted net earnings amounted to €708 million (2023: €583 million, also
excluding reversal of the impairment of investments in associates that year).
Cash flow
The following table shows the condensed cash-flow statement:
(€ million)
2023
2024
Net earnings from operations
752.1
685.7
Operating cash flows before changes in working capital 1
691.6
919.2
Net cash from operating activities
735.9
897.7
Net cash used in investing activities
(289.0)
(350.0)
Free cash flow 1
446.8
547.7
Net cash used in financing activities
(236.1)
(301.0)
Foreign currency translation effect on cash and cash equivalents
7.2
42.6
Net increase (decrease) in cash and cash equivalents
217.9
289.2
1 Free cash flow is a non-IFRS performance measure. It is calculated as cash flows from operating activities after investing activities. Please
see chapter 34.
We generated cash from operating activities of €898 million (2023: €736 million). We used €350 million cash in
investing activities (2023: €289 million) and used €301 million in financing activities (2023: €236 million), consisting
of dividend and share buybacks. Free cash flow increased to €548 million (€447 million in 2023), despite the
increase in working capital and capital expenditures.
Capex increased from €154 million in 2023 to €168 million in 2024. Our capex guidance for the period 2024-2027 is
€100-180 million annually. Key capex projects in 2024 included the progress on our expansion plan of our R&D and
manufacturing center in Korea; the start of our expansion plan of our new R&D center in Arizona; and the
investments in additional lab equipment.
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Financial statements
Appendix
ASM Annual Report 2024
34
Working capital
Working capital increased from €425 million to €447 million. This was mainly driven by an increase in the accounts
receivable position from €488 million to €789 million, reflecting the timing of tool shipments and related payments,
partly offset by higher contract liabilities and accounts payable. Inventories increased slightly from €526 million to
€567 million.
The number of outstanding days of working capital, measured against quarterly revenue, decreased from 60 days as
at December 31, 2023, to 50 days as at December 31, 2024.
The working capital developed as follows:
(€ million)
December 31, 2023
December 31, 2024
Inventories
525.7
567.0
Accounts receivable
487.7
789.0
Contract assets
59.4
57.7
Other current assets
68.8
70.3
Accounts payable
(177.7)
(282.6)
Provision for warranty
(22.7)
(33.4)
Contract liabilities
(300.2)
(485.7)
Accrued expenses and other payables
(216.2)
(235.3)
Working capital
424.8
447.0
Liquidity
(€ million)
December 31, 2023
December 31, 2024
Cash
637.3
926.5
We were debt-free as of December 31, 2024 (and 2023). Our principal sources of liquidity consisted of €926 million
in cash and cash equivalents, and €150 million in undrawn bank lines. The company has had a revolving credit facility
(RCF) in place since the end of May 2022. The facility’s option to extend the tenor by two years has been exercised
and will now mature end May 2029The facility amount is €150 million and it has an accordion option to increase the
facility by an amount of €100 million. The facility includes a financial covenant on the consolidated total net debt/
total shareholders’ equity ratio. This financial covenant is measured twice a year, on June 30 and December 31. We
were compliant with this financial covenant on both measurement periods.
In 2023, ASM converted its revolving credit facility into a sustainability-linked RCF aligned with the Sustainability-
Linked Loan Principles by the Loan Market Association. Under the terms of the facility, the interest rate is linked to
the achievement of long-term sustainability goals targeting gender diversity, net zero, and value-chain packaging
reuse, which are in line with ASM’s sustainability strategic focus. Achievement of these targets will impact the
interest rate as the lenders will apply a discount on the existing margin or add a penalty to the existing margin,
depending on the sustainability achievement against the target. The original terms and conditions of the RCF remain
in place.
For the most part, our cash and cash equivalents are not guaranteed by any governmental agency. We place our
cash and cash equivalents with high-quality financial institutions to limit our credit-risk exposure.
Our liquidity is affected by many factors. Some of these relate to our ongoing operations, such as the need to invest
in R&D projects and expansion. Others are related to the semiconductor and semiconductor-equipment industries –
for example, supply-chain constraints and the phase of the industry cycle – and the economies of the countries
where we operate. Although our cash requirements fluctuate, based on the timing and extent of these factors, we
believe that cash generated by operations – together with the liquidity provided by our existing cash resources and
our financing arrangements – will be sufficient to fund working capital, capital expenditures, and other ongoing
business requirements for at least the next 12 months.
For more on our on our funding, treasury policies, and long-term debt, see notes 11, 17, and 18 to the consolidated
financial statements.
Financial risk factors
We are exposed to market risks (including foreign exchange-rate risk), credit risk, liquidity risk, and capital risk. We
may use forward exchange contracts to hedge foreign-exchange risk. We do not enter into financial instrument
transactions for trading or speculative purposes. For more on financial risk factors, see note 18 to the consolidated
financial statements.
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Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
35
Reconciliation between IFRS and non-IFRS performance measures
Year ended December 31, 2023
Year ended December 31, 2024
(€ million)
Reported
delta
Adjusted
Reported
delta
Adjusted
Revenue
2,634.3
-
2,634.3
2,932.7
-
2,932.7
Cost of sales 1
(1,362.6)
27.0
(1,335.6)
(1,451.4)
-
(1,451.4)
Gross profit 1
1,271.7
27.0
1,298.7
1,481.4
-
1,481.4
Other income
0.1
-
0.1
7.4
-
7.4
Operating expenses:
Selling, general and administrative 1
(308.7)
4.8
(303.9)
(316.8)
4.9
(311.9)
Research and development 1
(309.3)
14.0
(295.3)
(369.8)
14.0
(355.8)
Total operating expenses 1
(618.0)
18.8
(599.2)
(686.6)
18.9
(667.7)
Result from operations 1
653.7
45.8
699.5
802.1
18.9
821.0
Finance income (expense) 2
1.2
9.7
10.9
11.1
8.7
19.8
Foreign currency exchange gain (loss)
(21.4)
-
(21.4)
45.0
-
45.0
Net finance income (costs) 2
(20.1)
9.7
(10.4)
56.1
8.7
64.8
Share in income of investments in associates 1
17.5
3.7
21.2
9.6
0.3
9.9
Reversal of impairment of investments in associates, net 3
215.4
(215.4)
-
-
-
-
Result before income taxes 1,2,3
866.5
(156.2)
710.3
867.9
27.9
895.8
Income taxes 4
(114.4)
(12.7)
(127.1)
(182.2)
(5.2)
(187.4)
Net earnings from operations 1,2,3,4
752.1
(168.9)
583.2
685.7
22.7
708.4
Introduction
Strategy and performance
Sustainability statements
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ASM Annual Report 2024
36
1 Adjusted for the amortization of fair value adjustments from purchase price allocations.
2 Adjusted for the change in fair value of the contingent consideration ('LPE earn-out').
3 Adjusted for the impairment reversal.
4 Adjusted for the realization of temporary differences resulting from purchase price allocation.
10.2 Capital allocation policy
At our Investor Day 2023, we reiterated our capital
allocation policy:
• ASM's first priority remains investing in the growth of
our business, both organically – investing in capex
and R&D – and also scanning the market for potential
M&A opportunities. In 2024, we increased gross R&D
spending by 15%, reflecting our strong pipeline of
opportunities such as in next-generation GAA
technologies. We spent €168 million on capex.
• Second, it is key for us to maintain a strong balance
sheet. At the Investor Day in September 2023, we
communicated our goal of maintaining a minimum
cash position of €600 million.
• Third, we are committed to paying a sustainable
dividend. With the publication of our Q4 2024 results
on February 25, 2025, we announced a proposed
dividend of €3.00 per share to be paid over 2024.
• Finally, our policy regarding excess cash is
unchanged: we continue to return excess cash to our
shareholders. On February 25, 2025, we also
announced a new €150 million share buyback
program. In 2024, we executed a buyback program of
€150 million, that was completed in July 2024.
10.3 Shareholders
At ASM, management and the investor relations team are
committed to maintaining the highest standards of
transparent and effective communication. We regularly
share information through multiple channels, including
press releases, the AGM, presentations, earnings calls,
in-person meetings and conferences.
In line with our policy regarding communications with
shareholders and the stakeholder dialogue policy, we
actively engage in a year-round dialogue with investors.
Discussions include a number of topics, including:
• Industry trends, including the outlook for WFE
spending, megatrends such as AI, and the
implications of export controls.
• Technology roadmaps, such as the increasing
requirements of ALD and Epi in the transition to gate-
all-around, and in next-generation memory.
• Financial performance, including quarterly and annual
results, and progress against our mid-term guidance.
• Capital-allocation priorities.
• Progress on the execution of our sustainability
agenda, such as the launch of our Climate Transition
Plan in 2024, and Diversity, Equity & Inclusion targets.
Sell-side research
Throughout the year, we saw a further increase in sell-
side research coverage. As of year-end 2024, ASM
stock was covered by 27 analysts – both from brokers
and independent research firms – two of whom either
launched or reinitiated coverage in 2024.
Performance of ASM shares
ASM’s shares are listed on Euronext Amsterdam (symbol:
ASM). Our shares have been included in the AEX index of
Euronext Amsterdam since March 2020, in the MSCI
Global indexes since February 2021. ASM shares are also
part of the STOXX Europe 600 index.
ASM’s market cap at year-end 2024 was €27.4 billion,
based on the closing share price of €558.80 on Euronext
Amsterdam on December 31, 2024 (€469.95 on
December 30, 2023), and 49.1 million total outstanding
shares at year-end. The market cap at year-end 2023
was €23.1 billion. The graph below shows the
performance of ASM’s shares on Euronext. The total
share return in this graph is the performance of the
share, including dividends paid and capital returned over
the period.
ASM share price and total shareholder return
(indexed)
Total return
Share price perfomance
0
400
800
1200
1600
The table below shows key metrics related to ASM’s
share price on Euronext Amsterdam:
ASM share trading on Euronext Amsterdam
Closing share price
Euronext Amsterdam
2022
2023
2024
Year-end
235.65
469.95
558.80
High
390.80
491.60
740.20
Low
198.74
235.65
436.30
Market capitalization
year-end (€ million)
11,623.7 23,122.5 27,435.9
Average daily volume
(number of shares)
265,174
183,912
139,601
Turnover (€ million)
19,744
18,403
20,802
The highest closing share price during the year was
€740.20 on July 15, 2024, and the lowest was €436.30.
on January 4, 2024.
The table below shows key metrics related to ASM's per-
share data:
Key per share data (in
million, except per
share data)
2022
2023
2024
Basic EPS
7.97
15.26
13.95
Diluted EPS
7.93
15.18
13.89
Dividend per share1
2.50
2.75
3.00
Basic weighted
average number of
shares
48.8
49.3
49.2
Diluted weighted
average number of
shares
49.1
49.6
49.4
1 2024 dividend per share proposed
Shareholder return
Shareholder return is one of the key priorities of our
capital allocation policy. Over time, ASM has returned
significant amounts of cash in different forms to our
shareholders. In 2024, we returned around €135 million
in the form of dividends and €150 million through share
buybacks. Since 2019, we have returned approximately
€1.2 billion in cash to our shareholders.
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ASM Annual Report 2024
37
2018
2019
2020
2021
2022
2023
2024
Cumulative cash returned to market
in million
Return of capital
Dividends
Share buybacks
2015
2018
2021
2024
0
1000
2000
Dividends
ASM aims to pay a sustainable annual dividend. ASM has
been paying dividends since 2010. On February 25,
2025, we announced that we would propose to the
upcoming AGM a regular dividend of €3.00 per common
share over 2024 (2023: €2.75 per common share).
Dividend per share in € paid over
0.60 0.70 0.70 0.80 1.00
3.00
2.00
2.50 2.50 2.75 3.00
Extraordinary dividend
Regular dividend
2014
2016
2018
2020
2022
2024*
—
2.00
4.00
Share buyback
On February 27, 2024, ASM announced a new share
buyback program of up to €150 million. The program
started on May 15, 2024, and was completed on July 25,
2024. In total, we repurchased 228,389 shares at an
average price of €656.77. For more information on our
historical share-buyback programs, visit asm.com.
On February 25, 2025, ASM announced the authorization
of a new share buyback program of up to €150 million.
Shareholder base and major shareholders
ASM shares are held by an international and diversified
shareholder base. At the end of 2024, about 80% of our
shares were held by institutional investors, and the
remainder by broker, retail, and other investors.
Geographically, the shares held by institutional investors
were for 42% held in North America, 30% in Europe
(excluding the UK), and 23% in the UK.
According to Dutch law, shareholders should notify the
AFM when their shareholding equals or exceeds 3% and
certain higher thresholds including 5%, 10%, and 15% of
the issued capital, and when it subsequently falls below
those thresholds. As of December 31, 2024, five
investors – BlackRock, Tokyo Electron, WCM, Capital,
and Norges Bank – had a shareholding of more than 3%.
Institutional investors by geography
in %
30
42
23
5
Europe ex. UK
North America
United Kingdom
Rest of the world
Investors by profile
in % *excluding treasury shares
80
20
Institutional investors
Broker, retail investors, and other
Number of
shares
Percent 1
Number of
voting
rights
Percent 1
ASM
International
N.V. (treasury
shares)2
230,731
0.5 %
–
– %
BlackRock, Inc 3
4,222,310
8.6 % 4,904,810
9.9 %
Tokyo Electron
Ltd. 4
2,699,000
5.5 % 2,699,000
5.5 %
WCM
Investment
Management,
LLC 5
2,394,569
4.9 % 2,394,569
4.9 %
Capital
Research and
Management
Company 6
–
– % 2,958,221
6.0 %
Norges Bank 7
2,397,015
4.9 % 2,397,015
4.9 %
1 Calculated on the basis of 49,328,548 issued common
shares as of December 31, 2024.
2 On December 31, 2024, ASM held 230,731 common
shares in treasury.
Based on the notifications filed with the AFM: 3 October
19, 2023; 4 July 1, 2013; 5 October 25, 2024; 6 March 19,
2024; 7 October 12, 2023
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38
*Proposed
11. Interview with our Chief People Officer
Edyta Jakubek
Chief People Officer
Edyta Jakubek reflects on her first full year as
Chief People Officer, highlighting ASM's
initiatives to enhance employees' capabilities
and foster growth. She also discusses how a
unified and inclusive culture contributes to
attracting and retaining talent.
Looking back on the past year, what would you
say are the main achievements in human
resources?
It's been a year of progress and positive change. We
advanced all four strategic people objectives – attracting
diverse talent in technology and innovation,
strengthening our leadership pipeline with robust
succession planning, expanding our agile organizational
model, and continuing to build a strong, creative, and
inclusive company culture.
What are you most proud of?
What stands out most is seeing the grassroots energy
across our organization. Our people are taking initiative
and self-organizing to make ASM a greater place to
work. It’s not just top-down directives anymore, but
genuine bottom-up engagement that’s driving positive
change.
I’m equally proud of how we’ve strengthened our People
function. In 2024, we significantly expanded our team,
bringing in strong new leaders and deep HR expertise.
We’ve also made important strides in digitalizing our HR
operations to better serve our people.
What are your priorities around talent
acquisition?
Talent truly drives our success, and we recognize it’s
becoming an even more critical focus. Our industry is
expected to require substantially more professionals in
the coming years, so we’re taking a strategic approach
to stay competitive. We’re particularly focused on
strengthening our employer brand to ensure potential
candidates understand the unique opportunities we
offer.
“Talent truly drives the success of our
company.”
How are you personally engaging with the next
generation of talent?
I’ve been having direct conversations with students and
graduates at leading universities globally, sharing our
story of innovation, rapid skill development, and
meaningful impact, all anchored in our values and
culture. The response has been encouraging. Students
strongly connect with our dual mission of driving
technological innovation while creating positive societal
impact. They see ASM as a place to build their careers
and shape future innovation.
We’re also expanding our university partnerships
strategically, including in countries that may not have an
established semiconductor industry but offer strong
STEM programs. These emerging markets represent a
valuable opportunity to attract talented people who can
grow with us and help drive our ambition forward.
Our talent strategy delivered strong results, with around
600 new colleagues joining us in 2024.
What’s your approach to retaining talent in
today’s competitive market?
Our investment in leadership, diversity, and talent-
development programs is paying off. We’re seeing
strong retention, with just 4% attrition among our high
performers. That's particularly noteworthy in the current
environment.
However, the fact that we’re successful today doesn’t
mean we’ll be successful in the future. Culture remains
fundamental to retaining and attracting great people.
Our employee survey results reinforce this, which is why
we’re continuing initiatives that strengthen our culture
across all locations and business units. It’s about making
sure everyone understands and connects with our
vision, values, and strategic direction. Looking ahead,
we’ll continue to raise the bar. As we grow, we’re
creating more opportunities for our people to develop
new capabilities and advance their careers. ASM's high-
performing growth culture is what brings us together,
and it’s what will help us maintain this momentum.
How are you fostering an inclusive culture, and
what are your thoughts on progress in gender
diversity?
Our strategy for fostering inclusivity begins with
raising awareness across our workforce. In 2024, we
implemented several key initiatives, including targeted
webinars, where we explored inclusive behaviors and
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unconscious bias with more than 2,000 employees.
What I find particularly encouraging is the organic
growth of our employee resource groups. The Women’s
Initiative Network (WIN) builds leadership capabilities
and connects women across the organization through
peer networks, while Shades, launched by our US-based
colleagues, promotes ethnic and cultural diversity. We’ve
also seen meaningful engagement from our
neurodiversity and LGBTQ+-focused groups.
“At ASM, we are building careers and
shaping future innovation.”
Regarding gender diversity in leadership, while the
percentage of women leadership appointments has
remained steady at around 17%, we’ve been building a
robust and growing pipeline of talented women ready to
take on leadership roles. This talent pool gives me
confidence in our ability to become an even more
diverse company.
What’s most important to emphasize is that at ASM we’re
committed to embracing differences across all
dimensions and creating an innovative and diverse
workplace where everyone can thrive.
How are you inspiring and empowering
employees to drive strategic business growth?
Our approach focuses on two key pillars. First, we’re
making significant investments in developing our
people’s capabilities. In 2024, we intensified these
efforts, particularly through our ongoing ‘Lead Ahead’
program, which is designed to elevate the leadership
skills of our people managers across all levels. We’re also
expanding our professional development framework,
with a particular focus on enhancing our technical career
ladder for engineers. This structured approach to career
development will ensure our technical talent can grow
and advance within the organization.
The second pillar involves balancing organizational
growth with our signature agility. Through our
organization design center of expertise, we’re optimizing
business-unit structures and conducting quarterly
reviews to keep our organizational design sharp and
aligned with our strategy.
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Community engagement
“Through ASM’s community engagement
initiatives, we aim to make a meaningful
impact, build stronger connections, and
contribute to a healthier planet.”
Seraphina Seng
Head of Government and Community Relations
In 2024, ASM continued its commitment to fostering
meaningful connections and creating a positive impact in
the communities where we operate. Guided by our core
value of ‘We Care’, we focused our efforts on three
pillars: promoting STEM education, uplifting underserved
communities, and accelerating environmental
sustainability. These initiatives not only reinforce our
corporate responsibility goals but also highlight the
collaborative efforts of our employees and partners
across the globe.
Arizona: planting trees
Our Arizona team collaborated with the Arizona
Sustainability Alliance (AZSA) as part of our multi-year
urban forestry partnership. In 2024, ASM supported four
tree-planting events at Cordova Elementary School,
Festival Fields Park, an
d Orangewood Park, planting a total of 87 native and
drought-tolerant trees.
These efforts will contribute to improving local air
quality, reducing stormwater runoff, and enhancing
community Tree Equity scores, particularly in
underserved areas. Each event brought together
volunteers from ASM, local schools, and community
organizations, fostering a sense of unity and purpose.
ASM’s collaboration with AZSA, backed by a €76,000
annual investment, underscores our dedication to
sustainability and social impact.
Ireland: farm initiative
We rolled up our sleeves and volunteered at a local
organic community farm in 2024. Colleagues from
Ireland donned their brand-new ASM T-shirts before
working hard to help prepare the ground for spring
planting. The farm grows organic vegetables, distributing
them to families in need in the area. The work was
challenging yet fulfilling, a small way we could contribute
to the local community and the well-being of our planet.
Singapore: partnership with North West
Community
In Singapore, ASM led a series of impactful initiatives
aimed at addressing social and environmental needs.
One key effort was a large-scale food distribution
program in partnership with the North West Community
Development Council. This program provided essential
supplies to 500 individuals from rental-unit households.
Our pop-up market provided a variety of nourishing food
items to those facing economic hardships. Together,
we’re nurturing a culture of compassion while also
making strides in reducing waste through innovating new
community outreach models.
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Japan: nurturing creativity and community
ASM Japan partnered with Habitat for Humanity for a
community cleanup around the Bott Memorial Home in
Machida City. Around 18 ASMers and 11 student
volunteers spent a day improving the orphanage’s
outdoor environment by clearing debris and cleaning
gutters to revitalize the space. This collaborative effort
addressed long-standing maintenance challenges faced
by the orphanage, especially during seasonal leaf falls,
and enhanced the overall quality of the children’s living
environment. ASMers also contributed to the
establishment of a craft room at the facility. This
dedicated space will provide children with opportunities
to explore creativity, develop essential skills, and engage
in enriching activities
Arizona’s Verde river: protecting water
resources
ASM has embarked on a multi-year, US$300,000
partnership with The Nature Conservancy, TNC, to help
them fund critical conservation projects in Arizona. A key
project is the Restoring Flows program, which allows
local farms to modernize their irrigation systems to
restore the watershed and flows to Arizona’s Verde
River. Currently, TNC is working with Hauser Farms,
located near Sedona, to improve their systems and save
nearly 140 million gallons of water per year for the Verde
River. This project strengthens the long-term resilience
of the Verde River, which is one of the last free-flowing
river systems in Arizona and serves as a critical water
supply for the Phoenix Metro area.
Taiwan Science Train
The Taiwan Science Train program was another
highlight, engaging more than 1,000 children with hands-
on science experiments designed to spark curiosity and
interest in STEM fields. By simplifying complex
semiconductor processes into interactive activities, the
program encouraged young participants to imagine
futures in science and technology. This outreach aligns
with ASM’s goal of nurturing the next generation of
innovators and fostering a deeper understanding of
STEM among young learners.
The Netherlands: Roparun
ASM supported palliative cancer care as the main
sponsor of Team 201 in the Roparun, a 500-kilometer
relay run from Rotterdam to Paris. Our sponsorship
helped cover the team’s operational expenses, enabling
them to raise substantial funds for palliative care
services. Participants highlighted the sense of solidarity
and fulfillment they experienced during the event, which
brought together individuals united by a shared purpose.
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12. Leading-edge innovation
Thanks to our decentralized R&D network, we are
well suited to expand customer collaborations
globally. In 2024, we increased gross R&D by
15%, as we continued to execute on our
roadmaps and opportunities in the next-
technology nodes. Our R&D employees represent
25% of our total headcount.
12.1 ASM R&D strategy and model
ASM has a globally distributed R&D and engineering
organization. Our corporate R&D resources are primarily
located in Helsinki, Finland, and Leuven, Belgium. Our
product-development sites are located in the
Netherlands (Almere), US (Phoenix), Japan (Tama),
Korea (Hwaseong), and Italy.
The corporate R&D group drives advanced process and
materials development, as well as process integration
learning for future-generation semiconductors that are
four to eight years away from initial production at our
customers' sites.
Our Helsinki team focuses on precursor chemistry
development for new ALD materials, while our Leuven
team concentrates on material application and device
characterization through integration and testing.
Each product-development site specializes in specific
products and technologies, contributing to our
innovative capabilities. We have integrated IP managers
across all locations to ensure proactive identification and
protection of our innovative IP, which is crucial to our
technical leadership.
12.2 Corporate research
In 2024, we continued with increased investments and
further grew our R&D employees to accommodate the
growing pipeline of new opportunities. The capital
investments included demo, R&D, and metrology tools
across all our global R&D locations.
Our long-term strategic partnership with the
Interuniversity Microelectronics Center (imec) in Leuven,
Belgium, the world-leading R&D institute in our industry,
continued in 2024. The partnership, which extends
through 2025, was renewed for the fourth time in 2022.
The imec collaboration gives us the opportunity to
investigate, both jointly and independently, the
integration of individual process steps and new materials
in electrically active devices. We have partnered with
imec since 1990, with significant on-site representation
since 1994.
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Our R&D facilities
Corporate R&D
Belgium
Leuven
Finland
Helsinki
Product R&D
Japan
Tokyo
Italy
Milan &
Catania
The
Netherlands
Almere
Korea
Hwaseong
Current
US facility
Phoenix
Future
US facility
Scottsdale
(under
construction)
ASM continued its involvement in the Semiconductor
Research Corporation (SRC) program on
Nanomanufacturing Processes that first started in 2022.
Through this membership, ASM gains access to and
actively participates in forward-looking pre-competitive
semiconductor research at leading universities around
the world. We also gain direct access to graduate
students, as new hires, who are highly qualified in ALD
and other relevant areas of expertise.
Through our network, we collaborate with universities in
several countries on a bilateral basis, including, among
others, academic institutions in the Netherlands,
Belgium, Finland, the United States, Canada, Japan, and
South Korea. In 2024, we significantly expanded our
collaboration with the Eindhoven University of
Technology (TU/e) by signing a new four-year research
collaboration agreement.
We contribute to several process and equipment-
development projects at the major Dutch technical
universities through the Dutch NWO5 funding
organization in the domain TTW 6 (covering applied and
engineering sciences). In Belgium, we take part in the
industrial users group for several projects supported by
the Flemish funding organization VLAIO 7.
We occasionally cooperate with other semiconductor
capital equipment suppliers in complementary fields. Our
aim is to learn more about how our own deposition
processes perform, in cooperation with other processes,
either in bilateral or consortia projects. We continuously
engage in formal joint-development programs (JDPs)
with customers for 300mm applications of our products.
We also actively evaluate our most advanced
technologies with selected customers. The scope of
these JDPs span many nodes – from the current node in
production to N+2 and beyond nodes in logic, foundry,
DRAM and 3D‑NAND technologies. For the logic/foundry
technologies, there is a significant increase in our
engagements related to GAA devices as they enter high-
volume manufacturing.
12.3 Product development
Our global product-development sites are centers of
excellence for a subset of products and technology. The
Phoenix location focuses on products for thermal ALD
and Epi; Almere, the Netherlands, for vertical furnaces;
Hwaseong, Korea, for PEALD, and Tama, Japan, for
PECVD and PEALD, in collaboration with Hwaseong. Our
R&D and product-development facilities in Italy focus on
SiC Epi (Milan and Catania).
Our key product units work with customers on the
products and technology currently in volume
manufacturing or to be used in manufacturing in less
than six years' time. The global platform engineering
group addresses the need for common platforms and
software for the various products in our product
portfolio, and across different key-product units. This
helps us drive the standardization of hardware and
software throughout the organization.
We continuously drive innovation of our products and
services to address the technology needs of our
customers, and the industry’s focus on reducing costs
and improving its environmental footprint. Our
development programs aim to increase throughput,
equipment reliability, and yield in our customers’
manufacturing line, as well as lower the energy and
resource intensity, and cost of ownership. Our
customers benefit through reduced operating costs, as
many of our products use the same parts and
consumables, while a common control architecture
improves ease of use.
To support our strong increases in the ALD and Epi
growth markets, we are investing in a new cutting-edge
R&D center in Scottsdale, Arizona. This facility,
announced in 2023, is making progress and will greatly
expand our R&D capabilities when completed. Also, the
construction of the next phase of our manufacturing and
innovation center in Hwaseong, Korea, is progressing
and will further expand our R&D footprint there when
completed in 2025.
Improving cost of ownership and technical
performance
Innovation in products and platform technology is one of
ASM's most important strengths, bringing continued
improvements in technical performance and cost of
ownership. In the following section, we highlight a few
examples of the many innovations we introduced in our
ALD and Epi products.
ALD
We have optimized our ALD products and introduced
specific innovations for different applications. For
example, for metal oxides, we have developed a new
reactor with the flexibility to deposit five, six, or even
seven elements. This is important because new materials
are driving Moore's Law. This ability to mix and match
different precursors allows us to develop new materials
that are unknown to humanity right now. This has been
an important factor in developing new ALD applications,
such as for use in GAA and in selective ALD.
For all metal ALD applications, we have further
developed and optimized a surface clean (SC)
technology. This technology has been integrated on the
same platform with the metal ALD reactors, so as not to
break vacuum. SC reactors remove any impurities or
moisture from the wafer surface prior to metal ALD
deposition.
In memory devices, ALD has seen an increase in use for
gap-fill applications. We are able to gap-fill high aspect
ratio (>100:1) structures with our innovative TENZA ALD
technology. Our ALD technology has been selected for
use in several applications in 3D-NAND.
Most of the ALD films are deposited on the XP8 platform
in a dual-chamber module (DCM) or quad-chamber
module (QCM) architecture, to improve productivity and
reduce the cost of ownership.
We expanded our ALD product portfolio in 2024, with an
additional range of new applications. However, we kept
the key advantages of our core reactor design
consistent, such as a small reactor volume. This allows
for very fast cycling times and an ALD reactor design
that provides excellent uniformity and homogeneity. We
are able to purge the precursor very quickly, which is
important for gap-fill applications where it is challenging
to purge out the precursor from the deep structures.
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5 De Nederlandse Organisatie voor Wetenschappelijk Onderzoek ('Dutch Organization for Scientific Research')
6 Domein Toegepaste en Technische Wetenschappen ('Domain for Technical and Applied Sciences')
7 Vlaams Agentschap Innoveren & Ondernemen ('Flemish Agency for Innovation and Entrepreneurship')
ASM’s R&D strengths
• A legacy of innovation in materials
research
ASM’s leadership in materials and precursors stems from
the acquisition in 1999 of Microchemistry Oy,
spearheaded by our visionary founder Arthur del Prado.
Home to ASM’s early-stage R&D efforts, our R&D lab in
Helsinki, Finland, focuses on early-stage R&D for
developing new materials and precursor chemistries.
Here, ASM also formed and funded the ALD Center of
Excellence with the University of Helsinki. This
partnership advances novel research methods
for developing and adapting the study of mechanistic
details of atomic layer processes.
Rudi Cartuyvels (imec COO) and Hichem M’Saad (ASM CEO)
• Deep precursor chemistry, materials,
and plasma expertise
Our geographically diverse R&D teams possess deep
expertise in precursor chemistry, complemented by
long-term strategic R&D partnerships. In Belgium, ASM is
located on the premises of the prominent and
independent semiconductor research institute imec, in
Leuven. Our 32-year-long collaboration with the institute
enables us to investigate, both jointly and independently,
the integration of individual process steps and new
materials in semiconductor devices in imec’s state-of-
the-art pilot line.
Increase in the number of ALD layers
2003
3-4 layers
2013
20+ layers
2024
80+ layers
• The largest ALD product portfolio and
a growing offering in Si Epi
ASM’s atomic layer deposition (ALD) product portfolio
expanded from just three to four layers in 2003 (e.g.
Al2O3 , ZrO2) to over 80 layers in 2024, reflecting
significant advancements in deposition technology. One
of the key breakthroughs took place in 2007, when
ASM’s Pulsar ALD tool became the first system used in
high-volume manufacturing of devices featuring a novel
hafnium-based high-k gate dielectric at the 45nm node.
In 2011, with the transition to 22nm, ASM played an
important role in supporting the industry move from
planar to FinFET transistors. Today, our large portfolio
positions us as a key partner for the leading logic/
foundry players in the transition to the GAA transistor
architecture, with several applications in ALD and Si Epi.
ASM has the strongest patent portfolio in ALD
• A strong and impactful IP portfolio
According to the recently updated study from
LexisNexis® PatentSight® 'Atomic Layer Deposition Thin
Layers Are a Big Thing' 8, ASM holds a strong and
impactful patent portfolio on its core strength of ALD as
measured by both Competitive Impact and Patent Asset
Index 5.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
45
8 https://www.lexisnexisip.com/resources/atomic-layer-deposition-thin-layers-are-a-big-thing/
“Each materials challenge we overcome
and every process technology
breakthrough we achieve showcases our
disruptive spirit.”
Vamsi Paruchuri
VP Technical Marketing
5 www.lexisnexisip.com/resources/patent-asset-index
Si Epi
The reaction chamber design of our Epi tools includes
several key innovations, important to providing optimal
value to our customers as they transition to next-
generation device structures. One important example of
an innovation we introduced in 2023 is Turino-CL, which
enables unmatched with-in-wafer and wafer-to-wafer
uniformity. This is the industry's first closed-loop direct-
wafer temperature measurement and control system.
Refer to Epi tech explainer in chapter 4 for more
information. The ability to actually measure and control
the wafer temperature makes for accurate matching.
This allows thickness control one monolayer at a time,
bringing important advantages such as in GAA
nanosheet applications. Most new process applications
are customer specific, and are typically outcomes from
our collaborative joint-development programs.
Innovation in Spares & Services
The technology-development team in Spares & Services
has grown significantly in recent years. Innovations are
multiplying worldwide, many more are being developed,
and patents are being filed. The focus of these
innovations is on the parts making up our systems. We
are developing these based on the key issues customers
encounter as they use our systems in different ways and
over long periods. We focus on how we innovate to
overcome these issues, and on making the system
perform better on wafer (lower defects, better
uniformity, etc.), and more consistently over longer
periods of uninterrupted use at lower costs. Primary
focuses are on evolving the internal chamber part
surfaces to make them more robust for our evolving
uses, enabling the refurbishment and reuse of parts
rather than replacing them, and making parts last longer.
This results in lower costs and more product outs for our
customers.
For services support, we make sure lessons do not need
to be learned twice. We do this through a 'knowledge
net' that captures, stores, and retrieves the information
that allows our support to be as efficient as possible and
for us to resolve issues faster. As part of our knowledge
net, we are developing AI / machine learning-based data
capture and learning so we may understand how to
make our tools operate most effectively to levels that
were previously unobtainable.
The result of these efforts are outcomes for our
customers that deliver lower costs, higher device yields,
and more output per system footprint in their fabs.
Our complete kit management (CKM) is one example of
our new outcome-based service products developed in
recent years – a service that aims to make the
maintenance process faster, more efficient, and cost
effective, through, among others, smart planning and
proactive maintenance. With CKM, we can combine the
repair, replacement, and preventive maintenance of
several different parts, resulting in a significant reduction
in the time it takes for a system to be taken down for
maintenance until it is back up and running. It also means
more time between maintenance. CKM also puts
significant focus on reducing the carbon footprint of our
maintenance through repairing, refurbishing, and
cleaning used parts for reuse, rather than replacing with
new parts. In 2024, we booked new multi-year contracts
again.
At ASM, we recognize the benefits of a circular economy
and the importance of eco-design for addressing
systemic issues like climate change, biodiversity loss,
and pollution. Our innovation in Spares & Services strives
to contribute to this need, working toward ensuring the
materials throughout our machines are used in an
optimal way.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
46
Launching our PE2O8 SiC Epi tool
As the trend towards general electrification continues,
more power device manufacturers are utilizing silicon
carbide (SiC) for high-power applications, including
electric vehicles, green power, and advanced data
centers. This increased demand, coupled with the need
for lower costs, is driving a transition from 6” to 8” SiC
substrates. Future advancements in SiC products and
their yields will benefit from pristine and cost-effective
SiC epitaxy (Epi) as part of the process.
The PE208 Sic Epi system is a dual-chamber, single-
wafer platform designed to meet the needs of the
advanced SiC power device segment. This system is
engineered to provide low defectivity and high process
uniformity, all while maintaining a low cost of ownership.
These features are essential for driving down costs and
enabling broader adoption of SiC devices.
The PE208 system utilizes a unique single wafer
chamber that deposits SiC with ultra-precise control of
gases and temperature, enabling higher yield. Its highly
compact dual-chamber design ensures high productivity
and low total costs of operation. Additionally, the system
features an easy preventive maintenance approach,
which helps to increase uptime.
System deliveries have already begun to multiple
customers globally, including leaders in SiC power-
device manufacturing.
“ASM has been the industry benchmark
for process uniformity with our novel
chamber design. We have now extended
our system capability to improve our
process control and our value for
customers with lower cost of ownership.”
Since 2022, ASM, through its new SiC Epi product unit,
has been developing and refining its single-wafer SiC
epitaxy system. Following very strong expansion in
2023, we booked a solid 10% increase in our SiC Epi
sales in 2024, despite softening conditions in this market
segment. This performance was supported by the
multiple new customer wins, in the US, Europe and Asia,
since the acquisition of LPE in 2022.
Introduction
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
47
PE2O8 Tool
Compact single-
wafer chambers
Inductive heating
system
Dual-chamber
design
Hot wall reactors
with cross flow
6” and 8” wafer
processing
Small footprint
“We are at a critical inflection for silicon
carbide power products, as our
customers transition from 6” to 8”
wafers.”
Steven Reiter
Corporate Vice President
Plasma and Epi
12.4 Intellectual property and patents
ASM’s intellectual property (IP) includes our patents,
trade secrets, trademarks, and copyrights. We
strategically develop our IP portfolio to:
• grow shareholder value;
• strengthen our competitive advantage in the
marketplace; and
• support our position to sell our products and services.
We fully understand that our IP is a critical asset we
must protect. Failure to do so can have negative
consequences, such as a loss of revenue and market
position, disruptions to our supply chain, and a reduction
of public trust. IP protection is also a key priority of our
stakeholders – as indicated in our sustainability
materiality analysis – and for this and other reasons,
establishes IP as a priority for ASM.
Patents and trade secrets
New deposition technologies and chemistries continue
to drive growth in our global patent portfolio. Patents
give us the right to protect and license our innovative
processes, products, and services. They also make it
possible for us to confidently share our innovations with
the market. We have developed ASM’s trade secrets
through decades of focused R&D. Our IP assets help us
design and make industry-leading equipment and
processes, and they strengthen our patent portfolio,
licensing, and sales processes.
We generally file patents in the principal countries where
semiconductor devices and related equipment are made
and/or sold. We review our portfolio to make sure it is as
effective as possible, while monitoring the increase in
maintenance and prosecution costs linked to a growing
portfolio. We strategically develop our IP portfolio via
strong interaction with ASM’s technical community to
ensure our strong position in the market, in addition to a
competitive advantage as a shareholder asset. Our ALD-
related patent portfolio was praised in a recent study,
validating our patent strength. Refer to 'ASM’s R&D
strengths' in chapter 12 for further information.
Growth in ASM patents in force
2,094
2,250
2,619
2,953
3,395
2020
2021
2022
2023
2024
1,000
1,500
2,000
2,500
3,000
3,500
Patents in force
ASM is dedicated to innovation, regularly applying for
and receiving patents, and holds a considerable number
of pending patent applications globally. As of December
31, 2024, we had 3,395 patents in force worldwide
protecting our products and services.
Breakdown ASM patent portfolio by lifetime (2024)
Remaining life of patents in force
# of patents
Within 5 years
525
6-10 years
755
11-15 years
1,682
16-20 years
425
Trademarks and copyrights
We have a number of trademarks covering our product
portfolio in the principal countries where we do business
(as of December 31, 2024):
ASM, the ASM International logo, AURORA, EAGLE,
EMERALD, EPSILON, INTREPID, LPE logo, MONERA,
Powering the Future logo, PREVIUM, PULSAR, SILCORE,
SONORA, SYNERGIS, XP, and XP8 are our registered
trademarks.
The ASM Qualified Licensed Supplier logo, AEGIS, A400,
A412, ES, ESA, EVC, GenMatch, Level-to-Level, Precis,
PE2O8, TENZA, and TURINO are our trademarks.
‘Ahead of what’s next’ is our service mark.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
48
12.5 Industry technology roadmap
At ASM, we believe that as long as there is growing
demand for semiconductors, Moore’s Law – or at least a
generalized version of it – will continue. Scaling of the
smallest dimension through lithography is no longer
enough to increase density and decrease cost-per-
function. Increasingly, scaling is complemented with a
move to the vertical dimension '3D'. A first example of
this was the transition from 2D-NAND to 3D-NAND non-
volatile memory with, currently, more than 200
transistors aligned vertically along a single vertical
channel.
A second example of 3D is the GAA transistor, poised to
take over in coming years, following five or more
generations of FinFET. This stacks up to four channels
on top of each other, significantly multiplying the current
a particular transistor can carry. Simultaneously, this
improves the control over that current. Third, chips are
now stacked vertically in a package to reduce the
package size and shorten the connection lengths
between the chips. For example, a high-bandwidth
DRAM device integrates a logic chip, formerly 'the
periphery' in a single chip, with multiple vertically
stacked memory arrays in a single package. And fourth,
the difficulties in scaling the cost and size of a DRAM is
expected to lead to a transition to stack transistors
vertically in a 3D-DRAM beyond 2026.
ALD
Due to its ability to create substantially uniform and
high-quality layers of complex materials over 3D
structures (‘conformality’) at relatively low temperature,
the share of ALD (including PEALD) in the deposition
market is expected to grow substantially with this trend
towards 3D. On the one hand, existing technologies like
LPCVD are being replaced by single-wafer ALD. On the
other hand, new ALD processes will enable further
changes in device architecture that will not be possible
with other deposition technologies. New materials, such
as better conductors and insulators, for example, will be
needed to maintain adequate electrical performance.
Materials need to be deposited in narrow, deep gaps,
without any holes or seams. More and more of these
critical process steps are expected to migrate towards
ALD and PEALD.
Si Epi
The GAA transistors will rely on an epitaxial superlattice
of as many as eight to 10 silicon and silicon-germanium
layers. For 3D-DRAM, this superlattice is expected to be
even taller – starting with around 64 layers. This is
expected to scale quickly to even more layers. The new
GAA transistors will also need new epitaxial contact
layers, selectively grown bottom up with high doping. In
addition, power electronics for, among others, electric
vehicles, will need thick epitaxial layers.
Overall, we believe ALD and Epi are the most important
growth markets, at least in the next five years.
Accordingly, we have focused most of our R&D spend on
these technologies.
SiC Epi
Another area of growing semiconductor demand is for
power devices, especially due to the increasing market
for electric vehicles and other power applications. Within
this growing market, the use of silicon carbide in power
devices is expanding rapidly.
SiC devices provide greater battery life and a longer
range for electric vehicles. Because of its wide band
gap, SiC is highly efficient at high voltages, offering
higher power efficiency, increased power density –
resulting in reduced component weight and size – and
faster battery-charging times. Our SiC tools use an
epitaxy process to deposit the SiC materials on either
bare substrates or as part of the transistor device
fabrication process. Most SiC epitaxy is currently done
on 150mm wafers, but is expected to move to 200mm in
coming years to reduce costs. The transition to 200mm
SiC is a major technological inflection point that positions
single-wafer reactors like ASM's particularly well, as
thickness and material uniformity control are more
challenging at 200mm.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
49
Industry technology roadmap for logic, DRAM and 3D-NAND (Flash)
Logic
DRAM
Flash
FinFET
First-gen HVM
2012 - now in 5th Gen
GAA
First-gen HVM
2024 - 2025
GAA CFET
HVM
2030+
6F^2 DRAM
Current
3D-DRAM
HVM:
2030+
2-tier
2xx layers
From 2022
3-tier
4xx layers
2025+
Source: EETimes, Japan
13. Operational excellence
ASM's global operations and supply chain
combine to give the company the infrastructure
to build world-class semiconductor tools.
13.1 Our outsourced manufacturing
model
We aim to further extend the scope of ASM's
manufacturing strategy of distributed manufacturing
model in support of our ability to scale. Our business
model with regional contract manufacturers will be
strengthened to foster stronger collaboration.
Supplier spend by geography
ASM manufacturing sites
Supplier spend
ò
Singapore
¢ Supplier spend by
geography as a % of
total (2024)
ò
Korea
ò
Italy
We see these contract manufacturers, who are our key
strategic partners, as 'ASM's extended factories'. We will
engage them in a bigger way, and support their
operations so that they are integral to realizing ASM's
vision of staying ahead of what's next.
13.2 Manufacturing operations
ASM has global manufacturing sites in Singapore, Korea,
and Italy. Korea and Italy are also two of our worldwide
research and development centers. Being close to the
R&D centers, all our manufacturing sites are adding value
as ideal sites for piloting new products, including
Singapore. This allows for faster time to market through
better collaboration between the design, new product
engineering, and manufacturing teams.
To support scalability of the business and the increasing
number of new product pilots in our global
manufacturing footprints, we will continue to focus on
increasing capacity through manufacturing process
innovation using advanced technology. This includes
lean line design for both high-volume products and
applying the same concept to new products, cycle time
reduction initiatives, and by enhancing facilities.
Globally, ASM continued to increase its utilization and
efficiency in 2024, and this will remain a key focus for
2025:
• In Korea, we are on track to expand our footprint in
2025, to support several of our new applications as
they progress into the high-volume manufacturing
phase.
• Singapore, our global operation hub, will continue to
produce ~80% of ASM's total volume with high
efficiency and a strong supply-chain base close to the
region.
We continue to invest in innovating our manufacturing
processes and are excited about the significant strides
we made in 'Build' and 'Test' methodologies in 2024.
Apart from investing in learning and providing our people
with overseas exposure, we will hire people with the
right skill sets to support the transformation towards a
truly state-of-the-art manufacturing entity.
Our manufacturing facilities follow the Responsible
Business Alliance (RBA) Code of Conduct. In 2024, we
successfully completed a Validated Audit Program (VAP)
audit from the RBA at our Singapore manufacturing site.
Improving product quality
Delighting our customers with overall product quality
that exceeds their requirements has always been a top
priority. We listen to customer feedback and strive to
support them with systemic improvements. We foster
strong collaboration with internal stakeholders – field
service engineering teams, design engineering, and
global product managers – to support start-up quality at
customer sites and enhance customers' experience as
ONE ASM TEAM. ASM did not have any product quality
recalls or related material financial impacts in the period
2020-2024.
Our focus also includes suppliers' quality improvement,
and we partner with them to drawn on each other's
expertise to exceed end-customers' expectations.
On new products, our suppliers partner with ASM cross-
functional teams on cost, manufacturability, and reliability as
early as the design phase. Being able to anticipate potential
issues and eliminate them has led to a reduction in the non-
conformance of new products.
In 2024, ASM had many success stories in our
manufacturing worldwide. These include:
• Innovation in traceability implementation in our
manufacturing and logistic processes;
• New product quality through engineering initiatives
and 'design for manufacturability' for ASM and
suppliers; and
• Collaborating with key suppliers to enhance testing
methodologies for better efficiency and quality.
Singapore FEMS manufacturing facility
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
50
US
EU
Asia
23%
9%
68%
With these experiences, we have outlined new initiatives
for 2025 to further lead our team on our continuous
improvement journey, including standardizing
manufacturing improvements and digitalization. We will
continue our focus on high-value engineering roles to
support innovation in manufacturing to stay ahead of
what's next.
Coupled with the increased capacity in our Singapore
facility and the planned expansion in Korea, we believe
we have the internal assembly capacity in place to reach
at least the high end of our revenue target for 2027.
13.3 Global supply chain
ASM’s fast pace of technology, time-to-market
pressures, and rapid growth, requires a supply chain that
is well aligned with ASM’s needs. In 2024, these
suppliers not only supported ASM’s growth, but also
provided valuable partnership and feedback in
supporting a record number of new products that quickly
went from concept to shipping to customers. We also
engaged key suppliers on several projects to add more
content and create ‘Merge-in-Transit’ (MIT) modules that
will be able to be shipped directly to customers. This will
greatly increase ASM’s manufacturing flexibility to grow
without additional infrastructure to support.
The global presence of ASM’s supply base continues to
enable us to better handle the ever-changing restrictions
and regulations on rules against sourcing from and to
different countries. And with more global demand for
many of the same materials, ASM is putting long-term
strategies in place to assure continuity of supply and
capacity to support our ambitious plans.
Increasing supplier value-add through
outsourcing
Historically, ASM has used outsourcing to increase
manufacturing flexibility and drive low-IP assemblies with
low configurability to a few key contract manufacturers.
For some of the assemblies, this created waste for cost,
lead-time, and resources. In 2024, ASM created a
program for our outsourced partners to add more value
to the modules they provide, and ideally test and
package them to be shipped to customers or MIT ready.
Supply chain model
Ship to customer
Ship to customer
ASM to customize
and test
Send to ASM
Contract
manufacturing
module
Contract
manufacturing
module +
customization and
test
Old model
MIT model
Enabling suppliers to manage configurability (customer-
specific options), test the modules, and have them
‘customer-ready’ will save ASM floor space as well as
non value-add un-crating and additional labor hours on
the module. Moving more value to the outsourced
partners also enables future growth with minimal needs
to expand facilities to enable growth.
This shift drives a need to ensure we are choosing the
right suppliers and have a mutual long-term commitment
to working together. In 2024, ASM completed pilot builds
of two high-running modules with two different suppliers,
and we will look to expand this program in 2025.
Early engagement
Speed to market for new products and technologies is
critical to ASM’s success. Traditionally, the timeline from
engineering concept to lab qualification and, ultimately,
customer approval and ramp could take months. With
the breakneck speed of innovation, the time from
concept to ramp can now almost be simultaneous. These
expectations for faster time to market have had to
change our supplier engagements. Key suppliers now
partner with our engineering teams to drive materials in
parallel to designs being completed. This partnership not
only improves the speed to a finished product but also
gets us to a better-quality product as well. Suppliers
provide upfront feedback on manufacturability and other
improvements for the designs. Engaging our suppliers
earlier also facilitates more seamless ramp-ups for high
volumes as the new products get adopted.
With numerous new products launched this year, ASM
engaged several suppliers much earlier in the product
lifecycle to handle outsourced modules. Going forward,
we will target key suppliers to grow that early design
engagement and use their expertise and abilities to help
us release high quality products faster.
Targeted long-term partnerships and capacity
ASM shares many suppliers and sources of raw materials
with end customers and other semiconductor
companies. To assure ample capacity and continuity of
supply, we have a strategy that involves growing key
supplier partnerships and more active engagement in
constrained materials.
The ASM supply base has grown over time through
various acquisitions and its legacy manufacturing
footprint. In some areas, this has lead to a very high
number of suppliers for a relatively modest amount of
total spend. This situation is not ideal for securing
priority with suppliers for delivery and capacity, and also
weakens negotiation leverage. ASM has been actively
targeting key suppliers by part family and commodity.
The goal is to drive new products to those key suppliers,
consolidate legacy parts from smaller suppliers, and
achieve closer alignment and support from these key
suppliers. One example is a commodity where we have
over 25 suppliers and are driving a strategy to get to five
over the next year. We believe this strategy will better
align ASM's interest with those of its suppliers, and also
enable a healthier environment for supplier and
commodity management.
There were many lessons learned from the COVID
pandemic, in particular the importance of understanding
and protecting materials and capacity further down
supply chains (i.e. raw materials and other key
components). We have worked with our suppliers to
identify those potential risk areas, especially sole-source
or geographic risk, and put agreements and programs in
place to enable multi-sourcing as well as driving
engagements (through ASM and/or our manufacturers),
to secure supply for the future.
Partnering with fewer suppliers creates a better
environment for engaging in capacity agreements,
ensuring that ASM has the flexibility to react quickly and
grow.
Risk and protecting the supply chain
ASM has encountered several areas of risk in the supply
chain that we have had to mitigate over the past few
years. These include the impact of wars, cybersecurity,
chips shortages, and natural disasters. In 2024, these
Introduction
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Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
51
risks persisted and continued to evolve, especially in the
areas of geopolitical tensions and cybersecurity.
We continue to evaluate our supply-chain footprint,
including sub-tier suppliers and sources of raw materials
to ensure a reliable supply, even with new and emerging
restrictions from various governments and organizations
on the ever-evolving list of regulations. We believe our
global footprint and developed strategies are well
positioned to continue supporting our customers, even if
restrictions continue to tighten. Additionally, we continue
to evaluate all aspects of the supply chain to assess
potential continuity threats if new tensions arise.
Cybersecurity remains a major source of concern for our
suppliers, and ASM has previously experienced supply
shortages and delivery risks due to suppliers being
impacted by cybersecurity issues. We have added
cybersecurity to our supplier audits and supplier
scorecards. From this, we have identified gaps in
suppliers’ cyber environments, and driven them to
correct these or risk losing ASM’s business. As with all
technology, we expect continued advancements from
malicious actors, and we will drive our suppliers to keep
up with the latest protocols and protections, while
ensuring that valid continuity plans are in place in the
event of an incident.
Supplier Day and Supplier Awards
ASM held its annual Supplier Day in Singapore in
November 2024, bringing together over 75 top suppliers
and 160 attendees. The event allowed us to share our
impressive growth story, explore the cutting-edge
technology driving our success, and highlight our strong
progress on sustainability initiatives. Attendees had the
unique opportunity to connect directly with key ASM
executives.
Events like these foster a shared sense of vision and
direction with our suppliers. A highlight of the day was
recognizing our outstanding suppliers for their
exceptional performance and support. Congratulations
to our Supplier Performance Award winners:
• Benchmark Electronics;
• Horiba; and
• Foxsemicon.
We also celebrated suppliers who have made significant
contributions to our sustainability efforts. These include:
• Horiba for Climate Leadership;
• Celestica for Social Impact, and;
• KLK for Small Business Impact.
Supplier Awards 2024
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Strategy and performance
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
52
14. Sustainability highlights
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
53
2024 key achievements
Published our
Climate Transition Plan
Grew our female representation
to 18% globally
Achieved 100%
renewable electricity
Lowered our
recordable injury rate to 0.24
Reduced Scope 1+2 GHG
emissions by 52%
Retraining 92% of employees on
our Code of Business Conduct
Achieved A ratings for CDP
Climate and Water
95% participation rate
in employee engagement survey
SDGs
Innovation is at the heart of our purpose to improve people’s lives
through advancing technology. Our vision is to lead in sustainability,
setting ambitious goals and aligning our priorities with global standards
to extend our reach and influence. Our integrated effort aligns with our
long-term value-creation goals for all our stakeholders and supports the
advancement of five UN SDGs that are intrinsic to our business:
2024 performance dashboard
Planet
Target
2024 result
Status
Reach 100%
renewable electricity by 2024
up 12
percentage
points
from 2023
Achieved
Reduction of
Scope 1+2 GHG emissions
by 90% by 2035*
down 61%
since 2021
In progress
Reduction of Scope 3 GHG emissions
by 97% per EUR of value added
(gross profit) by 2035*
down 41%
since 2021
In progress
* Against a 2021 baseline
Rating results
In 2024, ASM continued to be recognized across multiple Sustainability and ESG ratings:
CDP Climate Change
and Water security
S&P Global CSA
Sustainalytics
(risk rating)
MSCI ESG
ISS ESG
Corporate Rating
FTSE Russell
A / A
71
and yearbook member
10.4
(low risk)
AA
C+
(Prime)
4.0
First time on A list
Improved from 2023
Improved from 2023
On par with 2023
Improved from 2023
On par with 2023
People
Target
2024 result
Status
20% female representation
among the sub-board
by 2025
Flat with
17%
In progress
20% female representation
among all employees
by 2025
up 1 p.p.
to 18%
In progress
Total injury rate ≤0.37
in 2024
down 2%
to 0.47
Behind target
Total recordable injury rate
≤0.17
in 2024
down 14%
to 0.24
Behind target
14.1 Interview with our Head of
Sustainability
John Golightly joined ASM as director environment,
health & safety (EHS) in 2012 and became VP and
Global Head Sustainability in October 2023. John
discusses ASM’s sustainability achievements in
2024, and new initiatives in sustainability areas
such as climate action and human rights. He also
shares his view on the role of the semiconductor
industry, and ASM’s contributions, in addressing
future sustainability challenges and making positive
impact.
You’ve been involved with sustainability-related
work for a long time. How did it begin and where
did your interest come from?
As a teenager in the 1980s, I was very much influenced
by the burgeoning environmental movement. The
depletion of the ozone layer caused by
chlorofluorocarbons (CFCs) first made me aware of the
significant environmental damage humans can cause.
Climate change was emerging as a critical global issue,
along with growing concern about industrial pollution
and environmental disasters. The Bhopal chemical
disaster and widespread famine in Africa highlighted the
devastating consequences of environmental neglect.
When an opportunity presented itself to work in the area
of environment, health, and safety, I jumped at the
opportunity. It was a way I could make a real difference.
My interest in technology, and the effect it can have on
solving sustainability issues, is one of the main reasons
I've been working in the semiconductor industry for
almost 25 years. ASM is committed to having a positive
impact, and has been a great place for me to continue to
grow and play a positive role.
What were ASM’s main achievements in
sustainability in 2024?
It was a significant year for ASM sustainability, with
several major achievements that supported our ambition
to lead in sustainability.
For example, for the first time, we achieved 100%
renewable electricity across all of our operations
globally.
“We achieved our target for 100%
renewable electricity in 2024, a first
milestone towards net zero by 2035.”
For Scope 1+2, we saw a significant drop in 2024,
decreasing emissions by 51% from 2023, primarily from
our adoption of renewable electricity. In addition, we
released our first Climate Transition Plan that details how
we aim to reach net zero by 2035. The plan includes
collaboration across our industry and value chain. We are
proud of the fact that we are a founding sponsor to the
Catalyze program that stimulates and supports our
supply chain in accessing renewables. In social
sustainability, we released our first comprehensive
Human Rights policy, aiming to strengthen our
engagement into our supply chain to reduce impact and
risks.
What strategies are you using to achieve and
sustain 100% renewable electricity?
Our initial strategy was to secure unbundled energy
attribute certificates (EACs) and 'Green Premiums'. From
the start, we immediately set strict criteria on the quality,
location, project types, and traceability of certificates.
Additionally, we aimed to bring in all the procurement
geographies. Some regions presented significant
challenges, and it took us a few years to build the
networks we need to access the right quality. In fact, we
joined RE100 in 2023 to raise the bar for ourselves, and
the global corporate renewable energy initiative
recognized us as 'Best Newcomer' in 2024. We aim to
transition to longer-term solutions that bring more
additionally to the grids, such as in vPPAs and working
with our utilities on new bundled opportunities.
In your view, what are the biggest challenges the
industry and value chain face in addressing
climate change?
The challenge has been about coming together and
organizing. Across the semiconductor value chain, there
is undoubtedly a strong desire to make a positive impact.
But when you look at the different sectors within the
value chain – from fabs, to equipment makers, to
material and chemical suppliers – there are varying and
unique challenges. Of course our industry is not alone in
this, but we have one of the most complex supply
chains. Building consensus on how to decarbonize
across that complexity can be a challenge. The good
news is that we are building momentum and
engagement as an industry.
“Tackling climate challenges requires
collaboration across the semiconductor
value chain.”
Personally, as Chair of the Semiconductor Climate
Consortium (SCC), I have had the opportunity to
experience the power of collaboration among industry
peers and stakeholders, and I know that it's through this
collaboration that we will be able to tackle the
challenges in front of us.
John Golightly
Head of Sustainability
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
54
You mention the release of the Human Rights
policy. How is ASM incorporating this into its
operations and supply chain?
Human rights touch on everything: From forced labor, to
wages, to living conditions. ASM and its operations are
‘low risk’, yet regardless of this, we continually monitor
our conditions to make sure we remain low risk. The
same cannot always be said for a global supply chain. As
technology advances and changes, the supply chain
must remain dynamic, and this can introduce new risks
when new suppliers are introduced.
And deeper down in the supply chain, the risks become
less visible. Having a comprehensive Human Rights
policy sets the groundwork to drive a stronger and
clearer set of expectations for our suppliers to work
from, and to dive deeper into our extended supply chain.
This is supported by our due-diligence efforts with the
supply chain, including risk assessments, training and
engagement, supplier capacity building, and audits.
Employee safety has been an important pillar for
ASM for many years – now you've launched a
new safety strategy with a strong focus on
engagement. How do you see engagement
impacting ASM’s safety culture?
ASM continues to have one of the lowest injury and
recordable rates in our industry. But safety is not just
about the end result, it’s about the journey. Someone
getting injured is a result we want to avoid, and
preventing this result is about instilling the right culture.
Our safety culture is centered around prevention. In
2024, after years of engagement challenges due to the
pandemic, we paid special attention to engagement in
our safety programs. We asked our top leadership to
share their thoughts on safety and turned their
responses into videos we shared during our first 'Be
Safe' week. Our leadership's key message focuses on
ensuring that all employees know they can call a safety
'Stop Work' at any time. We have also included a safety
update in our quarterly all-employee calls.
“In 2024, we took further steps to
strengthen ASM's safety culture.”
New technologies such as AI create value for
society and help improve people’s lives. Yet they
have also resulted in a steep increase in
electricity usage in data centers . What role can
ASM and the semiconductor industry play in
addressing this?
Our industry recognizes we have enabling technologies
for a green transition. To move from what I call analog to
digital in our energy will require our technologies –
whether it's in renewable electricity and grid
management, or transportation and electric vehicles.
And none of this can be accomplished without the
technology our industry creates – the movement of
electrons. And the more the transition takes hold, the
more it will be apparent that semiconductor device
power efficiencies are critical.
This is where ASM is excited to be making
advancements – such as in ALD and in SiC – for our
customers, with both solutions being critical parts of the
green transition. We are committed to enabling our
customers to drive advances in AI computing power. By
taking part in initiatives like the SCC, we aim to continue
to be part of the conversation with customers and
hyperscale cloud providers, to address critical
technological and environmental challenges responsibly.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
55
15. General disclosures
57
15.1 Company overview
57
15.2 Sustainability governance
57
15.3 Stakeholder engagement
59
15.4 Impacts, risks, and opportunities (IROs)
59
Double materiality assessment
61
16. Climate action
62
16.1 Climate impacts, risks, and opportunities
62
16.2 Climate action approach and results
63
Decarbonization roadmap
65
16.3 Product sustainability
68
16.4 Own operations
69
16.5 Supply chain emissions
71
17. People
73
17.1 People practices
73
17.2 Diversity, equity, and inclusion
74
17.3 Skilled workforce
77
17.4 Health, safety, and employee
well-being
78
18. Supply chain responsibility
81
18.1 Supply chain overview
81
18.2 Engaging our suppliers
82
18.3 Taking action
84
19. Business conduct
86
19.1 Corporate culture and ethics
86
19.2 Ethics, Bribery, and Corruption
87
20. EU taxonomy
88
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
56
Sustainability
statements
15. General disclosures
ASM maintains a strong commitment to
transparency and accountability in its
sustainability practices. Our sustainability
governance framework outlines the key policies,
processes, and risk-management practices that
guide our decision-making. By embedding
sustainability throughout our operations, we aim
to ensure that our efforts are aligned with
stakeholder expectations, and support ASM's
long-term value creation.
15.1 Company overview
Our sustainability statements
While the European Corporate Sustainability Reporting
Directive has not been transposed and implemented in
Dutch law on the date of this Annual Report, our
sustainability statements have been prepared in
accordance with the European Sustainability Reporting
Standards (ESRS). The sustainability statements cover
ASM’s consolidated performance, similar to our financial
statements. No entities were excluded. We incorporate,
where needed, relevant financial data derived from our
consolidated financial statements, which adhere to IFRS.
Our sustainability policies, actions, metrics, and targets
include important data from both upstream and
downstream value chain activities.
These include:
• Scope 3 greenhouse gas (GHG) emissions, covering
significant upstream and downstream value chain
activities.
• Supply chain disclosures, covering material impacts,
risks, and opportunities (IROs) related to workers in
ASM's value chain.
For areas outside of these specific disclosures, we
concentrate on our internal operations, with qualitative
insights into the value chain provided when necessary.
Quantitative metrics are generally focused on ASM's
direct activities unless specified otherwise. For details
about our business model, products, and value chain,
refer to chapters 4-8 (in accordance with ESRS SBM-1).
15.2 Sustainability governance
Sustainability leadership council
Supervisory Board
q
Management Board
q
Chair
q
Sustainability
Planet
Supply chain
Innovation
People
IP &
cybersecurity
q
Corporate control and Finance
q
Communications
Organization of our sustainability framework
Our sustainability governance is fully integrated into the
organization, with strategic management residing with
the Sustainability Leadership Council (SLC), chaired by
the Senior Director Sustainability. The SLC meets
monthly to review material IROs related to sustainability
and reports to the Management Board. The SLC is
comprised of functional leaders, with functions
represented in the graphic on the left. Sustainability is
overseen by the Management Board, which takes
responsibility for managing sustainability risks, setting
goals, and integrating these factors into strategic
decisions. This includes climate change.
Since Q2 2024, the Management Board has received
quarterly updates on performance against key metrics.
The Supervisory Board and its Audit Committee also
receive quarterly updates. These update reports focus
on our sustainability performance against targets,
including progress on our net-zero ambition, health and
safety programs, and gender-diversity initiatives. The
Supervisory Board plays an important oversight role on
our sustainability strategy. The Audit Committee plays an
important oversight role in ensuring the accuracy and
integrity of our sustainability reporting. Refer to chapters
21 to 24 for more information on the composition of the
Management Board, Supervisory Board, and Audit
Committee, including their roles, responsibilities,
charters, and expertise in sustainability matters.
Sustainability incentive schemes
Sustainability is a key driver of decision-making at ASM,
with sustainability-related objectives integrated into
incentive schemes across the organization. In 2024, 25%
of the short-term incentives (STI) for the Management
Board were based on non-financial targets, including:
• Achieving our CO2 reductions in line with our SBTi-
approved reduction target (6% of total);
• Growing the representation of women in our sub-
board and across our global workforce;
• Ensuring the quality of our public sustainability
disclosures, and obtaining third party-provided limited
assurance; and
• Reducing the total injury rate through improved safety
measures.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
57
”I see the Corporate Sustainability
Reporting Directive (CSRD) as an
opportunity to enhance how we measure
and communicate our impact, helping us
drive progress and set a benchmark for
accountability in our industry.”
Dylan McNeill
Senior Director Sustainability
Performance is evaluated on a sliding scale, with the
specific terms approved by the Supervisory Board, as
advized by the Nomination, Selection, and Remuneration
(NSR) Committee. Beyond the Management Board,
sustainability goals are embedded in corporate
objectives as well as department-level objectives,
ensuring a company-wide focus on sustainability targets.
Sustainability due diligence
Sustainability due diligence is woven into our
governance, strategy, and business model. We
continuously engage with stakeholders, identify and
assess potential adverse impacts, take action to address
them, and track the effectiveness of our efforts to
ensure meaningful progress.
Due diligence coverage
Core elements of due diligence
Sections in the report
a) Embedding due diligence in
governance, strategy, and
business model
Section 15.1
Section 15.2
b) Engaging with affected
stakeholders in all key steps of
the due diligence
Section 15.3
Section 17.1
Section 18.2
c) Identifying and assessing
adverse impacts
Section 15.4
d) Taking actions to address
those adverse impacts
Sections 16.3-16.5
Chapter 17
Section 18.3
Section 19.2
e) Tracking the effectiveness of
these efforts and
communicating
Our sustainability reporting principles
Our non-financial information is measured and monitored
according to a set of clear reporting principles, which
ensures that our sustainability disclosures are both
comprehensive and reliable:
• Sustainability context: Integrating sustainability into
reporting by considering social, financial, and
environmental impacts. We prioritize long-term value
for stakeholders and align with global sustainability
standards.
• Balance: Providing a balanced view that reflects both
strengths and areas for improvement. We offer a fair
assessment of our overall performance.
• Comparability: Facilitating meaningful comparisons of
performance and metrics over time. We apply
consistent methodologies to ensure our reports
remain reliable and insightful.
• Clarity: Ensuring information is clear and accessible
by all stakeholders. We make it easy to understand
and utilize our reports.
• Completeness: Ensuring reports include all relevant
non-financial data for a comprehensive view. We
regularly reassess our data to maintain its accuracy as
our organization evolves.
• Accuracy: Committing to precise data quantification
to support informed decision-making. We strive to
minimize bias and uncertainty in our reporting.
• Verifiability: Documenting and disclosing processes
transparently to allow independent verification. We
reinforce trust in our data through accountability.
• Timeliness: Prioritizing timely reporting to ensure
information is available when needed. We enable
stakeholders to make well-informed decisions.
Through these principles, we have implemented a robust
framework to mitigate risks of material misstatement in
our sustainability reporting due to human error,
incomplete data, or fraud. This framework is backed by
an internal control system that helps ensure the integrity
of our sustainability disclosures. Key elements of the
framework are as follows:
a. Three lines of defense model to ensure effective
reporting processes.
b. Multi-layered internal control system combining
preventive, detective, and remediating activities to
uphold information integrity.
c. Quarterly review meetings with topic owners and
senior management to assess our key performance
indicators.
d. Bi-annual report-out on the operating effectiveness of
our control measures to the Management Board and
Supervisory Board.
Our sustainability reporting principles
Purpose
Mitigate risks of material misstatement
Three lines of defence model
Ensures effective reporting processes
Multi-layered internal control system
Combines preventative, detective and remediating
activities for information integrity
Quarterly review meetings
Involves topic owners and senior management to
assess KPIs
Bi-annual report-out
Reports on control measures to the Management and
Supervisory Boards
Outcome
Ensures accurate and reliable sustainability reporting
Data methods, limitations, and estimations
For full details on our data definitions, methods,
limitations, estimations, and restatements of historic
figures, refer to chapter 31 of this report.
Scope 1 direct emissions originate from primary data
sources. For limited cases, ASM applies country
approximations.
Scope 2 emissions are determined by converting energy
use bills (utility and consumption data) to tonnes CO2e,
utilizing country-specific emission factors derived from
standard emission factor databases. For a limited
number of leased sites, consumption figures are
estimated based on building size, occupancy, and
operational hours.
Scope 3.1 emissions are estimated using an economic-
environmental input-output (EEIO) model, applying a
spend-based approach that utilizes the EPA NASCI
database. While this method may not fully capture the
impact of specific greenhouse gas reduction initiatives,
methodologies and parameters are reviewed annually to
incorporate the latest insights.
Scope 3.4 and 3.9 emissions are calculated using a fuel-
based and distance-based method. Uncertainties may
arise from variations in supplier reporting and tracking of
exact shipment routes. Scope 3.11 emissions are
calculated using a process-based method to determine
the energy consumption of specific reference products.
This calculation follows independent tests aligned with
the SEMI S23-1021E standard. Lifetime emissions are
assessed and accounted for at the point of sale, using
location-based emission factors and assuming an
average operational lifespan of 15 years. This timeframe
is derived from peer analysis, expert input, and internal
analysis of service records.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
58
15.3 Stakeholder engagement
ASM stakeholder framework
Stakeholder engagement is central to our sustainability
strategy. We align our policies with global standards and
engage with a variety of organizations to advance
shared priorities and drive progress on our sustainability
goals. ASM's stakeholder framework focuses on regular
engagement to reflect stakeholder interests in our
sustainability strategy and keep our key IROs up to date.
Below is our stakeholder engagement table, listing the
main stakeholders and type of touchpoints we employ. It
provides a non-exhaustive list of touchpoints that
occurred in 2024, in the context of stakeholder
engagement and insights-gathering via regular business
operations. This also feeds into our identification
process towards ASM’s most important IROs. Refer to
section 15.4 'Impacts, risks, and opportunities' for more
information.
By maintaining strategic relationships with groups like
SEMI, the Responsible Business Alliance (RBA), and
RE100, we actively contribute to industry-wide efforts to
advance sustainability. In 2023, ASM helped establish
the Semiconductor Climate Consortium and joined the
board of the UN Global Compact Network Netherlands,
where we provide strategic leadership on emerging
sustainability issues. In 2024, ASM continued to chair the
Semiconductor Climate Consortium for its second year.
We also continued to serve on the board of the UN
Global Compact Network Netherlands. Our active
participation in these groups strengthens our approach
to corporate responsibility and keeps us at the forefront
of sustainability initiatives.
Stakeholder touchpoints
Touchpoints
Applicable focus areas
Customers
• Periodic meetings
• Key account management
• Development sessions
• Joint (innovation) projects
• Innovation
• Planet
• People
• Responsible supply chain
Employees
• All-employee meetings
• Works council, employee
resource groups,
engagement surveys
• Employee development
dialogues
• Innovation
• Planet
• People
Investors
• Annual General Meetings
• Roadshows
• Conference calls
• Broker conferences
• Innovation
• Planet
• People
• Responsible supply chain
• Governance
Suppliers
• Commodity manager
engagement
• Annual Supplier Day
• Quarterly business reviews
• Innovation
• Planet
• People
• Responsible supply chain
• Governance
NGOs
• Engagement letters and
sessions
• Bilateral dialogues
• Planet
• People
• Responsible supply chain
Industry consortia
• R&D partnerships
• RBA; SEMI; SIA; SESHA;
RE100
• UN Global Compact
• Innovation
• Planet
• People
• Responsible supply chain
• Governance
Communities
• Employee volunteering
• Company donations
• Contributions to local
communities
• Planet
• People
15.4 Impacts, risks, and opportunities
(IROs)
Our double materiality assessment (DMA)
We conduct an annual materiality assessment to
evaluate our sustainability priorities from two angles: the
impacts that ASM has on people and the planet, as well
as the financial risks and opportunities that sustainability
topics might have on ASM. This process identifies key
IROs, ensuring we focus on areas where our
sustainability strategy can drive the most value. The
process involves four steps:
1. Operating environment analysis: We assess our
business context, value chain, and stakeholder
landscape. We examine the full scope of our business
activities, from upstream suppliers like smelters,
component producers, contract manufacturers, and
utility providers to downstream customers, including
semiconductor manufacturers.
2. Identifying long-list topics: We define our sustainability
priorities through stakeholder touchpoints,
benchmarking activities, and industry research
conducted by our internal experts. Identified topics
are informed by the Corporate Sustainability Reporting
Directive (CSRD), peer and industry research, and
ASM’s enterprise risk-management framework.
3. Prioritization and validation: The long-list of
sustainability topics is refined through workshops and
consultations with both internal and external
stakeholders. Methods such as surveys, expert
interviews, and desk research are used to capture
stakeholder priorities. These topics are then validated
and prioritized using both impact and financial
materiality lenses, ensuring the most critical issues
are identified.
4. Board verification: Once the list of material topics is
finalized, it undergoes a multi-tiered approval
process. ASM’s Management Board, Executive
Committee, and Sustainability Leadership Council
validate the topics before receiving final approval
from the Supervisory Board. This ensures ASM’s
strategic objectives and sustainability efforts are
focused on the most critical issues, enabling us to
manage risks effectively and seize opportunities for
positive impact.
Assessing adverse impacts
Our materiality assessment evaluates both direct and
indirect impacts across our value chain. Internally, we
assess impacts such as energy consumption and
employee well-being. For impacts arising from business
relationships, we evaluate the processes of upstream
suppliers and the energy consumption of our products
downstream. This value chain lens enables us to
understand the full spectrum of our potential impacts on
people and the environment, whether through our direct
operations or broader ecosystem. By carefully analyzing
these impacts, we can prioritize areas where negative
effects are most significant and direct our resources
towards tailored mitigation strategies.
Risk management and opportunity identification
Our process carefully maps the interconnections
between risks, dependencies, and opportunities. For
example, we assess the risks associated with climate
change – such as increased operational costs due to
carbon pricing – alongside opportunities to develop
energy-efficient products. This matrix approach allows
us to visualize how different risks and opportunities
interact, informing a more comprehensive sustainability
strategy that not only mitigates risks but also capitalizes
on emerging opportunities.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
59
Financial materiality and integration with
Enterprise Risk Management
Under financial materiality, we evaluate the magnitude
and likelihood of gross sustainability risks and
opportunities over different time horizons, integrating
these with our Enterprise Risk Management (ERM)
framework. Key elements include:
1. A standardized risk assessment matrix that applies to
all risk types, including sustainability-related risks;
2. Long-term scenario analysis, particularly for climate-
related risks and opportunities;
3. Risk-mapping tools that identify cascading effects
between sustainability and business risks; and
4. Scenario analysis to inform strategic planning and
prioritize risks, particularly those related to climate
change.
Based on our assessment, we do not anticipate material
negative financial effects in the short- to mid-term from
the net risks. We expect to maintain effectiveness in our
management practices, lowering the chances of material
financial impacts over the long term as well, although
these outlooks are subject to higher levels of
uncertainty. Our risk management measures align with
our strategic goals, so reducing the likelihood of
significant potential financial impact.
To continue to implement our strategic plans, we rely on
a robust financial position that includes a healthy cash
balance, sustained free cash flow, and a flexible
revolving credit facility. These funding sources ensure
we have the necessary resources to execute our
strategic initiatives effectively while maintaining financial
resilience.
Accelerating sustainability through advocacy
2018
Titanium Member SESHA
SESHA promotes ESH education for the
high-tech and associated industries. ASM
serves as president of the SESHA board.
2020
Full Member Responsible Business
Alliance (RBA)
RBA is the world's largest industry coalition
dedicated to corporate social responsibility
in global supply chains.
2023
Board Member UN Global Compact
(UNGC)
UNGC aims to advance societal goals and
support the implementation of the SDGs.
ASM is a board member of the UN Global
Compact Network Netherlands.
2023
Founding Member Semiconductor
Climate Consortium (SCC)
The SCC is developing an industry climate
strategy to reduce its carbon footprint. For
the second year running, ASM is chairing
this consortium.
2023
Member RE100
RE100 is a global initiative led by the
Climate Group in partnership with CDP,
uniting businesses committed to 100%
renewable electricity.
2023
Founding Member Catalyze
Catalyze is a pioneering initiative to
accelerate the adoption of renewable
electricity across the global semiconductor
value chain.
2024 results and continuous improvement
Our 2024 double materiality assessment (DMA) focused
on validating the findings from the previous year,
ensuring that the identified topics in 2023 remain
relevant and complete. No significant changes were
made to the methodology, but we continue to refine our
process, keeping pace with advancements in
stakeholder engagement, impact measurement, and
integrated risk management.
It is important to note that various topics considered
material in terms of their societal or environmental
impact (impact materiality) did not necessarily equate to
them being material in financial terms, and vice versa.
This distinction highlights the nuanced nature of our
DMA process and ensures that both perspectives are
considered independently when evaluating IROs. From a
timeline perspective, we consider the material impacts
identified to be relevant in the short term, and we expect
them to remain so in the mid- to long term. Unless
communicated otherwise, we adhere to the standard
timelines that the European Sustainability Reporting
Standards (ESRS) prescribe. None of the metrics related
to material topics are validated by an external body
other than the assurance provider.
Following the DMA process, the material topics identified
– shown in the DMA table on the next page – form the
foundation of our sustainability priorities.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
60
Double materiality assessment
Impact materiality
Financial materiality
Topic
Value chain Description of impact
Type of
impact
+ | -
Description of impact
Type of
impact
+ | -
Environment
Climate change adaptation
This topic is only relevant for the financial materiality perspective, not for impact materiality.
Extreme weather events (e.g. floods, storms, heat waves etc.) could impact ASM's operations by
causing physical damage to utilities and ASM's facilities.
–
Climate change mitigation
ASM contributes to climate change by emitting greenhouse gas (GHG) emissions through its
operations and value chain.
–
Compliance to environmental laws and regulations could drive up cost.
–
Preference for our low-carbon technology could increase ASM’s market share.
+
Energy availability
ASM reduces energy availability through energy usage in its operations and across its value
chain.
–
Low energy availability from the market might interrupt business processes.
–
Social
Training and skills development
ASM invests in training and skills development of its workforce, positively impacting long-term
employability and workers' morale.
+
Appropriate training and skills development could lead to highly skilled, motivated, and
dedicated employees. It supports our ability to attract and retain talent.
+
Diversity and gender equality
ASM supports an inclusive and diverse workforce (incl. gender equality), positively influencing
workers' morale.
+
Failing to establish a diverse workforce could result in missed opportunities to attract and retain
top talent and improve customer orientation and decision-making.
–
Equal pay
ASM offers equal pay, resulting in a level playing field for individuals, thereby positively
influencing the prospects of minority groups and general workers' morale.
+
This topic did not meet our threshold for financial materiality.
Adequate wage
ASM provides employees with an adequate wage, enabling a decent living standard for
themselves and their families, increasing their quality of life.
+
This topic did not meet our threshold for financial materiality.
Health & safety at ASM and
ASM suppliers
If ASM does not facilitate a healthy and safe work environment for its workforce, accidents and
harm to personal health can occur.
–
This topic did not meet our threshold for financial materiality.
If ASM does not stimulate a healthy and safe work environment for suppliers (incl. further down
the chain such as 3TG suppliers), accidents and harm to personal health can occur.
–
This topic did not meet our threshold for financial materiality.
Working hours at ASM and
ASM suppliers
Excessive working hours could compromise the health and well-being of our own workforce.
–
This topic did not meet our threshold for financial materiality.
Excessive working hours could compromise the health and well-being of supply-chain workers.
–
This topic did not meet our threshold for financial materiality.
Involuntary labor at ASM
suppliers
People working for our suppliers could be working against their will, creating an unsafe work
environment and compromising their health, well-being, and worker rights.
–
Involuntary labor in ASM's supply chain could lead to reputational damages and future non-
compliance which could impact access to markets.
–
Governance
(Anti-)Bribery and corruption
This topic did not meet our threshold for impact materiality.
Non-compliance to (anti-)bribery and corruption regulations could lead to severe penalties and
financial damages and could impact ASM's reputation towards customers and financial markets.
–
Corporate culture
ASM's corporate culture stimulates desired corporate behavior, resulting in respectful and
diligent behavior to people and the environment.
+
ASM's corporate culture supports the company’s ability to attract and retain talent.
+
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
61
16. Climate action
At ASM, we continue to advance our efforts to
mitigate climate change and adapt to its impacts.
We focus on reducing greenhouse gas
emissions, enhancing energy efficiency, and
integrating renewable energy solutions across
our operations and value chain. Our ambition to
achieve net-zero emissions by 2035 is a driver of
our long-term strategy.
16.1 Climate impacts, risks, and
opportunities
ASM acknowledges that climate change is a critical issue
facing the entire planet. It increases global risk of
extreme weather events, habitat and biodiversity loss,
human displacement, and disease, among other impacts.
It also poses business risks to ASM and its stakeholders,
including our value chain. We recognize these risks and
consider climate change to be of high materiality to the
organization. This is why we are taking action to do our
part to mitigate risks posed by climate change. At the
forefront of our efforts is enhanced collaboration –
climate change is a risk the whole planet faces, so we
must work together to face the challenges head on.
Our manufacturing processes, activities carried out on
our behalf in our supply chain, and the use of our
products have associated greenhouse gas (GHG)
emissions, and thereby a contributing effect to climate
change. As a global semiconductor equipment provider,
we recognize our role in the broader environmental
impact of the industry. To address this, we aim to
improve the energy and resource efficiency of our
products, adopting eco-efficient designs, and
transitioning to renewable energy sources in our
operations, while decarbonizing our supply chain. These
efforts are part of our ambition to reduce our Scope 1, 2,
and 3 emissions and align with global climate targets.
To set our priorities in managing climate risk, ASM
defined a formal annual process in 2022 to identify and
manage climate-related risks and opportunities, taking
into account the framework provided through the Task
Force on Climate-related Financial Disclosures (TCFD).
Energy availability is another critical dimension of
climate-related impacts and risks, especially as the
global need for energy intensifies. Reliable access to
energy is vital for communities, but also ASM’s
operations and broader value chain. We recognize the
potential business risks posed by energy scarcity, such
as operational disruptions and increased costs,
particularly in regions facing energy shortages or
infrastructure challenges.
Since its inception, our climate adaptation risk and
opportunity assessment has evolved annually in scope
and depth. In 2023, the assessment expanded to include
new regions, such as supplier site locations, reflecting
the critical role of supply-chain resilience in addressing
climate-related risks.
Deep-dive and hotspot assessments conducted
in 2022 and 2023
Transition risks:
• Stricter regulations on fluorinated gases and other
GHG emissions
• Changes in carbon-pricing schemes
• Increased stakeholder scrutiny
• Renewable energy sourcing
Physical risks:
• Windstorms and tropical cyclones
• Heat waves and extreme temperatures
• Heavy precipitation and flooding
• Water scarcity and drought
Our 2024 assessment
In 2024, ASM concentrated on understanding the direct
economic impacts of climate risks and opportunities,
enabling more informed decision-making. Engagement
was broadened across the organization to incorporate
perspectives from a wider range of business units and
functions. This effort not only enhanced the assessment
process but also strengthened company-wide
awareness of climate-related risks and opportunities.
Our process consisted of four main steps:
a. Identification and monitoring: This step included a
review of the ASM Climate risk and opportunity (R&O)
long list9 and determined if any R&O topics must be
added to the short list for further assessment. Also, in
this step the previously identified R&O short list10 was
reassessed.
b. Assessment: This step involved conducting a scenario
analysis to assess the size and scope of the identified
R&O short list and conducting a business-impact
assessment to quantify the potential impact of the
risks and opportunities for ASM’s business strategy
and financial planning. The R&O short list was
assessed on a short-, medium- and long-term
horizon11.
c. Risk prioritization: Risks and opportunities, which have
the potential for a substantive financial or strategic
impact on ASM business, were prioritized, based on ASM
materiality thresholds. The most material risks were
integrated into the corporate risk-management process.
d. Action-planning and execution: This step included
planning and taking appropriate actions to mitigate/
manage material risks and opportunities, and review
business processes and controls to ensure that
activities are performed and acknowledged.
In 2024, ASM used two climate scenarios: one for
physical risks aligned to 4°C or higher warming,
reflecting a 'high-impact' scenario, and one for transition
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62
9 ASM Climate R&O long list: Aims to document the full suite of physical and transition risks and opportunities identified by stakeholders across ASM’s entire operations and value chain, irrespective of potential materiality, structured into three parts: climate-risk identification and
categorization; ASM’s perceived vulnerability to and potential business impact of this risk/ opportunity; strength of the climate change signal (i.e. the magnitude of change in frequency and/ or intensity of a specific hazard/ climate impact driver in a 1.5°C (for transition risks and
opportunities)/4°C scenario (for physical risks) compared to the baseline).
10 ASM Climate R&O short list: The list of climate risks and opportunities the business prioritized for further assessment using climate-scenario analysis.
11 ASM defines short-, medium- and long-term horizon for its climate change risk & opportunity assessment as follows: short-term: 1-5 years; medium-term: 5-15 years; long-term: 15-30 years
risks and opportunities aligned to warming below 1.5°C,
reflecting the 'rapid transition' scenario:
• 'High impact' scenario: Shared socioeconomic
pathways (SSP) 8.5 scenario.
• 'Rapid transition below 1.5°C aligned scenario':
Aligned with a 1.5°C pathway; (International Energy
Agency Net Zero Emissions Scenario (NZE) and
1.72°C/2°C pathway (IEA, the Stated Policies Scenario
(STEPS)).
Based on their potential materiality, the following two
risks and opportunities were prioritized for a deep-dive
assessment in 2024:
• Opportunity: Increased demand for low-carbon
semiconductor equipment, driven by evolving
customer preferences and regulatory demands across
different regions.
• Risk: Extreme heat-induced blackouts at the Phoenix
facility could potentially grow by 2050, resulting in a
potential increase in costs to our demo lab
operations.
At this time, we believe the customer preference for low-
carbon products represents a material financial
opportunity in the near- to mid-term horizon.
The occurrence of prioritized physical risks that were
assessed in the period 2022-2024 are not considered to
represent a material financial risk in the near- to mid-
term horizon. In our 2024 assessment of extreme heat-
induced blackouts, ASM assessed the mitigation costs
that it would bear to prevent any significant business
implications from prolonged blackouts. The associated
costs were below our materiality thresholds.
In 2024, ASM completed an impairment test that
included sensitivity checks with regard to ASM's asset
valuation under different climate-related scenarios. This
assessment did not identify any material financial
reporting impacts. Please refer to Note 5 of the financial
statements in this report.
Governance
Refer to section 15.2 'Sustainability governance' for more
information on how sustainability risks and opportunities
are governed at ASM. Our net-zero objectives are
integrated into the remuneration program of the
members of Management Board via a short-term
incentive (STI) plan, representing 6%. Refer to chapter
26 'Remuneration report' for more information on
Management Board remuneration.
16.2 Climate action approach and results
Our climate and net-zero policies
Following our identification of climate-related risks and
opportunities, ASM has developed Climate and Net Zero
policy statements, which are available on our website,
establishing our vision for ASM’s climate and GHG-
reduction goals and objectives, as well as addressing:
a. acknowledgement of climate-related risks;
b. identification of risks & opportunities to inform
strategic investments, business resiliency, and
sustainable operations;
c. actions to mitigate those risks and impacts;
d. reduction of emissions through efficiency, abatement,
and chemical use reductions & substitutions;
e. maximizing the sourcing of electricity from renewable
sources;
f. neutralizing remaining emissions; and
g. collaborating across our value chain for collective
global impact.
Net-zero target
In 2021, ASM announced its ambition for net-zero GHG
emissions by 2035 and has been taking concrete steps
towards building the appropriate support system around
this goal. This includes boosting our organizational
capabilities, strengthening our support of climate
programs, kicking off industry collaboration efforts, and
integrating necessary steps into our business strategy
and plans.
Our main transition levers
Decarbonize our supply chain
Purchased goods
and services (PG&S)
Scope 3, Category 1
16% of total 2023
GHG footprint
Reducing the emissions associated
with the goods and services used
to develop our tools requires us to
engage with our suppliers to
implement decarbonization
strategies in partnership with ASM.
Decarbonize our logistics
Logistics and
Transportation
Scope 3, categories 4
and 9, 3% of total
2023 GHG footprint
ASM is supporting the push for
logistics providers to adopt
Sustainable Aviation Fuel (SAF).
Additionally, we assess transport
routes to optimize source-to-
destination efficiency and reduce
emissions.
Decarbonize our operations
Direct emissions and
energy procurement
Scope 1 & 2
0.3% of total 2023
GHG footprint
This area is most directly within our
control, so we are working to
implement changes within our
organization’s operations. This
includes efficiency measures,
renewable energy procurement,
and more.
Decarbonize product use
Customer use of our
products
Scope 3, Category 11
77% of total 2023
GHG footprint
Customer use of our products
through their productive life
represents the most significant
portion of our GHG footprint. As a
vital area to reduce emissions in
pursuit of our targets, we must
collaborate across the industry to
decarbonize customer use of our
products.
In August 2023, we received Science Based Targets
initiative (SBTi) verification of our near- and long-term
and net-zero GHG targets by the SBTi. The results on
page 67 of this report count as our annual update. Our
targets include the following from a 2021 baseline year:
• Reduction of Scope 1 & 2 GHG emissions by 50.4% by
2032, and by 90% by 2035;
• Reduction of Scope 3 GHG emissions by 58.2% per
EUR of value added (gross profit) by 2032, and 97%
by 2035; and
• Net-zero emissions across all scopes by 2035,
allowing for the neutralization of remaining emissions
above the long-term targets to achieve net zero
through high confidence carbon-removal
mechanisms.
Interventions for Scope 1 and 2
Emissions (tCO₂e)
100%
Base year
and
business
growth
Procure
renewable
electricity
Green
hydrogen
for natural
gas
Electrification
Energy
efficiency
Residual 1)
78% of the reduction in Scope 1 and 2 GHG
emissions by 2035, compared to the 2021
baseline, will be achieved through procuring
renewable energy.
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ASM Annual Report 2024
63
(12)%
(1)%
(4)%
(5)%
(78)%
Interventions for Scope 3
Emissions (tCO₂e)
100%
Base year
and
business
growth
Decarbonize
products
Decarbonize
supply chain
Technological
learning 2)
All other
Scope 3
Residual 1)
Decarbonizing our products will help us
reduce Scope 3 GHG emissions by 60%
compared to the 2021 baseline.
We selected 2021 as the base year for our GHG
emissions targets as it marks the start of detailed GHG-
emissions tracking at ASM and represents a typical
operational year. This choice ensures the baseline value
is representative and reliable for measuring progress
towards our targets.
While our primary GHG emissions-reduction targets are
set for near-term 2032 and long‑term 2035, in
accordance with approved pathways, ASM‘s interim
target for the year 2030 is as follows:
• Reduction of Scope 1 & 2 GHG emissions by 41.2% by
2030 from 2021 base year;
• Reduction of Scope 3 GHG emissions by 47.6% per
EUR of value added (gross profit) by 2030 from 2021
base year.
Our net-zero target forms a core part of our broader
climate strategy, aimed at mitigating climate change
impacts and utilizing sustainable growth opportunities.
Progress against our targets is monitored quarterly and
reported annually. This tracking helps us to identify
areas where our actions and strategies may need
adjustments to better align with our net-zero goal. In line
with our strategic objective to accelerate sustainability,
we ensure that climate initiatives are integrated into our
business strategy and financial planning. For this
purpose, the VP of Sustainability takes part in business
strategy sessions that address the entire organization.
Climate Transition Plan
To turn our policies into action and progress towards our
target, ASM published its first Climate Transition Plan
(CTP) in March 2024, after developing our internal plan
in 2023. Our CTP directly supports our SBTi-verified net-
zero target. We have begun to implement the strategies
outlined in our CTP towards achieving net-zero
emissions, which are detailed in the following sections.
Our transition plan is built around three pivotal
decarbonization levers – supply chain, our operations,
and product use.
Planned actions to reduce emissions from existing or
future potential sources are key to showing how we will
achieve our intended decarbonization pathway. Our net-
zero roadmap is based on a set of intervention measures
and actions across our value chain.
We have mapped out the initial time frames over which
we expect to execute the prioritized actions for our
decarbonization core pillars across short-, medium-, and
long-term time horizons. The timing of these activities
will be updated dynamically as we further outline
implementation details and update our plans.
In addition to the three decarbonization levers, we are
also addressing emissions associated with logistics and
transportation. While this represents a smaller
percentage of our total footprint, we recognize the
importance of decarbonizing this area as part of our
comprehensive strategy. We are actively supporting
industry initiatives to accelerate the adoption of
Sustainable Aviation Fuel (SAF) by large logistics
providers. In the future, ASM may also procure SAF
credits as the market matures and becomes more
substantiated. Furthermore, we are assessing transport
routes and methods to identify opportunities for
optimizing source-to-destination efficiency, thereby
reducing the emissions linked to our logistics activities.
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1 Residual = difference between mapped reduction initiatives and SBTi allowed emissions by target year 2035 (net zero year).
2 Technological learning = emissions reductions that will occur due to decarbonization without direct action by ASM (e.g. use of low-carbon, renewable electricity
in value chain).
(60)%
(14)%
(17)%
(2)%
(7)%
Decarbonization roadmap
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Strategy and performance
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Leadership and governance
Financial statements
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Upstream
Operations
Downstream
Scope 3.1
Decarbonize our
supply chain
Scope 1 & 2
Decarbonize our
operations
Scope 3.11
Decarbonize our
product usage
Short-term: 0-3 years
Medium-term: 3-7 years
Long-term: >7 years
Collect improved supplier-specific data for GHG inventory
Conduct energy audits and implement energy-efficient retrofits, reduction measures, and conservation actions
Engage suppliers directly and via CDP and SCC initiatives to develop emissions-reduction actions, material innovation, science-based targets
Accelerate adoption of renewable energy across supply chain through industry-wide programs like Catalyze and one-on-one engagement
Develop and implement low-carbon procurement processes to decarbonize key materials
Electrify fossil-fuel combustion sources
Electrify facility processes and systems and shift towards alternative green fuels
Procure EACs to cover electricity consumption (100% by 2024)
Implement leading-edge technologies, control systems, and AI to enhance operational efficiency
Pilot electrically-based high-performing process gas abatement
Implement alternatives to EACs/RECs for viability and additionality
Replace high-GWP process gases, refrigerants, and heat transfer fluids across operations
Encourage customers to source renewable energy
Drive product innovation by increasing product energy and resource efficiency
Innovate to extend useful life and increase circularity of ASM products
Expand parts refurbishment and crate reuse programs to minimize wast and drive circularity
Eliminate single-use plastic, including expanded polystyrene (EPS), in packaging
To support the implementation of these decarbonization
strategies, we have identified capital expenditure
(capex) needs to support our decarbonization strategy.
These investments are focused on the following areas:
• Investments in energy-efficient technologies and
solutions within our sites and operations, as well as
our supply chain.
• Investments in infrastructural upgrades to shift away
from fossil fuels to viable low-carbon alternatives.
• Investments in R&D for sustainable products, to
reduce emissions during customer use.
Our approach to reporting our capex in scope of our CTP
is aligned with the standards set by the Commission
Delegated Regulation (EU) 2021/2178.
2024 greenhouse gas (GHG) emissions results
In 2024, ASM saw a significant reduction in its GHG
emissions across Scope 1, 2, and 3, with a 30% total
reduction year-over-year. Compared to 2023, our Scope
1 emissions have remained comparable with a 2%
increase year-over-year, reflecting our consistent
operational efficiency and emissions control measures.
This comparable result, despite organizational growth,
results from process optimizations and investments in
low-carbon alternatives.
For our market-based Scope 2 emissions we saw a 75%
reduction compared with 2023, driven by our transition
to renewable electricity globally. This year marks a major
milestone for ASM, as we have now achieved 100%
renewable electricity usage (2023: 88%). The remaining
Scope 2 market-based emissions relate to district
heating. Compared to our 2021 baseline, we have
achieved a total reduction of 61% in our combined Scope
1 and 2 market-based emissions, facilitated by strategic
renewable energy procurement. We believe this puts us
on-track of our 2032 SBTi approved short-term target,
to reduce Scope 1+2 emissions by 50%.
The most significant change occurred in Scope 3
emissions, where we saw an overall absolute decrease
of 30% year-over-year, which represents 99% of our
total GHG emission reduction in 2024. The primary driver
behind this reduction was Scope 3.11, which accounts
for the use-phase emissions of our products and
represents 70% of our total Scope 3 emissions footprint.
This decrease was driven by a favorable product sales
mix, with increased adoption of our ALD tools, which
have a relatively higher energy-efficiency compared with
other deposition technologies, driven by strong demand
by logic foundry and DRAM customers. Simultaneously,
ASM saw a declining demand in power analog wafers
due to cyclical corrections. Furthermore, our Scope 3
intensity, measured as GHG emissions per EUR of value
added (gross profits), showed a reduction of 40% year-
over-year and 41% against our 2021 base year. We
consider it likely that future results will show increases in
emissions due to shifts in market demand, as mix will be
a strong contributor. For more details on the activities
that ASM undertakes to reduce its emissions across its
product technologies, see section 16.3 'Product
sustainability' of this report.
We confirm that we are not excluded from the EU Paris-
aligned benchmarks based on the stated exclusion
criteria. We also do not invest in coal, oil, and gas-
related activities. This ensures our strategies align with
the rigorous environmental standards required to
support the Paris Agreement goals.
Through innovation, strategic sourcing, and collaboration
with customers and suppliers, we aim to drive
meaningful progress toward a lower-carbon future. Our
approach to emissions management aims to ensure ASM
remains at the forefront of sustainable practices, setting
an industry benchmark for corporate environmental
responsibility.
Looking ahead
To maintain our trajectory towards net-zero, we are
continuously exploring new innovations and efficiency
strategies. Our investment in research and development
focuses on next-generation semiconductor
manufacturing technologies that further reduce power
consumption.
The successful implementation of our decarbonization
actions depends on ongoing resource availability and
allocation. For 2025, our planned amount for capex and
opex investments is €6 million.
A key element of transitioning to net zero is increasing
the share of our revenue that comes from products or
services with less embodied carbon and lower carbon-
intensities. We do not currently use a taxonomy to
classify our products or services as low-carbon but will
continue to assess opportunities for this in the future.
As we continue to drive our climate transition, achieving
our ambitious targets cannot be accomplished in
isolation. Our success depends on active collaboration
and engagement across the entire value chain – from
suppliers to customers and all stakeholders in-between.
Only through collective effort and shared commitment
can we build a more sustainable future and achieve the
full potential of our CTP.
We also analyze potential locked-in GHG emissions from
our key assets (stationary and mobile installations) and
products to ensure our decarbonization plan remains
achievable and aligned with our targets. Various assets
were identified as potential risks to our decarbonization
roadmap. However, these assets have lifecycles that are
aligned with our objectives up to 2032 and 2035. In line
with our net-zero target, we are advancing strategies to
transform or decommission these assets to mitigate their
impact.
Furthermore, our products’ emissions are calculated at
the point of sale, reflecting their current estimated
impact over their significant lifetime duration. Despite
this mitigating our own risk of locked-in emissions from
our product sales, ASM remains committed to enabling
our customers to enhance energy efficiency across the
lifecycle of our installed base.
To support this, we aim to provide access to efficiency
breakthroughs through retrofit kits. These kits provide an
upgrade pathway for existing equipment, integrating the
newest energy-efficient components and process
optimizations without requiring full system replacements.
By leveraging retrofit solutions, we help customers lower
their operational emissions, reduce energy consumption,
and extend the longevity of our tools.
This approach aligns with ASM's commitment to
sustainability while also supporting our customers in
achieving their own resource efficiency and
environmental goals. Through continuous innovation and
collaboration, we reinforce our role in driving
sustainability across the semiconductor industry.
Combining this approach with our strategies towards
producing more energy-efficient products and engaging
customers on renewable energy use, we mitigate the risk
of locked-in emissions related to our products.
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Strategy and performance
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Leadership and governance
Financial statements
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66
Our 2024 greenhouse gas (GHG) emission results
GHG intensity***
2023
2024
%
Total GHG emissions (location-
based) per net revenue
(kilotonnes CO2e /€ thousand)
1.01
0.64 (37) %
Total GHG emissions (market-
based) per net revenue
(kilotonnes CO2e /€ thousand)
1.00
0.63 (37) %
Total Gross Scope 3 GHG
emissions per gross profit
(kilotonnes CO2e /€ thousand)
2.07
1.24 (40) %
***Revenue and gross profit figures derived from the respective lines
of the Consolidated statement of profit and loss in section 28.1.
Biogenic emissions of CO2 from
combustion or bio-degradation of biomass
not included in Scope 2 GHG emissions
(kilotonnes CO2e)
4.8
Biogenic emissions of CO2 from
combustion or bio-degradation of biomass
that occur in value chain not included in
Scope 3 GHG emissions (kilotonnes CO2e)
0
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Strategy and performance
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
67
2023/2024 results
Our targets
Base year
(2021)
2023
2024
year-over-
year %
2030
2032
2035
Scope 1
GHG emissions
Gross Scope 1 GHG emissions (kilotonnes CO2e)
1.3
2.4
2.5
2 %
41.2%*
50.4%*
90%*
Percentage of Scope 1 GHG emissions from regulated emission trading
schemes (%)
-
-
-
n/a
Scope 2
GHG emissions
Gross location-based Scope 2 GHG emissions (kilotonnes CO2e)
24.3
32.8
33.0
1 %
Gross market-based Scope 2 GHG emissions (kilotonnes CO2e)
8.4
5.4
1.3
(75) %
Scope 3
GHG emissions
Total Gross indirect (Scope 3) GHG emissions (kilotonnes CO2e)
1,728.7
2,630.5
1,839.9
(30) %
47.6%**
58.2%**
97%**
1 Purchased goods and services
311.0
429.7
388.5
(10) %
2 Capital goods
17.0
34.8
34.5
(1) %
3 Fuel and energy-related activities (not included in Scope 1 or Scope 2)
4.9
5.6
5.8
2 %
4 Upstream transportation and distribution
20.4
18.4
23.3
26 %
5 Waste generated in operations
0.3
0.5
0.5
18 %
6 Business travel
7.4
17.6
30.4
72 %
7 Employee commuting
8.8
10.0
12.8
28 %
8 Upstream leased assets
0.2
0.4
0.3
(19) %
9 Downstream transportation
14.3
61.8
38.6
(37) %
10 Processing of sold products
n/a
n/a
n/a
n/a
11 Use of sold products
1,321.1
2,038.2
1,291.9
(37) %
12 End-of-life treatment of sold products
1.3
1.6
1.5
(11) %
13 Downstream leased assets
n/a
n/a
n/a
n/a
14 Franchises
n/a
n/a
n/a
n/a
15 Investments
21.9
11.8
11.8
— %
Total
GHG emissions
Total GHG emissions (location-based) (kilotonnes CO2e)
1,754.4
2,665.7
1,875.4
(30) %
Total GHG emissions (market-based) (kilotonnes CO2e)
1,738.5
2,638.4
1,843.7
(30) %
*reduction target in percentage of Scope 1&2 market-based emission
**reduction target per EUR of value added (gross profit)
16.3 Product sustainability
Our most significant GHG emission impact comes from
the products that we deliver to our customers. Our
technologies enable advanced and more energy-
efficient computing, which is integral to reducing energy
consumption across various industries. From powering
data centers to enhancing electric vehicles and
renewable energy systems, our solutions can play an
important role in supporting and enabling sustainable
development.
ASM’s approach to product innovation is founded on a
deep understanding that our technologies must be
designed not only to push the limits of technical
performance and cost of ownership, but also to
integrate eco-design principles in the operation of our
tools to allow for more efficient production of the chips
themselves. In line with this, we have set clear
sustainability targets across our product portfolio,
focusing on reducing chemical usage and enhancing
energy efficiency of our systems and processes.
Our 2035 product sustainability targets include:
• 35% reduction in precursor consumption per wafer in
key atomic layer deposition (ALD) processes,
optimizing chemical usage to reduce waste and
emissions;
• 35% reduction in thermal energy per wafer for
thermally-driven products such as epitaxy (Epi) and
vertical furnaces (VF); and
• 20% reduction in RF energy per wafer for plasma-
driven products like PECVD and PEALD.
These targets are critical to our climate strategy as they
directly support our ambition to reduce the carbon
footprint of our customers.
Product sustainability targets
Chemical
consumption
& usage
• 90% reduction* by 2035 of NF3 usage
in key cleaning processes through
replacement of NF3 with alternative
gases (F2, HF, etc.).
• 35% reduction* by 2035 of precursor
consumption per wafer for key ALD
processes.
Energy and
resource
efficiency
• 35% reduction* by 2035 in thermal
energy per wafer for thermally driven
products such as Epi & Vertical
Furnaces.
• 20% reduction* by 2035 in RF energy
per wafer for plasma-driven products
such as PECVD & PEALD.
Customer
collaboration
1
• Drive multiple sustainability initiatives
addressing customer fab-wide
sustainability focus.
• Work with customers and suppliers to
phase out materials containing PFAS or
PIP (3:1).
• Number of active engagements with
customers to align on technology
roadmap and product sustainability
development.
Design for
Sustainability
principal 1
• Develop Design for Sustainability (DfS)
simulation tool to simulate equivalent
energy consumption during design
phase.
• Baseline and track product
sustainability performance year-over-
year. In 2023 and 2024, ASM baselined
over 18 applications.
1 'Customer collaboration' and 'Design for Sustainability
principal' are quantitative and qualitative targets. The
remaining targets are quantitative.
* Against a 2023 baseline
Target
Description of impact
To realize these targets, ASM has embedded
sustainability at the core of its research and
development processes. Through the use of
sustainability simulation tools, we can model the energy
and resource impacts of new products during the design
phase, allowing us to make informed decisions that
enhance sustainability without compromising
performance. To further quantify the energy use of our
products and the corresponding GHG footprint, 18 SEMI
S23 or comparable assessments were also completed
on ASM products across our portfolio in 2023 and 2024.
In addition, our advancements in ALD gate dielectrics
and novel work function metals have contributed to a
thousand-fold reduction in gate leakage current. The
precise film conformality of ALD has also been
instrumental in transitioning from planar to FinFET
semiconductor device structures, which are more
power-efficient.
The role of ALD and Epi processes will only become
more critical as the industry is currently preparing to
transition from FinFET to gate-all-around (GAA)
nanosheet transistors, promising a further reduction in
power usage. Similarly, transitioning DRAM periphery to
high-k dielectric and metal gate technologies can lower
power consumption in both dynamic and static states, as
previously seen in logic devices. These next-generation
devices are expected to play an important role in
offering improved performance and reduced power
consumption in for instance AI and data-center
applications.
Another important technology that ASM is enabling is
silicon carbide (SiC) epitaxy, which is supporting the
growing electrification of the automotive industry.
Vehicle power electronics are transitioning from silicon
to SiC-based materials, because SiC devices allow for
higher voltage and power handling, which enable more
efficient electric vehicles with longer battery life, greater
driving range, and faster charging times. Our SiC tools
use an epitaxy process to deposit the SiC materials as
part of the transistor device fabrication process. SiC is
highly efficient at high voltages, offering higher power
efficiency; increased power density, which results in
reduced component weight and size; and faster battery-
charging times.
An example of a product sustainability innovation is our
Turino™-CL technology, representing an important
development in epitaxy technology. As the first closed-
loop direct-wafer temperature measurement system, it
directly measures wafer temperature with pyrometers
across the wafer, including at the edge. This
functionality helps ensure higher uniformity and
monolayer-level thickness control, critical for advanced
applications like GAA nanosheet transistors.
This innovation supports cutting-edge transistor
architectures like GAA, which enable smaller, more
energy-efficient chips with reduced power leakage and
improved performance in a wide range of applications.
The tool’s ability to align advanced node production with
precision that leads to resource efficiency underscores
our ambition to embed sustainability within technological
innovation.
A second example is our GenMatch™ technology, that
supports RF energy in plasma-enhanced products for
semiconductor manufacturing. Developed through ASM's
Reno Sub-Systems, it enhances energy efficiency and
process control through the use of an Electronic Variable
Capacitor (EVC), offering superior RF performance
compared to traditional methods. Through EVC,
GenMatch™ enables the plasma state to be reached
more efficiently, which in turn activates precursor
materials with greater effectiveness, facilitating high-
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quality film deposition at lower temperatures. As a result,
it reduces energy waste by up to 5% on a per wafer
basis, which is a significant improvement for high-power
plasma operations.
The plasma enhancement in deposition technology
ensures greater precision in layer formation, leading to
uniform film deposition on complex 3D structures.
GenMatch™ supports a wide range of plasma-based
processes, including Plasma Enhanced Atomic Layer
Deposition (PEALD) and Plasma Enhanced Chemical
Vapor Deposition (PECVD), making it effective for
tackling deposition challenges such as high-aspect ratio
gap-fill applications. Moreover, the system’s precision
enables better process consistency, reducing variability
and thereby reducing defects. Similar to the Turino™-CL,
this means that there are less downstream steps
required for chip production, saving additional energy
from an end-to-end perspective.
GenMatch™ is another example of ASM's vision for
sustainable innovation by combining advanced
technology with environmental stewardship. It directly
contributes to lower greenhouse gas emissions in
semiconductor manufacturing. GenMatch™ thereby
enables ASM and its customers to address the dual
priorities of scaling production while lowering the
environmental impact, ensuring readiness for future
industry demands.
Sustainable Innovation IP
ASM's Intellectual Property (IP) strategy is designed to
foster innovation, support environmental sustainability,
and enhance resource efficiency. We focus on the
development of innovation that drives technological
advancements and aligns with our sustainability
priorities.
To accelerate our efforts, we established a dedicated,
cross-functional committee for sustainability-related IP.
ASM follows a well-defined strategy to expand our
sustainability-focused patent portfolio in four critical
areas: 1) throughput and uptime improvement, 2)
chemical usage and selection, 3) abatement technology,
and 4) energy efficiency.
Our commitment to sustainability-focussed IP
management drives our efforts to tackle global
environmental issues, ensuring long-term value for our
stakeholders and strengthening ASM’s position in this
vital area.
Other actions taken in 2024:
As a vital area to reduce emissions associated with our
products, we must collaborate across the industry to
decarbonize customer use of our products. ASM is
dependent on our customers' ability to decarbonize their
operations for our Scope 3.11 target to be realized. For
this purpose, ASM continues to play an active role in the
Semiconductor Climate Consortium, which unites the
industry on a path towards decarbonization. We also
presented at several customer sustainability summits to
better collaborate with our entire value chain on climate
action and sharing of learnings.
16.4 Own operations
To meet our decarbonization goals and address energy
scarcity, we are implementing several key strategies in
our own operations, including energy-efficiency
improvements at owned and operated facilities,
electrifying our systems, switching to low-carbon fuels,
procuring renewable energy, and implementing on-site
renewable energy generators. We are also working to
reduce and eventually replace non-electric greenhouse
gas fuels in our operations.
Renewable electricity
As of 2024, we have achieved 100% renewable
electricity usage across our operations, supported by
high-quality unbundled Energy Attribute Certificates
(EACs), green tariffs, and green premiums.
Our EACs serve as important financial incentives to
renewable energy projects, enabling the expansion of
renewable energy projects globally and thereby resulting
in accelerated additionality. By supporting a range of
renewable energy sources through our EAC purchases,
we aid broad innovation and technological advancement
in the renewable energy sector.
Moreover, we seek premium label certificates such as
Green-e and EKOenergy, ensuring our investments
positively influence regional clean-energy developments.
In combination with other sustainability measures, EACs
reinforce our support for the broader shift toward
cleaner grids and contribute to the collective growth of
the renewable energy landscape.
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Product sustainability strategy
Energy efficient plasma sources
Smarter use of chemicals
Advanced thermal technologies
What they are:
Plasma sources use radio
frequency (RF) energy to ionize
gas, supporting deposition with
higher control and at lower
temperatures.
Chemicals (precursors) are
deposited onto wafers to create
thin-films. The efficient use of
precursors is critical to a
sustainable deposition process.
Heating technologies are used to
disperse precursors uniformly and
at the right temperature during
deposition processes.
Why it matters:
RF energy is used in high quantity,
efficiencies can significantly
reduce energy per wafer, thereby
making the layering process more
sustainable.
Optimizing chemical use can
reduce unnecessary waste and
abatement, reducing both
environmentally taxing resources
and emissions.
As heating is a big source of
energy consumption in deposition
and epitaxy processes, heating
efficiency lowers costs and helps
reach sustainability goals.
Our approach:
We developed RF power delivery
technologies that minimize RF
energy loss and speed up the
plasma process, realizing lower
energy requirements.
We use chemicals more efficiently.
Through process innovations, our
technology reduces precursor
consumption and lowers
abatement load.
We developed temperature control
innovations that reduce the energy
required to reach the desired
temperatures for deposition,
thereby increasing efficiency.
All our renewable electricity purchases follow the
stringent RE100 technical procurement criteria, ensuring:
• 100% in-market purchases;
• Recent commissioning;
• Vintage limitations to electricity generation; and
• Exclusive ownership and attribution
These are all aimed at ensuring validity and reducing the
chances of double counting.
Electricity from renewable sources (in %)
In December 2023, we installed our first on-site solar
power system at our Singapore facility. This installation
marked a key step in our transition to renewable energy,
and we achieved full production capacity in 2024.
Source of renewable electricity certificates
Source of renewable electricity
certificates* in percentage of total
2023
2024
Renewable electricity from bundled
Energy Attribute Certificates (EACs)
4 %
3 %
Renewable electricity from unbundled
Energy Attribute Certificates (EACs)
96 %
97 %
*Bundled EACs are certificates directly linked to electricity that
is purchased from a specific renewable energy source, while
unbundled EACs are sold independently from the physical
electricity and can be acquired to support renewable energy
claims.
Looking ahead, we aim to further diversify our renewable
energy approach by entering into long-term virtual
power-purchase agreements (vPPAs) through
consortium partnerships, given that we are unable to
reach required volumes as an individual company in
market regions where we operate. At this point, ASM is
active in two separate consortia initiatives, which aim to
realize additional renewable energy projects to be
brought to the grid. Furthermore, ASM strives for all of
its future construction projects to meet high LEED
certification standards, integrating sustainability and
decarbonization elements into the design from the
outset. This includes, where possible, the on-site
generation of electricity. Combined, these measures will
further strengthen the resilience and sustainability of our
overall energy portfolio.
Energy management and efficiency
Following the energy efficiency audits conducted in
2023, we developed a comprehensive energy efficiency
and conservation program to further decarbonize our
operations. This plan has led to numerous projects that
improve energy efficiency and reduce CO2 emissions
across our facilities.
In 2024, we have allocated operational expenditure of
€6 million towards our decarbonization initiatives,
including renewable energy and energy efficiency
measures.
Energy consumption and mix - fossil
2023
2024
(1) Fuel consumption from coal
and coal products (MWh)
-
(2) Fuel consumption from crude
oil and petroleum products
(MWh)
2,756
2,035
(3) Fuel consumption from natural
gas (MWh)
6,698
8,072
(4) Fuel consumption from other
fossil sources (MWh)
-
(5) Consumption of purchased or
acquired electricity, heat, steam,
and cooling from fossil sources
(MWh)
10,565
3,261
(6) Total fossil energy
consumption (MWh) (calculated
as the sum of lines 1 to 5)
20,019
13,368
Share of fossil sources in total
energy consumption (%)
23
14
Energy consumption and mix - nuclear and renewable
2023
2024
(7) Consumption from nuclear
sources (MWh)
2,653
-
Share of consumption from
nuclear sources in total energy
consumption (%)
3
-
(8) Fuel consumption for
renewable sources, including
biomass (also comprising
industrial and municipal waste of
biologic origin, biogas, renewable
hydrogen, etc.) (MWh)
-
-
(9) Consumption of purchased or
acquired electricity, heat, steam,
and cooling from renewable
sources (MWh)
66,412
81,651
(10) The consumption of self-
generated non-fuel renewable
energy (MWh)
4
543
(11) Total renewable energy
consumption (MWh) (calculated
as the sum of lines 8 to 10)
66,416
82,194
Share of renewable sources in
total energy consumption (%)
75
86
Total energy consumption (MWh)
(calculated as the sum of lines 6,
7, and 11)
89,088
95,562
One notable project in our decarbonization efforts is the
implementation of our new Leak Detection Program.
Compressed air systems are essential for our
manufacturing and engineering processes, but leaks in
these systems can be a significant source of energy
waste. By using advanced monitoring technologies, we
can now detect leaks in real time, quantify energy
savings, and calculate the corresponding CO2 emission
reductions. This program has improved our operational
reliability by reducing unplanned downtime, contributing
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10
73
73
88
100
2020
2021
2022
2023
2024
to our emissions-reduction targets. Additionally, we have
initiated a pilot program to test high-performance GHG
abatement units, aiming to maximize emissions reduction
while avoiding the use of fossil fuels, so allowing for
alternative energy abatement.
Energy intensity per net revenue
2023
2024
Total energy consumption from
activities in high climate impact
sectors per net revenue from
activities in high climate impact
sectors (MWh/€ thousand)
33.8
32.6
*All ASM activities are in scope of high climate-impact sectors.
We have also invested in environmental software
solutions to facilitate, automate, and streamline our
environmental data reporting, including comprehensive
GHG emissions calculations, ensuring accurate tracking
and assurance of our environmental data.
Overall, our energy efficiency and conservation
initiatives, together with our renewable energy
purchases, have resulted in a year-on-year reduction of
75% in CO2 equivalent emissions. These achievements
underscore our ambition to reach net zero by 2035 and
demonstrate ASM's continued efforts to minimize our
environmental footprint while optimizing operational
performance.
ASM has set an energy efficiency and renewable
electricity generation target for 2025 equivalent to 0.5%
of 2024 electricity consumption. This target aligns with
ASM’s sustainability strategy and SBTi pathway.
The target is based on 2024 electricity usage and a
pipeline of identified efficiency projects. Estimated
savings are derived from vendor quotes and engineering
assessments. While project completion is what
determines our target realization, ASM is actively
pursuing their implementation and aims for the savings
to be realized upon completion. These estimates
represent best available science-based assumptions.
ASM’s environmental team and site facilities collaborated
to develop this target, ensuring an integrated approach.
ASM will track and validate each project’s impact,
monitoring key metrics such as cost, expected savings,
and environmental benefits. Progress will be reviewed to
ensure alignment with sustainability commitments and
disclosure obligations.
16.5 Supply chain emissions
A significant portion of ASM’s Scope 3 greenhouse gas
emissions comes from our supply chain. As a result, we
have adopted a multi-pronged approach to
decarbonizing our supply chain. Our strategy focuses on
two key areas: 1) engaging our suppliers to increase
transparency and reduce their emissions, and 2)
optimizing materials usage and processes that inherently
lower or avoid emissions in the supply chain
Supplier climate action
2023
2024
% of critical/strategic suppliers
reporting Scope 1 & 2
emissions
61%
67%
% of critical/strategic suppliers
with GHG reduction targets
(Scope 1 & 2, 2030 1.5⁰ SBTi
aligned)
N/A
21%
Engaging and educating suppliers to
decarbonize
Building on the foundation set in 2022, when we first
joined the CDP supply-chain program, we have
continued to engage our critical and strategic suppliers
to complete the CDP climate change disclosure annually.
By 2024, 96% of our critical suppliers submitted their
disclosures, which was an improvement from the 88%
participation rate in 2023.
Despite this progress, data gaps persist. A review of the
2024 CDP climate questionnaires revealed that 33% of
our critical and strategic suppliers still lack the ability to
disclose both their Scope 1 and Scope 2 emissions
(2023: 39%). ASM plans to continue to close these gaps
through targeted engagement and tailored support,
aiming to improve reporting quality and transparency
across the supply chain in the coming years.
One key outcome of this enhanced supplier engagement
is the growing awareness of the importance of
renewable electricity access. As suppliers recognize the
need for cleaner energy sources, ASM has been at the
forefront of collaborative efforts to support them.
Through our continued co-sponsorship of the Catalyze
program, we are helping our suppliers gain access to
renewable electricity options.
ASM is also encouraging supplier participation in industry
initiatives like the Semiconductor Climate Consortium,
fostering deeper collaboration and shared responsibility
in driving sustainable progress throughout the
semiconductor supply chain.
Avoiding emissions through materials savings
Next to a reduction in costs for our customers in
operating the tool, our Complete Kit Management (CKM)
program strategically focuses on materials conservation,
which prevents emissions throughout our supply chain.
CKM offers an outcome-driven service to our customers
that reduces the necessity for new materials through the
systematic repair, refurbishment, and reuse of tool parts.
By extending the functional lifecycle of durable tool
parts, CKM achieves a notable reduction in emissions
related to raw material extraction, processing, and
transportation. Refer to section 12.3 'Product
development' for more information on the CKM program.
In 2024, the CKM initiative further matured, enhancing
its efficacy in mitigating supply-chain emissions. We
expanded our internal refurbishment capabilities and
identified additional components within our bill of
materials that could be incorporated into the component
refurbishment program. Through these efforts, the
overall demand for new parts in existing tools continues
to reduce through CKM services. The growing adoption
of multi-year CKM contracts underscores its value, not
only in maximizing operational efficacy but also in
quantifiable reductions in supply-chain emissions.
Avoided supply chain emissions from materials savings
Year
Avoided GHG emissions per year through CKM
materials savings (tonnes CO2e)
2020
81
2021
916
2022
1,807
2023
2,127
2024
2,592
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Catalyze
Increasing renewable energy use across
our entire value chain
ASM is a founding sponsor of Catalyze,
alongside Intel, Applied Materials, Google,
and HP.
Established in 2023, Catalyze is a pioneering initiative
designed to drive the widespread adoption of renewable
electricity across our global value chain.
Catalyze is poised to enhance the global availability of
renewable electricity by accelerating the deployment of
renewable projects through collaborative long-term
sourcing agreements. The program also facilitates
the pooling of energy needs, offering market access to
companies without the capacity to engage in utility-scale
power purchase agreements (PPAs).
With a strong focus on regions where ASM’s suppliers
operate, Catalyze is tied directly to our sustainability
roadmap to reduce emissions across key production
nodes. The long-term ambition is to extend the reach
globally, aligning with renewable-energy market
opportunities.
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The Catalyze program
Amplifies collective impact: By consolidating energy
purchasing power throughout the semiconductor
value chain, Catalyze accelerates the
implementation of renewable energy projects.
Encourages inclusive supplier participation:
Recognizing that some suppliers may lack individual
capacity, Catalyze offers them an opportunity to
engage in the market for utility-scale power
purchase agreements (PPAs).
Strives for universal accessibility: Open to any
company within the semiconductor landscape that
supplies to a Catalyze sponsor, the program
promotes universal accessibility.
Delivers education and digital initiatives: At ASM we
also use Catalyze as an educational tool to
encourage measurable actions in supply chain
decarbonization, furthering the industry’s
knowledge and dedication to sustainability and
climate resilience.
“Catalyze represents a collective step
towards a more sustainable future,
exemplifying industry leadership in the
pursuit of renewable energy.”
Staci Curtis
Director Supply Chain Responsibility
17. People
At ASM, we strive to be a home for talent in the
semiconductor industry. We aspire to not only be
a great place to work but also a great place to
grow. Our focus on 'Best People' is a core enabler
of our Growth through Innovation strategy. We
believe our workforce drives customer success
by creating leading-edge semiconductor
processes, products, and services that advance
technology and improve people's lives. In 2024,
we built on these foundations to strengthen our
company culture and engage our people.
17.1 People practices
Engaging our people
Following our pulse survey in 2023, we launched a full
engagement survey in 2024 with an expanded scope.
Led by our Chief People Officer, this survey focused on
employee experience and perceptions in areas crucial
for our continued success: our values, ACE behaviors
(Accountability, Collaboration & Empowerment), and
inclusion. We also refreshed the Inclusion Index and
introduced a new Manager Index, which emphasizes the
impact of managers on team engagement.
Our September 2024 survey achieved our highest-ever
participation rate of 95%, surpassing all five previous
surveys. This indicates that an increasing number of
employees are willing to share their voice and see this
survey as a relevant tool.
In addition to annual surveys, we engage our employees
through multiple channels, including quarterly global
town-hall meetings with senior leadership, employee
resource groups, and development dialogues. Our
SpeakUp! program provides a confidential mechanism
for reporting concerns about business conduct and
human-rights violations, ensuring a safe and responsive
platform for all our employees. Refer to section 19.2
'Ethics, Bribery, and Corruption' for more information on
our whistleblower channel and raised concerns.
Our 2024 engagement survey results
In another year of organizational growth and change,
most engagement drivers remained stable, with positive
improvements in areas such as total rewards, learning &
development, and focus on excellence. As part of the
deployment, managers were asked to discuss survey
results with their respective teams, identify improvement
areas, and develop action plans to strengthen ASM's
working environment.
As one of the follow-up actions of our engagement
survey, we aim to prioritize well-being more strongly, to
support our ambition of building a high-performing and
sustainable workforce that drives business success and
fuels future growth. We aim to also cultivate more space
for experimentation and learning from successes and
mistakes. And lastly, to accelerate our journey to
excellence, we strive to role model collaboration across
our organization to foster a culture of shared success.
Talent attraction and retention
Our refreshed employer brand – 'Ahead of what's next' –
aims to capture our commitment to enhance employee
engagement, foster employee growth and development,
and cultivate a diverse and inclusive culture. This
strengthens employee engagement, promotes
collaboration and empowerment, and delivers greater value
to our customers, setting us apart from the competition.
Attracting and retaining our talent remains a critical
focus for ASM as we expand and fortify our organization
in alignment with our Growth through Innovation
strategy. In 2024, we successfully integrated 588 new
hires globally, increasing our overall headcount to 4,558.
Despite the challenges posed by a competitive global
labor market, we achieved a strategic expansion of our
R&D workforce, which constituted 25% of our total
headcount per the end of 2024.
Our initiatives to drive this growth have included
targeted employer-branding campaigns, strategic
engagement through social media platforms, and the
further refinement of our career page, which is fully
integrated with our corporate website, and designed to
elevate the candidate experience. Additionally, we have
maintained our investments in early-talent programs and
cultivated our partnerships with industry associations to
nurture the forthcoming generation of semiconductor
specialists.
In parallel with recruitment efforts, reducing attrition
remains an ongoing priority. In 2024, 527 employees left
the organization. At 6.8% in 2024, our voluntary attrition
rate remained consistent with 2023 (6.6%). The increase
in involuntary turnover in 2024 reflects a strategic
organizational re-design to reduce organizational
complexity and optimize layers and spans of control.
This enabled faster communication as well as an
enhanced leadership capability. These actions are
aligned with our people transformation plan and support
our ongoing commitment to operational excellence. We
are committed to continuously reviewing and refining our
total rewards strategy globally to ensure that our
remuneration frameworks are competitive and
compelling for current employees and prospective talent.
Employee turnover in percentages
Employee turnover (%)
2023
2024
Voluntary
6.6%
6.8%
Involuntary
2.6%
4.8%
Total attrition
9.2%
11.6%
Our Global Employment Standards
Our organizational commitment is formalized through the
Global Employment Standards (GES) and our Human
Rights policy, which define ASM's approach to upholding
human rights and labor standards throughout our global
operations. Both policy documents are publicly available
to all employees and encompass our key principles such
as equitable compensation for work of equal value,
adherence to working time regulations, the elimination of
forced labor, and the prohibition of workplace
discrimination. We make sure these standards are
upheld through onboarding training and periodic
refresher sessions, cultivating a deep understanding
among our employees of their rights and responsibilities.
Our Global Employment Standards and Human Rights
policy align with international frameworks, including the
United Nations Guiding Principles (UNGP) on Business
and Human Rights, the International Labor Organization’s
(ILO) conventions, and the Responsible Business Alliance
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(RBA) Code of Conduct. These frameworks inform our
practices on several critical dimensions:
• The explicit prohibition of forced or involuntary labor,
including human trafficking, and payment of any
recruitment fees;
• Doing our most to achieve a workplace devoid of
discrimination or harassment predicated on race,
gender, sexual orientation, national origin, disability,
age, or other characteristics, including equal rights
and opportunities, including remuneration and
promotion of employees based on individual merit,
results, potential, skills, and experience;
• Prohibition of child labor, with global policies to
prevent employment for individuals under the age of
18;
• Cultivating a workplace free of corporal punishment,
coercion, threats, or harassment; and
• Compliance with all applicable wage and hour
legislation, including regulations related to minimum
wages, overtime, and collective bargaining.
In keeping with the tenets of our Global Employment
Standards, ASM strives for all employees globally to be
compensated with an adequate wage that meets or
exceeds the requirements for a decent living standard.
Our 2024 assessment was in line with applicable
benchmarks, including the Anker methodology, for which
we utilized data from Wageindicator. The results showed
that an adequate wage and living wage was paid to
100% of our employees globally.
Our rewards philosophy is centered on recognizing the
value that each individual brings to the organization, and
ensuring fair and competitive compensation that reflects
local market conditions, employee skills, experience, and
performance. We are committed to a holistic rewards
strategy that encompasses not only base pay, but also
performance-related incentives, comprehensive
benefits, and opportunities for professional growth. This
approach underscores our commitment to the well-being
of our workforce, enabling them and their families to
meet essential needs while also supporting long-term
career development within ASM.
Our CEO pay ratio in 2024 was 35.
Human rights due diligence
Human rights due diligence is central to our ethical
approach to business operations. Our due diligence
protocols involve a systematic periodic review of the risk
mapping of potential issues, also in case of mergers and
acquisitions. For our operations, this starts with validated
annual assessments for all manufacturing and R&D sites,
identifying potential risks associated with human rights
and labor practices. Where risks are identified, we
implement comprehensive audits and corrective
measures without delay. In 2024, these assessments
indicated a low-risk profile across all ASM sites, with no
reported violations of human-rights standards. A deep-
dive audit at our manufacturing location in Singapore in
August 2024 identified several opportunities to
strengthen the site's approach to preventing human
rights risks. The site has a mitigation plan in place, which
is aimed for completion in early 2025. Our other sites do
not have required mitigation plans in place. Our
commitment to sound labor practices remains
paramount, and we continuously strive to enhance our
due-diligence processes to safeguard the well-being of
our workforce in accordance with international
benchmarks.
As per our Human Rights policy, in cases where it has
been identified that ASM caused or contributed to an
adverse human-rights impact, we aim to provide for, or
to cooperate in, appropriate remediation. We will also
take action to prevent future harm through learning from
this process and by taking steps to mitigate future
impacts.
ASM's 5-step approach to human-rights due diligence
Step 1
Set policies to govern the most important human-rights
topics for our organization.
Step 2
Assess ASM’s human-rights risks and impacts at minimum
on an annual basis.
Step 3
Employ various tools to gather insights from our
employees and other stakeholders.
Step 4
Where applicable, stop, prevent, and/or remediate
negative impacts caused by our organization.
Step 5
Track our improvement steps in response to risks
identified, and communicate our progress.
17.2 Diversity, equity, and inclusion
Inclusion as a foundation
At ASM, we are committed to building an inclusive
culture where all colleagues contribute to driving strong
business results, while bringing their best to ASM - a
place where everyone is valued and treated with
respect. We are convinced this will help us enhance
problem-solving, increase innovation, and create
excellence as a standard. We also believe in meritocracy
when making hiring, performance, or promotion
decisions.
Our clear expectations of people managers and
individual contributors define high standards, and our
values and behaviors aren’t just words – they’re our
playbook for success. One of our key priorities in our
people transformation strategy is to strengthen ASM's
culture to drive business growth. Embracing diversity,
equity, and inclusion is what sets us apart, ensuring
every individual feels respected, valued, and empowered
to contribute meaningfully.
The ASM Diversity, Equity, and Inclusion (DE&I) policy,
launched in February 2024 as a replacement to our
previous diversity policy, captures our commitment to
treating every employee with respect and dignity. We
strive for a workplace free from discrimination, based on
race, color, ethnicity, national origin, social origin, sex,
gender identity or expression, sexual orientation,
religion, age, health status, pregnancy, neurodiversity,
physical or mental disability, or political affiliation.
Harassment, bullying, abuse, or threats of any kind are
not tolerated. This policy underlines our ambition to
foster an environment in which everyone can work
without fear and thrive.
In 2024, we advanced our DEI multi-year strategic
roadmap by expanding on our reskilling and upskilling
initiatives. We aim to continue our reskilling and upskiling
in 2025, amongst others with targeted training for our
talent acquisition team, People Partners and People
managers
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Our global unconscious bias and psychological safety
training engaged over 1,000 employees in 2024,
fostering a more aware and empathetic culture. These
topics were also a focus in our LEAD Ahead program to
increase manager excellence. Through these initiatives,
we aim to ensure every employee feels respected,
valued, and equipped to contribute to ASM’s goals.
In 2024, we expanded the reach and impact of the ASM
Women's Initiative Network (WIN), which connects many
employees across our regions. WIN initiatives are
designed to support female talent, foster leadership,
allyship, and drive gender inclusivity in the workplace.
Highlights from 2024 included skill-building workshops,
networking events, and family days. These initiatives
contribute to building a sense of community and
belonging.
Beyond WIN, our Employee Resource Groups (ERGs)
continue to be vital in creating an inclusive culture
focused on connection, belonging and allyship. These
voluntary groups, initiated and led by employees,
currently include WIN, SHADES, the Sustainability
Ambassador Network, and We Care, with plans to
expand based on the interests of our ASM employees.
These ERGs are integral to promoting a workplace that
recognizes and embraces the diverse experiences and
perspectives of our employees. To our leadership, they
also provide insight into the perspectives of employee
groups who may be more vulnerable or marginalized.
Equal pay
We strive to provide equitable opportunities for all our
employees while ensuring advancement and recognition
are based on individual merit and performance. Our DEI
initiatives are integrated into core people processes,
including recruitment, performance reviews, promotions,
and compensation. We have developed a global DEI
framework that guides local initiatives and informs our
global action plans.
In 2024, we implemented several actions to promote
equity, including 'hiring manager interview training'
across Asia, the US, and Europe, to minimize
unconscious bias in the recruitment process. We also
launched a referral program aligned with International
Women's Day and International Women in Engineering
Day to attract female talent. To further our commitment
to equity, members of the Executive Committee have
been mentoring female talents, focusing on professional
growth and career development. In 2024, we expanded
these efforts by designing a leadership acceleration
program for women, aimed at expediting their readiness
for leadership roles at ASM.
In our pursuit of equity, ASM continuously assesses the
gender-pay ratio across all levels, ensuring fairness in
our remuneration practices. Our gender-pay review is a
formal part of our annual performance evaluation,
providing transparency and accountability in
compensation and promotion processes.
Equal remuneration results
2023
2024
Gender pay gap - average
0.98
0.98
Gender pay gap - median
0.98
0.97
Diversity in perspectives
We have witnessed progress in the representation of
diverse nationalities within ASM, growing from 66
nationalities in 2023 to 69 in 2024. As a global company
operating in 15 key locations, we are committed to
increasing diversity across all levels of our organization.
To drive gender diversity, we focus on three segments:
the Supervisory and Management Boards, Sub board
(287 employees, 6% of total)), and All employees. For our
Supervisory and Management Boards, our DE&I policy
aims for no single gender to hold more than two-thirds
of seats. Per the end of 2024, our Supervisory Board
achieved 43% (3/7) female representation, while the
Management Board consisted of two12 men.
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ASM Annual Report 2024
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12 Until May 2024, the Management Board comprised three members (all men)
Diversity, equity, and inclusion (DE&I)
Diversity
Equity
Inclusion
We embrace all the ways that
make each of us unique and
accept everyone for who they
are, so that our diversity of
thought can ignite innovation to
make us stronger
We choose to identify and
eliminate barriers that prevent
us fully participating, so
everyone can have access to
equal opportunities to thrive and
succeed in their ASM journey
We want to create a safe space
and invite everyone to
contribute and share their voice
so that they feel respected,
valued and supported
Belonging
We want everyone to feel accepted and connected as a valued member, so that we can be ourselves –
bringing our authentic self to work to do our best everyday.
We aim to increase female representation across all
levels of our organization. At the Sub board level, which
includes directors, vice presidents, and senior leaders,
female representation remained at 17% in 2024,
consistent with our 2022 baseline of 17%. Our aim is to
increase female leadership representation to 20% by
2025 and 25% by 2030. For our entire workforce, we
have set a parallel goal of achieving 20% female
representation by 2025 and 25% by 2030. In 2024,
female representation grew to 18%, up from 17% in 2023,
marking steady progress.
These targets were set by management in 2022 per
ASM's baseline levels and an industry benchmark. It was
subsequently approved by the Supervisory Board.
Gender diversity across our organization
Group
Headcount (Female)
Headcount (Male)
2023
2024
2023
2024
Sub board
17%
17%
83%
83%
Senior managers
18%
23%
82%
77%
Managers
23%
24%
77%
76%
Senior professionals
19%
20%
81%
80%
Professionals
19%
18%
81%
82%
Para-professionals
5%
5%
95%
95%
STEM-related
positions
9%
10%
91%
90%
All employees
17%
18%
83%
82%
Age diversity
Age diversity within our workforce is an important
element of our inclusion efforts. Employees from
different generations bring unique perspectives and
strengths, contributing to a well-rounded organizational
culture. Our commitment to fostering an inclusive
environment extends to ensuring representation across
all age groups, from early-career professionals to
seasoned experts.
Age diversity across our organization
Distribution of employees by age group (%)
2023
2024
Under 30
15%
14%
>30 and <50
66%
67%
Over 50 years
19%
19%
Workforce demographics
As a global company, our workforce is composed of
employees from diverse regions, and encompasses a
variety of contract types, predominantly permanent
employees, but also contingent workers. We did not
employ people on a non-guaranteed hours basis. Our
diversity enables us to maintain a dynamic and
adaptable workforce that can meet the evolving needs
of our customers.
Workforce demographics in numbers
By region
Employee headcount
America
Europe
Asia
Total
Total
1,337
665
2,630
4,632
Permanent
1,337
646
2,575
4,558
Temporary
0
19
55
74
Full-time
1,336
612
2,572
4,520
Part-time
1
34
3
38
By gender
Employee headcount
Female
Male
Total
Total
838
3,794
4,632
Permanent
827
3,731
4,558
Temporary
11
63
74
Full-time
812
3,708
4,520
Part-time
15
23
38
By embedding DEI into every aspect of our operations,
we continue to strive for a workplace that is innovative,
empowering, and inclusive, where each individual,
regardless of background, feels valued and has the
opportunity to contribute to our collective success.
Top 5 countries by headcount
Country
Number of employees
(headcount)
United States
1,337
Singapore
1,064
South Korea
493
Taiwan
408
Japan
330
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
76
17.3 Skilled workforce
Talent and leadership development
At ASM, we recognize that long-term career progression
and skill development are essential to retaining our
talented workforce and supporting our organizational
growth. In 2024, we remained committed to empowering
our people through comprehensive talent and
leadership-development initiatives aimed at both
upgrading skills and fostering future leaders within ASM.
We offer a variety of development programs that ensure
the right knowledge is available at the right time, as well
as support for both technical and leadership growth.
While we do not have a dedicated global policy for
training and skills development, we have chosen an
approach that prioritizes individualized growth to
support tailored development opportunities that align
with the unique needs of each individual.
Learning programs and employee skill-building
Our approach to learning and development is based on
the 70-20-10 model, which emphasizes that 70% of
learning occurs through on-the-job experiences, 20%
through coaching, mentoring, and networking, and 10%
through formal training programs. This balanced model
ensures that employees learn by doing, receive valuable
guidance from mentors, and have access to structured
learning opportunities to enhance their skills. This
principle is embedded across our development
initiatives, enabling ASM employees to grow effectively
and contribute meaningfully to our goals.
To maintain our competitive edge and technological
leadership in the semiconductor industry, we invest in
skill development and knowledge dissemination across
our workforce. This includes access to our in-house
technical development centers across different regions,
offering specialized deposition technology training
tailored to different employee roles and skill levels. In
addition, employees have access to scientific journals
and industry publications such as IEEE Xplore, Elsevier,
AIP, and TechInsights, supporting continuous learning
and keeping our workforce informed of the latest
industry developments.
One of ASM's top priorities is equipping managers to
lead the business effectively at scale. In today’s dynamic
business environment, being a people manager requires
adopting new skills and mindsets to coach, inspire, and
lead their teams with purpose. Our new LEAD Ahead
program is designed to accelerate this readiness while
offering managers a platform to collaborate, share best
practices, and establish a unified approach to team
leadership at ASM.
In 2024, 83% of managers completed Levels I and II of
the LEAD Ahead program, delivered through virtual and
in-person sessions to foster peer collaboration. In total,
more than 7,600 training hours were invested by
managers to elevate their leadership skills.
In 2024, we also updated our leadership development
curricula based on our ASM Leadership Success Profile,
combining internal expertise with external faculty for
greater impact. Our 'Develop Ahead' program
accelerates leadership development for mid-career
professionals through hands-on learning and structured
feedback, with business leaders serving as coaches.
Alumni may opt for internal mentoring to strengthen their
skills. We achieved a 91.5% satisfaction rate from the
first edition of 'Develop Ahead', with 24 professionals
taking part in the program, investing 384 hours.
Women in Leadership accelerates women's leadership
growth and fosters connections across the organization.
The program strengthens future-focused leadership
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Financial statements
Appendix
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77
Women in leadership
Driving business growth through diversity, equity, and inclusion
Why it matters
• At ASM, we recognize that diversity powers
innovation and creativity, leading to shared
success.
• Our Women in Leadership program accelerates
talent development as part of our focused
leadership portfolio.
•
This program reflects our commitment to building
an inclusive culture and creating opportunities for
equitable growth.
Program overview
• Practical leadership tools, exclusive dialogues with
Board leaders, and cross-functional networking
opportunities across global teams.
• Two-day in-person program in a key business
location followed by virtual masterclasses.
Participant impact
• Participant satisfaction: 9.0/10
• Content relevance: 9.2/10
“The Women in Leadership program
equipped me with insights and
practical skills for navigating gender
dynamics, and fostering an inclusive
leadership style that drives results.”
Judith Schrijver-Koning
Corporate Director, Business
Control
skills, builds change management capabilities, and
develops talent strategies. Participants create
professional networks and personalized career roadmaps
while learning from diverse peers – 20 women leaders
attended the first edition, achieving a 90% satisfaction
rate.
Performance management and career
development
Performance management is a critical element of our
skilled workforce strategy. At ASM, every employee
undergoes a structured annual performance review
process that includes setting objectives at individual,
team, and company-wide levels. These objectives
contribute directly to performance-based incentives,
ensuring alignment between employee performance and
ASM’s strategic goals.
Our performance review process involves mid-year
check-ins, year-end evaluations, and 360-degree
feedback mechanisms, promoting transparency and
facilitating constructive dialogue between managers and
their teams. In addition to these formal performance
cycles, ASM is stimulating an agile performance-
management approach. This unstructured approach
supports managing employee performance and
development throughout the year rather than relying
solely on annual or bi-annual reviews. Agile performance
management is collaborative, involving regular
conversations and continuous feedback. It not only
focuses on achieving annual performance outcomes but
also emphasizes the process of getting there, regularly
revisiting objectives, identifying barriers, and ensuring
effective performance.
In 2024, 99% of our employees took part in
performance- and career-development reviews,
ensuring that every individual receives feedback on their
performance and has opportunities to align their growth
objectives with ASM’s goals. This participation rate was
consistent across genders, demonstrating our
commitment to equitable career development
opportunities for all employees.
Employees that participated in annual performance
and career development reviews
2023
2024
Male
100%
99%
Female
99%
98%
Total employees
100%
99%
Training and development metrics
ASM tracks key metrics to ensure the effectiveness of
our learning initiatives. In 2024, the average number of
training hours per employee was 32 hours. This
investment in training reflects our dedication to
providing relevant and accessible opportunities for
professional growth across our workforce.
Average training hours for our global workforce
Gender
Avg. training hours
per employee
Technical training
hours
Male
35
48,888
Female
18
4,215
Total employees
32
53,103
The disparity in average training hours between men and
women stems from the representation of men in specific
roles that require a higher-than-average amount of
training annually. For example, in roles such as field
service engineering, where training demands are
highest, women currently represent 9% of the workforce.
The difference therefore reflects function-based training
requirements rather than unequal access to
development opportunities.
17.4 Health, safety, and employee
well-being
Our vision for health and safety
At ASM, our vision is ZERO HARM! – meaning we believe
all incidents and injuries are preventable and that health
and well-being are fundamental rights for all. This vision
is embodied in our Occupational Health & Safety (OHS)
policy, which guides our actions in creating a safe,
healthy, and supportive environment for everyone
working with or for ASM. This policy is available on our
website. We strive to care for the safety of our
employees, contractors, and partners while ensuring
safe operations within ASM and across our value chain.
Occupational Health & Safety (OHS)
management system
Our OHS management system is designed to cover all
aspects of occupational health and safety across our
operations. In line with international standards such as
the Responsible Business Alliance (RBA) Code of
Conduct and other leading frameworks, our system
ensures compliance with applicable legal requirements
while being grounded in our vision of ZERO HARM!. In
2024, 100% of ASM employees and on-site contractors
were covered by this system, ensuring their safety and
well-being are actively managed.
Our management system is based on a structured,
globally harmonized framework that includes hazard
identification, risk assessment, and safety leadership
across all operations. The system integrates internal
inspections, proactive risk identification measures such
as Safety Management by Walking Around (SMBWA),
and regular Good Catch reporting, with the aim to ensure
the early detection of potential risks and the effective
implementation of preventive measures. External
verification of our health, safety, and well-being
management system is planned to be conducted in 2025
according to ISO 45001 standards, providing an
independent assessment of our compliance and
performance at all our R&D and manufacturing locations.
We also prioritize and integrate action plans with
quantified targets to address identified health and safety
risks. These action plans are monitored and evaluated to
assess progress in reducing or preventing health issues
or risks against established targets. To further enhance
our preparedness, we have integrated emergency
response actions, including trained Emergency Response
Teams (ERT) to manage incidents effectively at our key
production and R&D sites.
Well-being and work-life balance
At ASM, we recognize that employee well-being is
integral to our success. Our working hours and employee
well-being policies adhere to local regulations, and align
with the RBA guidelines, which dictate a workweek of no
more than 60 hours, including overtime, with at least one
day off per seven days. To ensure compliance and
promote a healthy work-life balance, we actively monitor
the hours of our employees that work in manufacturing.
In 2024, we were able to meet RBA working hours
standards globally. Our global absenteeism rate
remained low at 1% in 2024 (2023: 1%), indicating the
effectiveness of our well-being initiatives, which include
promoting mental and physical health, and providing
access to comprehensive health services. These
initiatives are aimed at fostering an environment where
our employees can thrive, both professionally and
personally.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
78
Safety leadership and culture
Safety is everyone's responsibility at ASM. Our safety
leadership initiatives are built around empowering all
employees, regardless of role, to take ownership of their
health and safety practices. In 2024, we reinforced our
commitment through the 7Es of Safety Leadership
program, which includes 'Engage' as the 7th 'E',
emphasizing the importance of active engagement in
safety practices. Our Safety Leadership Award continues
to recognize employees who contribute significantly to
creating a safe work environment, reinforcing positive
safety behaviors and leadership.
We maintain a safety culture that is both proactive and
participatory. Employees are encouraged to call a 'Stop
Work' if they encounter a potentially unsafe situation,
and actively participate in safety committees and
working groups across our sites. Our safety engagement
includes sharing best practices and data transparently.
In 2024, we extended our safety-leadership
collaborations to new customers, promoting a culture of
continuous improvement in health and safety
performance.
Safety leadership awards 2024
Design Engineer - Italy
Manufacturing Manager - Korea
Design Engineer - The Netherlands
Service Engineer - United States
Key safety programs
To drive our ZERO HARM! vision, ASM focuses on
several key safety programs and strategic initiatives:
Continuously improving our safety systems
ASM uses a structured procedural approach to
investigating health and safety incidents and exposures.
Our SHIELD platform continues to be an essential tool in
managing safety data, incidents, and performance. The
system integrates various mechanisms for conducting an
investigation, starting with forming the right team
qualified to lead the investigation. It also allows for
effective tracking and predictive capabilities, which are
crucial for reducing health and safety risks. The OASIS
system, first launched in 2022, supports product safety
by managing risk assessments and safety validations
throughout product development, ensuring safety by
design.
Training our employees to be safety leaders
Safety is not just a part of ‘safety training’. We embed it
in equipment-specific training, so it is part of the
equipment maintenance and manufacturing
experience, and not something only covered by policy.
This way, we are increasing the knowledge of safety
risks, associated with the equipment being used, in job
tasks to reduce the potential for future incidents with the
equipment. We also engage every new employee around
the basics of safety during our new-hire orientation
course. This is in addition to the safety training specific
to working in high-hazard areas or conditions.
In 2024, we enhanced our Advanced Safety Training
program, reaching over 3,000 employees globally. This
program empowers teams with practical knowledge,
fosters awareness, and prepares them to respond
confidently to real-world challenges. Updated quarterly,
materials incorporate the latest regulations and
technology, making safety knowledge actionable.
In addition, we believe in practical application and
engagement, ensuring training reflects daily operational
realities. Toolbox talks, formal safety modules for high-
risk areas, and scenario-based sessions are key
components of our approach to safety training.
Rolling out our strategic plan
Our multi-year strategic plan, which launched in late
2023, aims to elevate ASM’s safety culture, achieve a
leading safety performance, and inspire improvements
across the industry. The plan focuses on leadership,
data-driven learning systems, key risk areas, and
enhancing safety through innovation.
Targeted risk reduction
Specific areas such as R&D labs, manufacturing, and
global service environments represent our highest health
and safety risks. We implement multi-dimensional risk-
reduction plans that focus on these areas by directly
addressing risks and making procedural improvements.
Collaboration and industry engagement
We continue to play an active role in the broader
industry to promote safety. Our engagement with SESHA
and our continued role as president, as well as being a
top tier (Titanium) sponsor, reflect our dedication to
contributing to industry standards, good practices, and
sharing knowledge that can enhance safety globally.
Our 2024 performance
ASM is committed to transparency and the continuous
improvement of our health and safety performance. Our
safety performance is measured by the total injury rate,
which includes all injuries requiring first aid or more. In
2024, our total injury rate was 0.47 cases per 100
employees (2023: 0.48), above our target of 0.37.
Our recordable injury rate, which includes injuries
requiring medical treatment beyond first aid, restricted
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
79
Making our products
and inspiring
colleagues to be safer.
Eliminating risks for an
overall safer ASM.
Meticulous attention to
safety detail in
engineering our
products.
Engaging customers
and driving innovative
safety.
work, or lost work days, was 0.22 (2023: 0.28),
compared to a target of 0.17. While this metric indicates
improved results compared to the previous year, it falls
short of our targets. We remain committed to achieving
ZERO HARM!
Health and safety results from our own workforce
2023
2024
Number of fatalities related to
work-related injuries and work-
related ill health
0
0
Recordable work-related
injuries
13
11
Recordable work-related ill
health
0
1
Recordable work-related injury
rate
0.28
0.24
Injury rate
0.48
0.47
Lost workday injury rate
0.11
0.06
Days lost from work-related
injuries and ill health and related
fatalities.
54
22
Throughout 2024, we aimed to ensure that safety was
top of mind. Each quarter, there were review meetings of
Lab, Manufacturing, and Service strategic plans and
progress. Health and safety continued to be a standing
topic for the Executive Committee meetings. Such
reviews focused on our success in reducing and
preventing the recurrence of issues from prior incidents
or exposures.
While the total injury rate remained close to last year's
performance, we noticed a 45% drop this year in more
serious injuries occurring, which lead to lost work-days.
We believe this drop is due to our efforts of proactive
risk mitigation, as well as the increased attention to
safety through growing engagement, making it more top
of mind for our colleagues globally.
Looking ahead
Recognizing the importance of sustained improvement,
we are transitioning from annual total injury rate targets
to a long-term, multi-year strategy focused on reducing
total recordable injury rates. This shift allows us to take a
more comprehensive approach to workplace safety,
emphasizing continuous progress rather than year-over-
year fluctuations. By committing to a multi-year target,
we can implement more impactful safety initiatives,
strengthen proactive risk-mitigation efforts, and foster a
lasting safety culture across our global operations.
By 2030, we aim to achieve a recordable injury rate of
0.15, representing a 38% reduction from our 2024
baseline result of 0.24. This target applies to all
employees and contractors globally and aligns with
international occupational health and safety standards.
Our strategy integrates preventative safety measures,
ergonomic risk reduction, and behavioral safety
programs to drive continuous improvement, in alignment
with our 7E framework. Progress will be monitored on a
quarterly basis through incident tracking and internal
safety audits, with annual disclosures in our public
annual reports.
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Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
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18. Supply chain responsibility
ASM is dedicated to upholding human rights and
ensuring safe and fair working conditions
throughout its supply chain. We prioritize freely
chosen employment, workplace safety, and the
right to rest for all workers, collaborating closely
with our suppliers to consistently maintain these
standards.
18.1 Supply chain overview
ASM recognizes that our business impact goes beyond
our direct operations, reaching across our global network
of suppliers. These suppliers provide the critical
materials and services that support our ongoing success.
Understanding the context of our supply-chain
environment – geographic disparities, industry-specific
dynamics, and vulnerabilities in commodity sourcing –
has informed the policies and practices we have
implemented to mitigate risks and uphold responsible
conduct across our supply chain.
Geographic and commodity risk overview
From a geographic risk perspective, ASM's suppliers are
located globally, which introduces a range of risk factors
associated with different regions. Evaluations of supplier
responses, complemented by third-party assessments of
human-rights risks, have led to the identification of
several geographies within our Tier 1 supply chain that
exhibit higher risks for forced, child, or compulsory labor.
These geographies include China, Malaysia, Mexico, and
Vietnam, where certain suppliers conduct manufacturing
activities for ASM.
In addition to geographic risks, ASM directly (Tier 1) and
indirectly (Tier 2+) sources several commodities known
to be at a higher risk for unsafe working conditions and
excessive working hours. These commodities include
minerals like tin, tungsten, tantalum, gold, cobalt, copper,
mica, silver, and zinc, as well as materials and goods
such as ceramics, electronics, glass, iron, rubber, rubber
gloves, sand, silicon, sapphires, textiles, and timber.
Given the complexities inherent in assessing risks for
each specific commodity, ASM is actively expanding its
value-chain assessments to better understand these
risks and identify areas for mitigation.
Industry demand fluctuation and its potential
impact
As a key player in the semiconductor value chain, ASM,
along with our direct material and service suppliers, is
subject to the cyclicality of demand profiles from our end
customers. This demand variability presents particular
challenges for suppliers relying heavily on manual labor
and those that have a high dependence on the
semiconductor industry. Fluctuations in demand can lead
to increased incentives for excessive working hours, loss
of rest days, and heightened use of foreign, migrant, or
temporary workers.
In times of economic downturn, reduced demand may
force suppliers to adjust their workforce, resulting in
reduced working hours, lower associated wages, and
even furloughs or layoffs. To mitigate these cyclical
effects, we have developed a long-range planning
forecasting process that enhances our ability to
anticipate and prepare for demand shifts. Additionally,
we aim to establish contractual agreements that require
suppliers to carry inventory to smooth out demand
cycles and improve lead times.
We also encourage suppliers to consider labor needs
that are consistent with appropriate working hours and
rest periods while designing their production capacities.
Supply chain insights
2023
2024
Total # of ASM suppliers
>1,000
>1,000
# of critical and strategic (C/S)
direct materials suppliers
80
87
# of indirect materials and
services suppliers in scope of
n.a.
21
% of total spending covered by C/
S suppliers
0.58
0.63
% of total spending covered by
indirect suppliers in scope of
sustainability program
n.a.
0.06
Policies governing supply-chain risks
At ASM, we establish clear expectations for our suppliers
concerning the treatment of workers in their operations
and the responsible sourcing of high-risk minerals
throughout the upstream supply chain. These
expectations require suppliers to not only comply but
also ensure that their own supply chains uphold these
standards. To formalize these requirements, we have
developed three foundational policy documents: (1) the
Supplier Code of Conduct policy statement, (2) the
Responsible Minerals policy statement, and (3) the
Human Rights policy. All three documents ensure that
we align with international standards and ethical
business practices, such as the United Nations Guiding
Principles on Business and Human Rights and the OECD
Guidelines for Multinational Enterprises.
Our responsible supply chain management strategy
employs a risk-based approach, enabling us to prioritize
engagement with suppliers identified as being at a
higher risk of non-compliance with our standards. In
instances where non-compliance is detected, ASM
works collaboratively with these suppliers to implement
effective remediation measures. This process is
governed by a predefined escalation mechanism that is
based on Responsible Business Alliance (RBA) best
practices. It is designed to facilitate corrective actions
and bring suppliers into alignment with our expectations.
If suppliers fail to meet minimum sustainability
requirements within a set timeframe, it will affect their
performance scorecard and trigger progressive
escalations, which may include restrictions on new
business opportunities and, in some cases, the
termination of their business relationship with ASM. In
reverse, if suppliers perform well on sustainability, this
will be positively reflected in their scorecards, which in
turn contributes to contract awarding.
The sustainability requirements for suppliers are
assessed annually and deployed throughout the
commodity organization. This helps ensure our
purchasing practices are aligned with the requirements
set forth in our policies.
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Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
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81
Supplier Code of Conduct and Human Rights
policy statements
ASM's Supplier Code of Conduct and Human Rights
policy statements mandate that all Tier 1 suppliers
comply with standards based on the RBA Code of
Conduct. This code, along with our Human Rights policy,
are linked to key international frameworks such as the
United Nations Guiding Principles on Business and
Human Rights, the ILO Declaration on Fundamental
Principles and Rights at Work, and the Universal
Declaration of Human Rights. These policies articulate
clear expectations for suppliers in relation to individual
rights, worker treatment, environmental footprint
minimization, responsible sourcing of high-risk minerals,
and cascading these standards through their own supply
chains. The Supplier Code of Conduct and our Human
rights policy address fundamental labor and human-
rights principles, which include but are not limited to:
a. free and equal in dignity and rights;
b. freedom from discrimination and equal pay for equal
work;
c. freedom from slavery and freely chosen employment;
d. right to privacy;
e. freedom of assembly and association;
f. right to rest and leisure;
g. right to safe and healthy working conditions, including
access to clean water and sanitation;
h. a clean, healthy, and sustainable environment;
i.
abolition of child labor; and
j.
access to remedy and grievance mechanisms
Our material impacts, risks, and opportunities are
covered under the human rights principles c, f, and g.
These policies establish behavioral norms and
procedural requirements that we seek our suppliers to
adopt to manage human-rights risks effectively.
The health, safety, and well-being of workers in the
supply chain is important to ASM, as the conditions in
which supply chain personnel work must be safe and
free of unnecessary risk. Our Supplier Code of Conduct
also conveys this to our suppliers through both
acceptance of the Supplier Code of Conduct and
contractual language in purchase agreements.
Responsible Minerals policy statement
In addition to labor standards, ASM is committed to
safeguarding human rights throughout our extended
supply chain, with a particular emphasis on high-risk
minerals. Our Responsible Minerals policy applies to all
Tier 1 suppliers and aligns with the principles of the
Responsible Minerals Initiative (RMI), the US Dodd-Frank
Act, and the EU Conflict Minerals Regulation (2017/821).
This policy targets Conflict-Affected and High-Risk
Areas (CAHRAs) and mandates that direct suppliers
source materials responsibly while adhering to relevant
regulations. They are required to provide declarations
through industry-standard mechanisms.
ASM employs recognized due-diligence frameworks,
such as the OECD Due Diligence Guidance on
Responsible Business Conduct, to identify and mitigate
human-rights risks related to mineral sourcing. Any non-
compliance with these frameworks must be disclosed by
suppliers during reporting.
18.2 Engaging our suppliers
Supply-chain risk assessments and due diligence
ASM systematically assesses supply-chain worker risks
through proxies like the RBA, RMI, and the Responsible
Factory Initiative (RFI). These organizations provide
crucial insights into worker-related risks within the
supply chain and enable ASM to proactively address
potential negative impacts. These insights allow us to
consider the inherent sustainability risks associated with
countries, commodities, and sectors.
About the Responsible Business Alliance
Founded in 2004, RBA is a nonprofit of
electronics, retail, auto, and toy companies
supporting workers' rights and well-being in
global supply chains. Members (like ASM)
commit to upholding the RBA Code of
Conduct and use RBA tools for continuous
improvement in social, environmental, and
ethical responsibility.
RBA engages with workers, governments, civil
society, investors, and academia to gather
perspectives and drive progress towards a
responsible global electronics supply chain.
RBA and its Initiatives have over 500
members with combined annual revenues
exceeding $7.7 trillion, employing over 21.5
million people, with products made in 120+
countries. Tier 1 suppliers of the 500
members also implement the RBA Code of
Conduct, creating a structural pass-down of
the norms captured there.
As a member of these organizations, ASM is committed
to leveraging their tools and adhering to best practices
to facilitate continuous improvement across the supply
chain in the space of labor practices, health and safety,
ethics, and environmental management.
ASM also integrates third-party evaluations and data
insights to identify vulnerable worker groups that may be
at risk of human-rights violations. This informs our
efforts to continuously refine our risk-mitigation
strategies, with a focus on the most at-risk worker
populations. Through collaboration with industry
initiatives, such as the RBA and RMI, we work towards
enhancing supplier capabilities, with particular emphasis
on improving compliance with human-rights standards.
Engagement methods and tools
To engage our supply chain effectively, ASM makes use
of a variety of methods to assess and support our
suppliers, ensuring they adhere to our human-rights
standards. Methods include:
• Self-assessments and surveys: Suppliers are required
to complete self-assessments to provide information
on their practices, which helps ASM identify potential
areas for improvement and tailor engagement efforts
accordingly.
• Audits: ASM conducts audits through third-party
organizations, to monitor adherence to our Supplier
Code of Conduct. Suppliers are evaluated on high-risk
areas as identified through our risk assessments.
• Training and capability building: ASM provides training
to suppliers on human rights, labor standards, and
safety. Our training initiatives focus on increasing
supplier understanding and building capacity to meet
ASM's expectations.
• Collaborative remediation: In instances of non-
compliance, ASM seeks to collaborate with suppliers
to develop corrective action plans. This approach
aims to not only rectify specific issues but also build
long-term supplier capabilities in meeting our
standards.
Groups identified as higher risk for involuntary labor,
health & safety incidents, and/or excessive working
hours include:
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Financial statements
Appendix
ASM Annual Report 2024
82
Vulnerable worker groups
Identified in
ASM's direct
supply chains
Not identified in
ASM's direct
supply chains
Upstream
X (Minerals
sourcing)
Distribution providers
X
Franchisees
X
Retailers
X
Logistics
X
Self-employed
X
Joint venture or special
purpose vehicle
X
Home workers
X
Contract or temporary
X
Union
X
Young
X
Female
X
Foreign or migrant
X
Our process for managing Code commitment, supplier
self-assessment, auditing, and corrective action aligns
with industry standards. The RBA Code requires
appropriate management systems and risk-mitigation
actions to ensure the well-being of workers at our
suppliers, and in their respective supply chains. We
developed a four-step approach through which we drive
our engagement:
Key-supplier compliance process
Our engagement activities focus on the supplier
companies, versus individual workers.
Prioritization of supplier engagement
ASM’s engagement approach is informed by a structured
prioritization process that identifies which suppliers
require the most attention based on risk assessments.
This prioritization is managed through the Supply Chain
Sustainability Management Forum, which comprises
executives from ASM’s global supply chain and
sustainability teams. The forum is responsible for
ensuring alignment with ASM’s broader corporate
sustainability goals and for implementing targeted
interventions where they are most needed.
To ensure accountability and a cohesive approach, the
Director for Supply Chain Sustainability oversees the
forum, which regularly reports to the Sustainability
Leadership Council. This integrated governance
structure allows ASM to maintain alignment with our
corporate objectives and continuously refine our
supplier-engagement strategies to achieve optimal
outcomes.
Grievance mechanisms and whistleblower
protection
ASM places a strong emphasis on providing accessible
grievance mechanisms for workers in our supply chain.
Our whistleblower channel is available to all
stakeholders, including supply-chain workers, allowing
them to report any issues confidentially and without fear
of retaliation. Refer to section 19.1 'Corporate culture and
ethics' for more information on our channel. ASM also
requires suppliers to implement similar whistleblower
mechanisms that ensure confidentiality, anonymity, and
protection for employees. The effectiveness of these
mechanisms is assessed through supplier audits, which
often include direct worker interviews to verify
accessibility and reliability. In addition, we expect the
utilization of these tools to serve as a key indicator of
trust in such processes. Higher usage rates reflect
increased worker confidence in our ability to address
their concerns effectively and fairly.
In addition to our internal mechanisms, ASM benefits
from our participation in RBA and RMI programs, which
also provide anonymous channels for raising concerns.
These multi-channel grievance systems ensure that
supply-chain workers have multiple avenues to report
grievances and contribute to the continuous
improvement of working conditions throughout our value
chain.
Tracking effectiveness of our supplier
engagement
ASM is utilizing 2024 as a baseline year to assess our
supplier-engagement efforts. Based on this data, we aim
to develop concrete targets in 2025 to enhance our
strategies and performance. We aim to assess the
effectiveness of our remediation efforts through multiple
performance indicators, which provide comprehensive
insights into critical areas of worker welfare and supply-
chain sustainability. We will measure the supplier’s risk
and progress through RBA Self-Assessment
Questionnaire( SAQ) responses, RFI assessments, Code
of Conduct Audits, Minerals Reporting Templates, and
other relevant assessments as needed.
Our targets will be linked to year-over-year percentage
improvement at supplier sites in the following focus
areas:
• risk for major health and safety incidents;
• involuntary labor exposures;
• risk of child labor or young worker non-compliance;
and
• chance of violating requirements on rest days and
working hours standards.
In addition, we will work toward year-over-year
improvement in the percentage of in-scope suppliers
identifying high-risk Smelters or Refiners (SORs) in
ASM's supply chain.
By assessing the changes to these metrics on an annual
basis, we are able to monitor the impact of our
engagement activities and adjust our strategies
accordingly. By maintaining a data-driven approach,
ASM ensures that our supplier-engagement programs
contribute to reducing risks and improving the overall
welfare of workers in our supply chain.
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Strategy and performance
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Leadership and governance
Financial statements
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Phase 2
Map and
prioritize
risks
Phase 1
Set, refresh, and
communicate clear
expectations
Phase 4
Corrective
action
and, when
appropriate,
remediation
Phase 3
Assess individual
supplier conformance
18.3 Taking action
In 2024, ASM implemented comprehensive measures to
advance supply-chain responsibility, focusing on
conducting risk assessments, enhancing supplier
compliance, and building supplier capabilities to align
with our Supplier Code of Conduct and sustainability
goals. These initiatives reflect ASM's commitment to
mitigating human-rights risks throughout our supply
chain.
Supplier Code of Conduct commitment and
assessment
By the end of 2024, 94% of our critical and strategic
suppliers had formally committed to adhering to our
Supplier Code of Conduct, covering 85% of our direct
material spend. We also required our key suppliers to
complete the RBA Self-Assessment Questionnaire (SAQ)
for relevant manufacturing sites, providing a thorough
assessment of compliance across our value chain.
In 2024, 87% of the requested suppliers completed the
RBA SAQ. Among the 87 critical and strategic suppliers
who completed the SAQ, nine were classified as high-
risk.
Supplier audits and follow-up monitoring
ASM continued its focus on the risk-based sampling of
our supply chain through third-party audits, leveraging
the RBA’s Validated Assessment Program (VAP) to
ensure supplier adherence to ASM standards. These
audits aimed to ensure compliance with critical human-
rights standards.
Supply chain engagement results
Suppliers acknowledging our Supplier Code of Conduct
Total # of surveyed suppliers
80
103
% of direct material spending
covered by surveyed suppliers
82 %
85 %
% of surveyed suppliers that
acknowledged our supplier
code of conduct
99 %
94 %
% of requested supplier
facilities who completed RBA
self-assessment
76 %
87 %
Involuntary labor at ASM suppliers
# of supplier sites with reported
incidents of involuntary labour*
n/a
6
Health & Safety at ASM suppliers
# of supplier sites reporting
work related serious injuries and
fatalities*
n/a
4
Working hours at ASM suppliers
# of supplier sites with reported
incidents of egregious working
hours or insufficient days of
rest*
n/a
2
Supply Chain Worker Voice
# of Supplier/Supplier Worker
issues identified and
dispositioned through ASM
grievance process (captured
through ASM’s SpeakUp!
channel, RBA or other)
0
0
Total # of Supplier Workers that
have been through an RBA on-
site audit (or other equivalent
social audit)
n/a
6893
* pending verification
2023
2024
Supplier capability building
ASM invests in building the capabilities of our suppliers,
ensuring they are equipped to meet our expectations.
Through initiatives like the Responsible Factory Initiative
and our supplier-development programs, we provide in-
depth technical support to improve the sustainability
performance of our suppliers. This includes remote and
on-site education sessions, training, and resources to
help suppliers improve their performance, their code of
conduct compliance, and to close out corrective
improvements most effectively.
Our worker safety vision on ZERO HARM! also applies to
our suppliers. ASM’s safety and supply-chain leadership
are committed to helping suppliers to further develop
their health & safety programs, and in cases of new
supplier selection, making sure those suppliers have
appropriate measures in place before bringing them into
ASM’s value chain. In addition, where safer chemicals or
materials can be used, we look to incorporate those
opportunities into our product development.
Training initiatives
Throughout 2024 we organized a series of training
sessions, with 286 suppliers taking part in our dedicated
sustainability training programs. Additionally, we held
seven webinars to share best practices in adhering to
codes of conduct and reporting conflict minerals. Apart
from training our suppliers, we also organized several in-
person trainings to equip our global procurement
organization and local facilities teams with the skills to
effectively engage suppliers on safety and labor
practices.
Responsible Factory Initiative
Since 2023, our supplier-development program includes
the use of the RBA’s Responsible Factory Initiative. This
program focuses on the development of a supplier’s
code of conduct conformance through a multi-phased
approach: Education-oriented gap assessment, deep
training for key facility personnel, and coaching through
the development and execution of corrective action
plans. ASM is also invested in the future success of this
industry program by participating in the RFI’s Advisory
Council.
In 2024, six of ASM's suppliers joined the program, to
enhance their sustainability maturity through education
programs and targeted capability-building support.
Capability-building activities
2023
2024
Number of suppliers
participating in the Responsible
Factory Initiative program
5
6
Number of supplier attendees
that joined ASM’s sustainability
training sessions
359
286
Number of webinars hosted for
suppliers in which sustainability
best practices are shared
10
7
% of commodity managers
trained on sustainability
88 %
93 %
Conflict Minerals survey results
Each year, we survey our suppliers to identify and map
the sources of tin, tungsten, tantalum, and gold (3TG)
minerals that are used by our critical and strategic
suppliers. For the latest survey cycle, completed in May
2024, 96% of surveyed suppliers responded with a
Conflict Minerals Reporting Template (CMRT) or
confirmed there are no instances of 3TG in their
products.
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Leadership and governance
Financial statements
Appendix
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Conflict Minerals survey results
2023
2024
Total # of surveyed
suppliers
70
77
% surveyed who
responded
99%
96%
% who declared no 3TG
45%
42%
# of suppliers with high risk
SORs reported
24
28
YoY change in % of
suppliers with high risk
SORs (in p.p.)
n/a
2
Top 5 countries of origin
for 3TG minerals (as
identified by smelters or
refineries)
China, Brazil,
Japan,
Canada, Chile
China, Brazil,
Australia,
Indonesia,
Japan
A review of the most recent supplier CMRT submissions
shows that 68% of suppliers reporting 3TG are meeting
ASM standards for quality of the program. A total of 28
suppliers reported high-risk SORs in 2024. This is driven
by an increase in the overall number of smelters/
refineries reported by our suppliers and flagged as High-
Risk (2 percentage point increase year-over-year).
We are actively working with our impacted suppliers to
develop their Conflict Minerals programs and proactive
plans to reduce dependence on high-risk SORs. Smelter
and refinery risk is determined based on a combination
of geographic risks (sourcing from conflict-affected and
high-risk areas), audit status (conformance), and other
identified sourcing risks (such as credible third-party
sources).
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Leadership and governance
Financial statements
Appendix
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19. Business conduct
We aspire to the highest standards of business
conduct and to fostering a positive corporate
culture. Sound ethical practices are a key
component of our company culture,
management, and behavior.
19.1 Corporate culture and ethics
Our company culture is expressed through our core
values – We Care, We Innovate, We Deliver – as well as
our day-to-day behaviors in the workplace. These
behaviors center around a workplace that fosters
Accountability, Collaboration and Empowerment (ACE).
• Accountability is showing up, accomplishing the
things you said you would do and taking personal
responsibility for your work
• Collaboration is working together to complete a
project or task or develop ideas or processes.
• Empowerment is enabling our people to have the
authority, resources and support to make decisions
and take actions that affect their work and contribute
to ASM’s success.
We believe that strong adhesion to our core values and
behaviors is key to fostering our positive corporate
culture. All employees are expected to role model ACE
and always act with integrity. We promote open
communication and regularly engage with employees to
gather feedback and address their concerns.
In 2024, we took further steps to integrate our ACE
behaviors into our way of working by making them part
of our performance-management process, allowing
employees to reflect on their behaviors and explore
ways to foster teamwork and drive personal growth. We
also incorporated ACE into our leadership development
training. Recognition programs and performance
incentives are designed to reinforce positive behavior
and motivate employees to achieve excellence.
To further support ASM behaviors, ASM’s management
system includes 18 underlying business-conduct
policies, including fair competition, gifts, entertainment
and hospitality, corruption and improper advantages,
and anti-fraud. All of these policies apply to our
Management Board, Executive Committee, employees
worldwide, consultants, contractors, temporary
employees, and critical and strategic suppliers.
Our policies are available on our company website, and
are designed to promote ethical behavior and integrity in
all aspects of our operations. These include:
Code of Business Conduct policy
The ASM Code of Business Conduct (COBC)
incorporates the RBA Code of Conduct standards
framework. Our COBC outlines the principles and
standards that govern our business conduct. It provides
clear guidance on ethical decision-making and reinforces
our commitment to legal compliance, transparency, and
accountability. All employees are required to adhere to
this code at all times and to speak up in case they
observe misconduct.
(Anti-)Bribery and Corruption policy
We have a zero-tolerance approach to bribery and
corruption. Our policy prohibits any form of bribery,
whether direct or indirect, and applies to all employees,
suppliers, and business partners. ASM periodically
conducts audits to ensure adherence to this policy and
uses a suite of measures to prevent and detect any
unlawful behavior.
SpeakUp! procedure (whistleblower protection)
Our publicly available SpeakUp! procedure ensures that
all reports are treated confidentially and investigated
promptly and independently. We have established
secure channels for reporting concerns for internal and
external stakeholders, such as the third-party hosted
SpeakUp! channel. We are committed to always
protecting the rights of whistleblowers. Our way of
working is set up in accordance with the EU Directive
2019/1937 that helps ensure proper protection measures
are in place.
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
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19.2 Ethics, Bribery, and Corruption
Training
The deployment of our business conduct policies comes
with training for all employees, including part-time
employees and contractors, in multiple languages. The
training is designed to effectively promote desired
behavior, not just reinforce rules. It also outlines the
potential consequences of violations through our
disciplinary policy. To support the training, we provide
various resources, including a dedicated intranet page,
reference materials, and tools for specific areas, such as
gifts and entertainment registration, as well as the
SpeakUp! procedure – an anonymous channel for
reporting concerns or violations of the COBC.
We also provide dedicated anti-bribery and corruption
training for those functions considered by nature to have
higher exposure to associated risks. At ASM, these
include our sales and procurement departments, with
employees receiving online training that explains
associated policies and tools that help ensure proper
conduct.
In 2024, Management Board and Supervisory Board
members were offered online refresher trainings on
fraud, bribery, and corruption to enhance their up-to-
date understanding of associated risks and
responsibilities. Content understanding of bribery and
corruption are also captured in the Supervisory Board
skills matrix which can be found in chapter 24. There,
they are integrated under the category 'Governance and
Legal Affairs'.
Code of Business Conduct trainings
Category
Target audience
% training
completed
Ethics training
refresher (bi-annual)
All employees
92 %
Ethics training
New employees
95 %
Anti-Corruption and
Bribery training
At-risk functions
97 %
Managing business conduct risks
Our approach to managing anti-bribery and anti-
corruption (ABAC) risks aligns with the company's risk-
management and internal-control framework, which is
based on the three lines of defense model (further
detailed in chapter 25 of this report). The Executive
Committee, entrusted with risk management and
compliance, is supported by operational management
(first line), oversight functions (second line), and Internal
Audit (third line) to effectively identify, mitigate, and
monitor ABAC risks.
Speaking up
The SpeakUp! program remains a vital platform for ASM
employees and stakeholders to report business conduct
issues confidentially and in their preferred language. As
part of its risk-management responsibility, the Executive
Committee oversees business conduct at ASM and has
established the Ethics Committee – made up of regional
leaders from the Legal, People, and sustainability
departments – to operationalize the business conduct
program and make sure it is deployed globally. The
Ethics Committee is supported by the Chief People
Officer and General Counsel, with Internal Audit taking
part as an independent observer and advisor.
The Ethics Committee ensures effective follow-up to
concerns that have been raised, the independence of
investigators through ensured separation of the chain of
management involved, increased awareness of our Code
of Business Conduct, maintenance and deployment of
investigator training materials, and support in
investigations as needed. Reports of potential violations
of our COBC can be made through the SpeakUp!
process, directly to management, the People team, or
the Global Compliance Officer.
To ensure ongoing compliance and effective risk
management, ASM conducts annual ESG desktop audits
of its major locations, that also cover our business ethics
program. Where needed, we cover deep-dive
assessments.
In 2024, 27 concerns were reported (2023: 14), an
increase of 93% from 2023. This rise in reported cases
signals a growing awareness and trust in the Ethics
Committee among our employees, as our utilization rate
grew to 0.58. Based on Navex's 2024 Whistleblower &
Incident Management Benchmark report, we consider
this a positive development as we move towards the
median range for utilization.
Of the reported cases, one case was related to
discrimination but found to be unsubstantiated. Eight
cases were confirmed as violations of our COBC, with
five cases still under investigation. Our actions in
response to code of conduct violations, including
discrimination, can take different forms, including a
verbal warning, a written warning, a poor performance
review or evaluation, a mandatory training, or a
termination. In 2024, actions taken in response to
confirmed violations included targeted training,
coaching, and, in some cases, dismissal. None of these
cases related to discrimination, or to bribery and
corruption.
In 2024, there were no convictions and, consequently,
no fines for violation of anti-corruption and anti-bribery
laws.
Updates on the outcomes of investigations and the
status of business-conduct measures, including in
relation to anti-bribery and corruption, are reported
quarterly to the Management Board, and bi-annually to
the Supervisory Board. These updates include reports on
significant incidents, findings, actions taken and,
depending on the nature of the situation, are provided
by the Chief People Officer.
2024 breaches of our code of conduct
Type of complaint
2024 confirmed breaches
Corruption or bribery
0
Discrimination or harassment
0
Employee behavior & workplace
respect
7
Customer privacy data
0
Conflicts of interest
1
Money laundering or insider
trading
0
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Leadership and governance
Financial statements
Appendix
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20. EU taxonomy
EU Taxonomy explanation
The EU Taxonomy Regulation (EU 2020/852) provides a
common language and methodology that helps
companies and investors identify 'environmentally
sustainable' economic activities.
Companies falling under the Corporate Sustainability
Reporting Directive (EU 2022/2464) are required to
report on the EU Taxonomy, in accordance with the
Climate Delegated Act (EU 2021/2139), Disclosure
Delegated Act (EU 2021/2178), Complementary Climate
Delegated Act (EU 2022/1214), and Environmental
Delegated Act (EU 2023/2486).
Since 2021, companies need to report on the key
performance indicators (KPIs) for the proportion of their
eligible activities considered to be ‘green’, or in EU
Taxonomy terminology ‘aligned’ with the six
environmental objectives described in Annexes I-IV of
the Environmental Delegated Act (EU 2023/2486):
• Climate change mitigation (CCM);
• Climate change adaptation (CCA);
• Sustainable use and protection of water and marine
resources (WTR);
• Transition to a circular economy (CE);
• Pollution prevention and control (PPC); and
• Protection and restoration of biodiversity and
ecosystems (BIO).
The relevant KPIs for eligibility and alignment are
reported as the proportion of turnover, capital
expenditure (capex) and operating expenses (opex) in
line with the EU Taxonomy delegated acts.
Assessment 2024
In 2024, ASM again assessed its economic activities in
line with the EU Taxonomy regulation. The evaluation
indicated that eligibility of most of our economic
activities falls under CE and in small parts under CCM
objectives. For alignment with EU Taxonomy, ASM
identified a current gap in the Minimum Safeguards
requirements, which it expects to resolve in 2025. As a
result, no further alignment assessment was conducted.
While ASM reports eligibility under the climate change
mitigation (CCM) objective (7.7 Acquisition and
ownership of buildings), it is noted that ASM has the
potential to be an enabler in reducing the carbon
footprint of its customers and end-use customers. ASM’s
technology and innovation allows its customers and, in
turn, their customers down the value chain to introduce
electronic devices with superior performance and lower
energy consumption. ASM’s innovative R&D activities,
aimed at continuously improving technologies to help
deliver further energy reductions, are a key enabler in
this.
ASM does not have any nuclear energy- or fossil gas-
related activities and the Complementary Climate
Delegated Act of the EU Taxonomy is therefore not
relevant.
The EU Taxonomy KPI disclosure templates for turnover,
capex and opex are provided at the end of this chapter.
Turnover
The EU Taxonomy requires alignment with the financial
reporting standards. For ASM, this means that the
turnover under the EU Taxonomy is equal to ‘Revenue’
included in the Consolidated statement of profit or loss
in the IFRS financial statements.
Although this is the fourth year for reporting, ASM
underlines that the taxonomy is still evolving.
Furthermore, one specific category within the EU
Taxonomy (manufacturing of low-carbon technologies
(3.6)) close to the activities of ASM, is subject to
interpretation. As in previous years, ASM applied a strict
interpretation, which requires that products are directly
aimed at substantial GHG-emissions reductions in other
sectors of the economy, not being customers down the
value chain. Therefore, none of the turnover was
considered eligible for this specific economic activity.
Similar to last year, ASM identified economic activities
that are described under the CE objective. The
cornerstone of ASM’s circular approach is the modular
design of our products, enabling a system to upgrade to
a higher performance level without replacing the entire
product. Extending the lifetime of ASM products is also
possible by repairing systems.
ASM's revenue can be broken down into sales of
systems, spare parts, and services. Within those
categories, ASM identified the revenue streams that are
associated with the following activities described in the
EU Taxonomy:
• 1.2 Manufacture of electrical and electronic
equipment, associated with ASM’s core activity of
manufacturing semiconductor wafer-processing
equipment;
• 5.1 Repair, refurbishment, and remanufacturing,
associated with ASM’s activity of parts refurbishment
and extending product lifecycles though upgrades or
refurbishment; and
• 5.2 Sale of spare parts, associated with the sale of
spare parts for systems manufactured by ASM.
No other material categories in relevant economic
activities were identified. As such, ASM reports that
90.6% of its turnover is eligible under the CE objective.
Compared to 2023 EU Taxonomy disclosure (91%), the
results are similar and consistent.
ASM employs a prudent approach in assessing which
economic activities could be eligible and potentially
aligned in the future under EU Taxonomy regulation. For
this reason, ASM does not include revenues from
installation and qualification as eligible activities,
although it is part of any equipment sale. This ASM
approach was strengthened by the latest Draft
Commission Notice released on November 29, 2024.
Capital expenditure (capex)
The KPI of capex encompasses certain ASM investments
during the financial year before amortization and re-
measurements. The total capex under the EU Taxonomy
consists of the following IFRS financial statement line
items:
• Additions in property, plant, and equipment (Note 3);
• Additions in intangible assets (Note 6); and
• Additions to right-of-use assets (Note 2).
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Appendix
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The other elements of the capex denominator in the
Disclosure Delegated Act are not applicable to ASM.
Through the assessment in 2024, it was concluded that
a large part of ASM’s capex relates to machinery and
equipment that is essential to ASM’s revenue-generating
activities. Since a significant portion of ASM’s revenue
can be directly associated with the activity 1.2
Manufacture of electrical and electronic equipment, as
outlined in Annex II (CE) of the Environmental Delegated
Act, asset classes linked to machinery and equipment
qualify for inclusion under this category. The eligible
amount considered by us includes the capitalized R&D
costs, expenses on machines and equipment, demo
equipment, tools for customer evaluation before a
purchase, and machines, equipment, computers, and
tools under construction.
Investments in buildings meet the definition of the
economic activity 7.7 Acquisition and ownership of
buildings, as specified in the Climate Delegated Act,
Annex I (CCM). Specifically, this activity includes
capitalized expenditure on buildings and right-of-use
assets, improvements, furniture and fixtures, as well as
buildings and leaseholds under construction.
No other material capital investments in relevant
economic activities were identified. As such, ASM
reports that 91% of capex is eligible under the CCM and
CE objectives.
In 2024 ASM updated our EU Taxonomy capex KPI
assessment by incorporating higher quality data and
adopting a more granular approach for calculating the
numerator. These updates are in line with the Draft
Commission Notice released on November 29, 2024,
and developing reporting practices, related to the
purchase of output from Taxonomy-aligned economic
activities. This has resulted in a more detailed and
accurate evaluation of our capital expenditures, better
aligning our investments with the EU Taxonomy criteria.
Due to these improvements, the share of capex activities
eligible under EU Taxonomy increased. In line with the
change of our methodological approach, we restated our
EU Taxonomy capex KPI for 2023 to €314 million (94%)
eligible but not aligned capex.
Operational expenditure (opex)
The opex KPI reporting under the EU Taxonomy focuses
on non-capitalized direct costs related to research and
development, building renovation measures, short-term
leases, maintenance and repair of buildings and
machinery, and other day-to-day servicing of assets
necessary for their continued effective functioning. The
opex denominator includes the following categories of
operational expenditure for ASM:
• Building maintenance expense;
• Machinery maintenance expense;
• Cleaning and housekeeping of ASM facilities;
• Facilities-repair expenses; and
• Non-capitalized R&D expenses.
The R&D and machinery maintenance expenses are
directly linked to ASM’s turnover-generating activity.
Consistent with the capex approach, these related
expenditures were consequently classified as eligible
under the target activity 1.2 Manufacture of electrical
and electronic equipment CE objective. In 2024, an
assessment revealed gaps in evaluating non-capitalized
R&D expenses, especially including staff cost directly
employed in R&D. Due to a change in this methodology
approach, we restated our EU Taxonomy KPI in 2023 to
€274 million (100%) eligible but not aligned opex.
In 2024, the assessment also concluded that building
maintenance, cleaning and housekeeping, and facilities
repair expenditures should be included in EU Taxonomy
disclosure. All these expenditures were identified as
economic activities eligible under 7.7 Acquisition and
ownership of buildings, as specified in the Climate
Delegated Act, Annex I (CCM).
No additional material operating expenditures in relevant
economic activities were identified. As such, ASM
reports that 100% of opex meets the eligibility criteria
under the CCM and CE objectives.
Looking forward
In 2025, ASM is preparing for the next phase of EU
Taxonomy reporting. As mentioned above, we aim to
resolve the current gaps in Minimum Safeguards
requirements, among others, in relation to policies
covering the entire reporting year. This is a critical step
in aligning our economic activities within the current EU
Taxonomy framework.
We conducted a comprehensive review of ASM policies
and practices against the OECD Guidelines for
Multinational Enterprises and the UN Guiding Principles
on Business and Human Rights, which resulted in our
inaugural Human Rights policy, published in Q4, 2024.
ASM has been performing an assessment of its current
initiatives related to the EU Taxonomy environmental
objectives to assess whether they support alignment
with Substantial Contribution criteria and Do No
Significant Harm (DNSH) criteria, as well as the Minimum
Safeguards. Certain gaps were identified in this
preliminary review.
ASM remains committed to enhancing sustainability
practices and ensuring transparency in our reporting.
Through ongoing assessments of our economic activities
and resolving gaps, we aim to better align with the EU
Taxonomy framework in the future.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
89
Turnover
Financial year N
2024
Substantial Contribution Criteria
DNSH criteria
Economic Activities (1)
Code (2)
Turnover (3)
Proportion of
Turnover, year N
(4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy
(9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum
Safeguards
Proportion of
Taxonomy-aligned
(A.1) or eligible
(A.2) Turnover, year
N-1 (18)
Category enabling
activity (19)
Category
transitional activity
(20)
mEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
n/a
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
—
0.0 %
0.0 %
of which Enabling
—
0.0 %
0.0 %
E
of which Transitional
—
0.0 %
0.0 %
T
A.2 Taxonomy-eligible but not environmentally sustainable (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacturing of electrical equipment
CE 1.2
2,252
77 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
79 %
Repair, refurbishment and remanufacturing
CE 5.1
48
2 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
1 %
Sale of spare parts
CE 5.2
357
12 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
11 %
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
2,657
91 %
0.0 %
0.0 %
0.0 %
0.0 %
90.6 %
0.0 %
91 %
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
2,657
91 %
0.0 %
0.0 %
0.0 %
0.0 %
90.6 %
0.0 %
91 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
276
9 %
Total
2,933
100.0 %
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
90
Capex
Financial year N
2024
Substantial Contribution Criteria
DNSH criteria
Economic Activities (1)
Code (2)
Capex (3)
Proportion of
CapEx, year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy
(9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum
Safeguards
Proportion of
Taxonomy-aligned
(A.1) or eligible
(A.2) CapEx, year
N-1 (18)
Category enabling
activity (19)
Category
transitional activity
(20)
mEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
n/a
Capex of environmentally sustainable activities
(Taxonomy-aligned)
—
0.0 %
0.0 %
of which Enabling
—
0.0 %
0.0 %
E
of which Transitional
—
0.0 %
0.0 %
T
A.2 Taxonomy-eligible but not environmentally sustainable (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Acquisition and ownership of buildings
CCM 7.7
67
18 % EL
N/EL
N/EL
N/EL
N/EL
N/EL
18 %
Manufacturing of electrical equipment
CE 1.2
279
74 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
76 %
Capex of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
346
91 %
18 %
0 %
0 %
0 %
74 %
0 %
94 %
A. Capex of Taxonomy-eligible activities (A.1+A.2)
346
91 %
18 %
0 %
0 %
0 %
74 %
0 %
94 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex of Taxonomy-non-eligible activities
33
9 %
Total
379
100 %
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
91
Opex
Financial year N
2024
Substantial Contribution Criteria
DNSH criteria
Economic Activities (1)
Code (2)
OpEx (3)
Proportion of OpEx,
year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy
(9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum
Safeguards
Proportion of
Taxonomy-aligned
(A.1) or eligible
(A.2) OpEx, year
N-1 (18)
Category enabling
activity (19)
Category
transitional activity
(20)
mEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Opex of environmentally sustainable activities
(Taxonomy-aligned)
0
0.0 %
0.0 %
of which Enabling
0
0.0 %
0.0 %
E
of which Transitional
0
0.0 %
0.0 %
T
A.2 Taxonomy-eligible but not environmentally sustainable (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Acquisition and ownership of buildings
CCM 7.7
6
2 % EL
N/EL
N/EL
N/EL
N/EL
N/EL
2 %
Manufacturing of electrical equipment
CE 1.2
319
98 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
98 %
Opex of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
325
100 %
2 %
0 %
0 %
0 %
98 %
0 %
100 %
A. Opex of Taxonomy eligible activities (A.1+A.2)
325
100 %
2 %
0 %
0 %
0 %
98 %
0 %
100 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Opex of Taxonomy-non-eligible activities
0
0.0 %
Total
325
100 %
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
92
21. Corporate governance
94
22. Management & Executive Committee
biographies
101
23. Supervisory Board bios
102
24. Supervisory Board report
103
25. Risk management
112
26. Remuneration report
116
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Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
93
Leadership and
governance
21. Corporate governance
ASM aspires to high standards of corporate governance
and ethics practices. Sound corporate governance is a
key component of our culture, behavior, and
management, and this is consistent with our core values:
We Care, We Innovate, We Deliver. Our corporate
governance is supported by a strong focus on integrity,
transparency, and clear and timely communication. This
aims to support our business and meet the needs of our
stakeholders.
We continue to review and update our policies and
procedures to comply with the applicable Dutch
corporate governance requirements – including the
Dutch Corporate Governance Code (the Code)13, and
other relevant laws and regulations – a dynamic and
evolving landscape with frequent updates and new
legislation, including in the field of corporate social
responsibility and sustainability. In chapter 36
(Declarations) we give an overview of where we deviate
from the Code and give the reasons for such deviations.
ASM continues to monitor applicable laws, regulations
and rules, and will be revising and enhancing its
constitutional documents and policies with a view to
ensure compliance with these.
Corporate governance framework
The corporate governance framework describes how we
embed ASM's strategy, mission, vision, and objectives
across our organization. Our Code of Business Conduct
(COBC) sets clear standards in different areas of
business life. Its purpose is to provide a clear, strong,
and consistent culture of ethics that applies to all at
ASM.
ASM’s policies and regulatory framework guide how we
work. Key components are our financial, ESG, IT, product
safety, environment, health and safety (EHS),
compliance, and business-continuity frameworks. These
are supported by transparency and accountability
through our business review cycles, our internal control
framework, and our performance management cycle.
Our risk management approach enables us to identify
and manage the strategic, operational, financial,
sustainability (including climate), and compliance risks to
which ASM is exposed. It also helps us develop even
more effective and efficient operations. It promotes
reliable financial and non-financial reporting and
compliance with laws and regulations, increasing
transparency and accountability.
Corporate governance-related documents are available
on our website, including:
• Supervisory Board Profile and skills matrix
• Supervisory Board Rules
• Management Board Rules
• Executive Committee Rules
• Audit Committee Charter
• Nomination, Selection and Remuneration Committee
Charter
• Technology Committee Charter
• Remuneration policy for the Management Board
• Remuneration policy for the Supervisory Board
• Code of Business Conduct
• SpeakUp! procedure (Whistleblower policy)
• Policy Communications and bilateral contacts with
shareholders
• Stakeholder dialogue policy
• Diversity, Equity & Inclusion policy
• Policy on prevention of fraud
• Rules concerning insider trading
Corporate governance framework
* Management Board, Executive Committee, and Supervisory Board
and its committees
Company structure
ASM International N.V. (with trade register number
30037466) is a limited liability company established
under Dutch law and is listed on Euronext Amsterdam. It
is a holding company and the parent company of the
ASM group of companies. The company's management
and supervision structure is organized in a two-tier
system, comprising a Management Board, composed of
two executive directors, and an independent
Supervisory Board, composed of seven independent
non-executive directors, which does not include an
employee representative. The company also has an
Executive Committee.
We conduct our business through wholly owned
subsidiaries, including ASM Front-End Manufacturing
Singapore Pte Ltd in Singapore, ASM Europe B.V. in the
Netherlands, LPE in Italy, ASM America Inc. in the United
States, ASM Japan KK in Japan, and ASM Korea Ltd. in
South Korea. The location of our facilities allows us to
interact closely with customers in the world’s major
geographical market segments: Europe, the United
States, and Asia.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
94
13 Available on www.mccg.nl. For a list of deviations from the Code, please see chapter 36
Declarations.
Transparency
& accountability
Risk &
performance
management
Policies &
regulatory
framework
Values &
ethics
Monitoring
& internal
control
Corporate
bodies*
Management Board and Executive
Committee
Management Board
The Management Board is responsible for the day-to-
day management of the company. The duties of the
Management Board are stipulated by law and
regulations, the company's Articles of Association and
the Code. It manages and is responsible for defining and
executing the strategy, including sustainable long-term
value creation and managing the risks associated
therewith. For more information on its responsibilities
see the paragraph 'Responsibility and accountability of
the Management Board' below.
When executing its tasks, it takes into account the
interests of ASM's stakeholders. The Management Board
has its own Rules of the Management Board as
published on the website. ASM’s Management Board has
divided the roles in line with the Articles of Association
and approval from the Supervisory Board. The
Management Board meets regularly to discuss, evaluate,
and review the performance of the company. The
Management Board held various meetings throughout
2024.
For certain matters, for example amending the Articles of
Association and the issuance and repurchase of shares,
the Management Board requires approval from the
Supervisory Board, the General Meeting or both, in each
case as set out in Dutch law, the company's Articles of
Association and the Rules of the Management Board.
Appointment of Management Board members
The General Meeting appoints a Management Board
member based on a binding nomination drawn up by the
Supervisory Board. The decision to nominate a member
to the Management Board follows from the
recommendation by the Nomination, Selection and
Remuneration (NSR) Committee. When considering
candidates for the Management Board, the NSR takes
into account the company's Diversity, Equity & Inclusion
(DE&I) policy and the Rules of the Management Board.
The General Meeting may set aside a binding nomination
by a resolution taken with an absolute majority of the
votes cast, representing at least one third of the share
capital. If such a binding nomination is set aside, a new
binding nomination will be drawn up by the Supervisory
Board and submitted to a newly called General Meeting.
If such binding nomination is also set aside, the General
Meeting is free to appoint a Management Board
member, but only with an absolute majority of the votes
cast representing at least one third of our issued share
capital.
Members of the Management Board are appointed for a
maximum term of four years, expiring at the close of the
Annual General Meeting held at the end of the term for
which the member of the Management Board is
appointed. Members of the Management Board may be
reappointed.
All members of the Management Board have entered
into a management services agreement (MSA) for the
term of their assignment. The MSA also contains specific
provisions with respect to severance payments in the
event of termination in line with the Code. Reference is
made to the Remuneration report (see chapter 26 of this
Annual Report).
Suspension or dismissal of Management Board members
The Supervisory Board may suspend a Management
Board member at any time. In addition, a Management
Board member may, in accordance with a proposal by
the Supervisory Board, be dismissed by the General
Meeting through a majority vote representing at least
one third of the issued capital. A resolution to suspend or
dismiss a member of the Management Board, other than
in accordance with a proposal of the Supervisory Board,
requires the affirmative vote of a majority of the votes
cast at a meeting. These votes must represent at least
one third of the issued capital.
Executive Committee
Appointment of other Executive Committee members
The Executive Committee comprises the Management
Board members, as well as other senior executives.
These senior executives are appointed by the
Management Board following consultation with the
Supervisory Board and further to the Rules of the
Executive Committee and ASM’s Diversity, Equity &
Inclusion (DE&I) policy. The same applies with respect to
the Executive Committee's size and composition.
Suspension or dismissal of Executive Committee
members
The Management Board may suspend or dismiss a
member of the Executive Committee subject to
consultation with the Supervisory Board.
Tasks and responsibilities of the Executive Committee
The Executive Committee's responsibilities are divided
based on business and functional areas, each of which
will be reviewed regularly. The current business and
functional areas are: sales, global operations and supply
chain, products, and people. The Executive Committee
has its own Rules of the Executive Committee as
published on the website.
The Executive Committee shall assist the Management
Board in managing the company, in particular with the
day-to-day management, including driving the strategic
agenda, and in respect of compliance, leadership,
culture, and sustainability.
The Management Board may delegate one or more
specific tasks and duties to one or more Executive
Committee members. The Executive Committee shall be
guided by the interests of the company and its
stakeholders in executing its tasks, taking the interests
of all stakeholders into account. The Executive
Committee members are accountable and report to the
Management Board.
The Executive Committee is chaired by the Chief
Executive Officer (CEO) and meets on a regular basis. In
2024, the Executive Committee met five times,
sometimes in sessions taking multiple days. Meetings
took place in person as well as via video call, taking into
account sustainability and costs. All of the then current
Executive Committee members attended the meetings.
Meetings of the Executive Committee may be combined
with Management Board meetings if so decided. The
Management Board shall regularly, but at least once a
year, review and assess the effectiveness of the
Executive Committee's governance structure.
In 2024, the Executive Committee discussed market
developments, investments and investment
opportunities, strategic projects, succession planning of
senior leaders, financials, cost reductions, global
operations and the organization thereof, export controls,
employee engagement and ASM’s culture, the employee
value proposition, and Diversity, Equity and Inclusion
strategy, also in conjunction with its core values.
ASM focuses on developing a workplace that fosters
Accountability, Collaboration and Empowerment (ACE),
which the Management Board believes contributes to
sustainable long-term value creation. For more, see
chapter 17. Sustainability was also a recurring topic,
including the effect ASM’s products, services, and
activities have had on people and the environment,
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Financial statements
Appendix
ASM Annual Report 2024
95
stakeholder management, and sustainability objectives.
For more, see chapter 15.
Responsibility and accountability of the
Management Board
Regardless of the activities of the Executive Committee
and its role, the Management Board remains collectively
responsible and accountable for the management of ASM.
Its members are collectively and individually accountable
to the Supervisory Board and the General Meeting for
executing its responsibilities. The Management Board and
the Executive Committee are responsible for providing the
Supervisory Board with all the information it needs to fulfil
its obligations and exercise its powers, and the General
Meeting with all information it needs to exercise its
powers in a timely fashion.
The Management Board is also responsible for the
quality and completeness of financial, sustainability, and
other (non-financial) reports that are publicly disclosed
by or on behalf of the company, including all reports and
documents the company is required to file. In addition to
the duties of the Management Board stipulated by law
and regulations and our Articles of Association, the
Management Board has the following responsibilities:
• Achieving the aims, strategy for sustainable long-term
value creation, policy, and results of ASM;
• Management of the operational, organizational, and
financial objectives;
• The risk management framework, including managing
the risks associated with the activities of ASM culture;
• Ensuring proper financing of ASM;
• Establishing and maintaining disclosure controls and
procedures that make sure all major financial
information is known to the Management Board so
that the external financial reporting is achieved in a
timely, complete, and accurate manner; and
• Determining relevant aspects and achieving aims
relating to ESG and sustainability and reporting thereon
in accordance with applicable laws and regulations.
Supervisory Board
The Supervisory Board supervises and advises the
Management Board and Executive Committee in the
execution of their tasks and responsibilities. The
members of the Supervisory Board are guided by the
interests of the company and its affiliates, through which
the interests of the stakeholders are taken into account.
Independence of the Supervisory Board
Under Dutch law, the Supervisory Board is a separate
body independent of the Management Board, which
constitutes a so-called two-tier structure.
The members of the Supervisory Board assess their
independence on an annual basis as set out in the Code,
and confirm this in writing. All members of the
Supervisory Board are to be regarded as independent on
December 31, 2024.
Tasks and responsibilities of the Supervisory Board
The Supervisory Board supervises and advises the
Management Board and Executive Committee in
executing their responsibilities, in particular regarding:
• The achievement of the company’s objectives;
• The corporate strategy and the risks inherent in the
business activities;
• The structure and operation of the internal risk;
management and control systems;
• The financial reporting process;
• The non-financial and sustainability reporting process;
• The compliance with legislation and regulations;
• The relation of the company to its shareholders; and
• The relevant aspects of ESG and sustainability-
related matters.
Apart from supervising and advising, the Supervisory
Board must also approve important decisions by the
Management Board. Such approvals include – but are
not limited to – those with respect to: defining objectives
of the company’s strategy, issuance and repurchasing of
ASM shares, a proposal to the General Meeting to
amend the Articles of Association, important acquisitions
and mergers, and dividend payments. The Management
Board, and where needed and so decided, the Executive
Committee, provide all the information needed to be able
to make these decisions. This allows the Supervisory
Board to carry out its duties properly.
In addition to its supervision and advising role, the
Supervisory Board establishes the Management Board
members' individual remuneration, within the boundaries
of the Remuneration policy for the Management Board
approved by the General Meeting and the
recommendations by the Nomination, Selection and
Remuneration (NSR) Committee.
Appointment and dismissal of Supervisory Board
members
The members of the Supervisory Board are appointed by
the General Meeting following a binding nomination
drawn up by the Supervisory Board. The General
Meeting may overrule the binding nature of a binding
nomination at a General Meeting by an absolute majority
of the votes cast, representing at least one third of the
issued share capital. In that event, the Supervisory Board
may draw up a new binding nomination to be submitted
to a subsequent General Meeting. Should such a second
nomination also be deprived of its binding character,
then the General Meeting shall be free to appoint a
member, provided that such a resolution shall require an
absolute majority of the votes cast, representing at least
one third of the company’s issued capital. In the event
the second binding nomination is overruled without the
required proportion of the capital represented – but an
absolute majority of the votes cast was in favor of
overruling the binding nomination – then a new General
Meeting shall be convened, at which the resolution may
be passed by an absolute majority of the votes cast.
The appointment of a Supervisory Board member is for a
period of maximum four years and will last until the
General Meeting at the end of the term. For
reappointment, the candidate’s performance during the
previous period shall be taken into account.
A Supervisory Board member who is available for
reappointment must be interviewed by the Chair of the
Supervisory Board and the Chair of the NSR Committee.
The Chair of the NSR Committee must be interviewed by
the Chair of the Supervisory Board. Following a first
term, a member may be reappointed for a subsequent
term of four years. Subsequently, a member who has
served eight years on the Supervisory Board may be
appointed for another two-year period, followed by
another period of two years. However, the Supervisory
Board must provide the reasons for such reappointment
after eight years. The rotation schedule of the
Supervisory Board members is included on the next
page.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
96
A member of the Supervisory Board may at any time be
suspended or dismissed by the General Meeting. A
resolution to suspend or dismiss a Supervisory Board
member, other than in accordance with a proposal of the
Supervisory Board, shall require an absolute majority of
the votes cast representing at least one third of ASM’s
issued capital. If, however, the required proportion of the
capital is not represented, but an absolute majority of
the votes cast is in favor of a resolution to suspend or
dismiss a Supervisory Board member, a new meeting
shall be convened at which the resolution may be
passed by an absolute majority of the votes cast,
regardless of the proportion of the capital present at the
meeting
All members of the Supervisory Board follow an
induction program after their first appointment, in which
financial, legal, financial reporting, and specific features,
including technological, are taken into consideration.
Supervisory Board composition
In accordance with Dutch law and the Code, the
Supervisory Board has drawn up a profile for its own
composition. This Supervisory Board Profile is available
on our website. For the selection of future members of
the Supervisory Board, the Supervisory Board seeks
candidates that support the realization of diversity as per
the criteria mentioned therein, as well as in ASM’s
Diversity, Equity & Inclusion (DE&I) policy available on our
website, and complies with the diversity requirements in
the Dutch Civil Code. Any appointment or reappointment
to the Supervisory Board shall be based on the
candidate’s match with the Supervisory Board Profile. In
case of a vacancy in the Management Board, the
Supervisory Board prepares a profile based on the
required educational and professional background. In the
search, it will seek candidates that support the
realization of diversity on the criteria set out in the DE&I
policy.
The Rules of the Supervisory Board are available on our
website. The Supervisory Board determines the number
of members required. The members should operate
independently of each other. The Supervisory Board as a
whole must be experienced in the management of an
international, publicly-listed company, and have
sufficient time available to fulfill the role. Moreover, the
Supervisory Board members appoint a Chair from among
themselves. The Supervisory Board currently consists of
seven members. In 2024, Monica de Virgiliis retired and
Tania Micki and Martin van den Brink became members.
Supervisory committees
To more efficiently fulfill its role, and in compliance with
the Code, the Supervisory Board currently has three
committees: the Audit Committee, the NSR Committee,
and the Technology Committee. The Supervisory Board
may expand the number of committees as it deems
appropriate in the discharge of its duties. The committees
assist the Supervisory Board in performing its duties.
Committees structure and members
Name
Audit Committee
Nomination,
Selection and
Remuneration
Committee
Technology
Committee
Supervisory Board
P.F.M. van der Meer Mohr
M
M
C
M.A. van den Brink
M
C
M
S. Kahle-Galonske €
C
M
M
M.J.C. de Jong
M
M
M
D.R. Lamouche
C
M
VC
T. Micki €
M
M
A.T. Sanchez
M
M
M
C Chair M Member € Financial expert VC Vice Chair
Note: Ms De Virgiliis was part of the Audit Committee and
Supervisory Board until the expiry of her term in May 2024.
Audit Committee
The Audit Committee assists the Supervisory Board in its
responsibility to oversee, among others, ASM’s financing,
financial statements, financial reporting process, non-
financial and sustainability reporting, and system of
internal business controls, risk management and internal
audit function. The Audit Committee also advises the
Supervisory Board on the nomination of the external
auditor of the company.
The Audit Committee consists of:
• Stefanie Kahle-Galonske (Chair)
• Martin van den Brink
• Marc de Jong
• Pauline van der Meer Mohr
• Tania Micki
The Audit Committee supervises the activities of the
Management Board and fulfills its supervision
responsibilities with respect to:
• Integrity and quality of ASM’s financial statements.
• Release of financial information.
• Accounting and financial-reporting processes and the
audits of the financial statements.
• Release of sustainability reporting.
• Effectiveness and operation of the internal risk
management and control systems, including
supervision of the enforcement of the relevant
legislation and regulations and supervising the
operation of codes of conduct, the internal audit
function regarding the financial reporting and where
applicable the sustainability reporting, including its
electronic reporting process.
• Applications of information and communication
technology.
• Financing of the company.
• How sustainability commitments impact the ASM’s
financial statements.
• Compliance with recommendations and observations
of internal and external auditors.
• Relations with the internal and external auditor and
any other party involved in auditing the sustainability
reporting, including, in particular, its qualifications,
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
97
Supervisory Board rotation schedule
Name
Position
Nationality
Year of birth
Initial appointment
Term expires
Pauline F.M. van der Meer Mohr
Chair
Dutch
1960
2021
2025
Martin van den Brink
Member
Dutch
1957
2024
2028
Stephanie Kahle-Galonske
Member
German-Swiss
1969
2017
2025
Marc J.C. de Jong
Member
Dutch
1961
2018
2026
Didier R. Lamouche
Vice - Chair
French
1959
2020
2028
Tania Micki
Member
Swiss-French
1971
2024
2028
Adalio T. Sanchez
Member
United States
1959
2021
2025
performance, independence, remuneration, and any
non-audit services performed for the company.
The Audit Committee meets periodically to:
• consider the adequacy and effectiveness of the
internal risk management and control procedures;
• Review the operating results with management and
the external auditors.
• Review the scope and results of the audit with the
external auditors.
• Review the scope and results of internal audits with
internal audit.
• Review performance evaluations relating to the
auditor’s independence.
• Review performance and services of the external
auditor.
• Review adequateness of the financing structure and
tax structure of the company.
The Chief Executive Officer, Chief Financial Officer,
Senior Director Internal Audit, Vice President Group
Control, and representatives of the external auditor are
invited to, and also attend, the Audit Committee
meetings.
Ms. Kahle-Galonske, Chair of the Audit Committee and
member of the Supervisory Board, and Ms. Micki, who
will become the Audit Committee Chair in 2025, are the
financial experts, taking into consideration their
extensive financial background and experience. The
Charter of the Audit Committee is available on the ASM
website.
Nomination, Selection and Remuneration (NSR)
Committee
The NSR Committee advises the Supervisory Board on
matters relating to the selection and nomination of the
members of the Management Board and Supervisory
Board. Also, the Management Board consults the NSR
Committee on the appointment and dismissal of
members of the Executive Committee and discusses the
remuneration of the Executive Committee with the NSR
Committee. Moreover, the NSR Committee is entrusted
by the Supervisory Board to prepare and review
onboarding of new Management Board and Supervisory
Board members, training of the Supervisory Board,
culture and diversity and inclusion matters within ASM.
The NSR Committee further designs, monitors and
evaluates the Remuneration policy for the Management
Board and the Remuneration policy for the Supervisory
Board. Moreover, the NSR Committee is entrusted with
the preparation of the self-evaluation of the Supervisory
Board and its committees and the performance
evaluation of the Management Board members.
The NSR Committee consists of:
• Didier Lamouche (Chair)
• Pauline van der Meer Mohr
• Adalio Sanchez
• Stefanie Kahle-Galonske
The NSR Committee makes sure that a competitive
remuneration structure is provided by benchmarking
with other multinational companies of comparable size
and complexity operating in comparable geographical
and industrial markets. The NSR Committee evaluates
the achievement of performance criteria specified per
Management Board member. After the evaluation, it
recommends the level of remuneration to the
Supervisory Board.
On an annual basis, the NSR Committee reports to the
Supervisory Board on the application of the
Remuneration policy in the previous year, and
recommends the Remuneration policy and Remuneration
report for the following years.
The CEO and the Senior Vice President Global People
are invited to, and also attend, the NSR Committee
meetings, except that the NSR occasionally also meets
with only NSR members. It is noted that the CEO in
principle does not take part in meetings relating to his
own remuneration.
The Charter of the NSR Committee is available on our
website.
Technology Committee
The Technology Committee assists the Supervisory
Board in its responsibility to oversee, among others, the
technology aspects of ASM’s business strategy, i.e.
technology trends and investments required, technical
resources and operational performance in R&D, as well
as ASM’s annual R&D budget and material technology
investments brought forward by the Management Board.
The Technology Committee consists of:
• Martin van den Brink (Chair)
• Didier Lamouche
• Adalio Sanchez
• Marc de Jong
Without prejudice to the collegiate responsibility of the
Supervisory Board, also for all decisions taken by the
Technology Committee, the Technology Committee is
responsible for advising the Supervisory Board in relation
to any of the following matters and proposed
resolutions:
• Periodically overseeing the R&D budget and the
decisions what projects to invest in.
• Reviewing the technology plans required to execute
ASM’s business strategy.
• Making recommendations to the Supervisory board on
products and technology strategy brought by the
Management Board to the Supervisory Board.
• Periodically overseeing the intellectual property
portfolio and risk profile.
• Reviewing the technology-related aspects of
investments brought to the Supervisory Board (which
may include, but not be limited to, acquisitions of
legal entities).
• Performing any other activities related to technology
as the Supervisory Board shall specifically delegate to
it from time to time.
The Charter of the Technology Committee is available on
our website.
Diversity, equity, and inclusion
The Supervisory Board attaches value to diversity among
its members and the members of the Management Board
and the Executive Committee, as further set out in ASM's
DE&I policy. As set out above, in the case of open
positions on the Supervisory Board or Management
Board, the Supervisory Board prepares a profile based on
the required educational and professional background.
While the final selection is based on merit, in the search it
will seek candidates that support the realization of
diversity against the criteria set out in the policy.
Pursuant to the Dutch Civil Code:
• For Dutch companies listed on Euronext Amsterdam,
a quota of at least one-third for both women and men
on their supervisory boards apply. If a new
appointment does not contribute to the gender
balance, such appointment will in principle be
declared invalid (null and void) if the company has not
yet met the one-third quota.
• All large companies that meet the criteria set out in
the Dutch Civil Code will need to set appropriate and
ambitious gender-balance targets for the
management board, supervisory board and other
senior management. What the latter category consists
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
98
of, is up to the company to determine. Moreover,
these large companies will need to have an action
plan to achieve such targets. In addition, they will
need to report annually to the Dutch Social Economic
Council on the total number of men and women on
the supervisory board, management board, and other
senior management, the annual targets, and the
aforementioned action plan.
Under the Code, companies are required to implement a
broader diversity and inclusion policy. The policy should,
in any case, set specific, appropriate, and ambitious
targets in order to achieve a good balance in gender
diversity and other company-relevant diversity and
inclusion aspects with regard to the composition of the
Management Board, the Supervisory Board, the
Executive Committee and a category of employees in
management positions ('senior management') to be
determined by the Management Board.
ASM has defined the 'senior management' as referred to
above as any person holding the position of 'Director'
and up. In February 2024, ASM published its updated
Diversity, Equity & Inclusion (DE&I) policy, including the
aforementioned targets. Refer to Section 17.2 for more
information.
2024 gender-diversity numbers
The Supervisory Board has discussed diversity with the
Management Board, including gender diversity. For more
information on the targets adopted for the male and
female composition of the Supervisory Board,
Management Board, Executive Committee, and senior
management for 2024, as well as the actual numbers
and the percentages and the plans to meet these
targets, see section 17.2.
Based on the composition of our Supervisory Board, we
have reached our target of 33% of the seats being held
by either gender at the same time in the Supervisory
Board, currently the gender percentage is at 42.9%
female members. Our Management Board currently
stands at 100% male participation (also target of 33% of
the seats being held by either gender at the same time).
We have achieved diversity of background, with
members of the Management Board having varied
cultural and ethnic backgrounds, knowledge, skill sets,
education, work background, and national origins, to
name a few. In case of open positions in the
Management Board, the Supervisory Board prepares a
profile based on the required educational and
professional background and in the search will seek for
candidates that support the realization of diversity on
the earlier mentioned criteria, including gender, with the
final selection being based on merit.
The Executive Committee consists of one female
member, and six male members. When the Executive
Committee was established in February 2022, it was
actually a formalization of the status quo, not a selection
of new senior executives. This also means that there
was no specific target for the Executive Committee at
the time. In 2024, two new Executive Committee
members were appointed from internal candidates. They
already have the most senior positions in their area of
expertise.
General Meeting
ASM’s shareholders exercise their rights through Annual
and Extraordinary General Meetings. ASM is required to
convene an Annual General Meeting in the Netherlands
each year, no later than six months after the end of the
company’s financial year, ending for ASM on December
31 of each year. This allows the shareholders to discuss
the financial statements, management report, and any
topics related to applicable laws and regulations. The
Supervisory Board or Management Board may convene
additional Extraordinary General Meetings at any time.
The convocation date is legally set at 42 days prior to
the date of the General Meeting.
The voting results are generally published on the ASM
website within one week following the relevant Annual or
Extraordinary General Meeting. The draft minutes of the
meeting are published on the same site within three
months following the meeting. In the event that no
comments are received, the minutes are signed by the
Chair of the Supervisory Board and the secretary of the
meeting and made final.
Powers
The powers of the General Meeting are defined by Dutch
law, the Code, and our Articles of Association. The main
powers of the General Meeting are to:
• Appoint, suspend, and dismiss members of the
Management Board and Supervisory Board;
• Approve the financial statements; declare dividends;
adopt the Remuneration policy of the Management
Board and Supervisory Board;
• Discharge the Management Board and Supervisory
Board from responsibility for the performance of their
respective duties for the previous financial year;
• Appoint the external auditors;
• Approve amendments to the Articles of Association
after a proposal of the Management Board and the
Supervisory Board (a copy of the proposed
amendment will be available for inspection by every
shareholder at the office of ASM free of charge);
• Authorize the Management Board to issue shares and
grant subscriptions for shares;
• Authorize the Management Board to withdraw
preemptive rights of shareholders upon issuance of
shares; and
• Authorize the Management Board to repurchase or
cancel outstanding shares.
Voting rights
At the General Meeting, each ordinary share with a nominal
value of €0.04 entitles the holder to cast one vote, each
financing preferred share with a nominal value of €40
entitles the holder to cast 1,000 votes, and each preferred
share with a nominal value of €40 entitles the holder to cast
1,000 votes. Pursuant to Dutch law, no votes may be cast at
a General Meeting in respect of treasury shares, i.e. shares
which are held by the company.
There were no preferred or financing preferred shares
issued on December 31, 2024. Financing preferred
shares are designed to allow ASM to finance equity with
an instrument paying a preferred dividend, linked to
Euribor loans and government.
The record date is legally set at 28 days prior to the date
of a General Meeting. Those who are registered as
shareholders at the record date are entitled to attend
the meeting and exercise voting rights. Shareholders
may be represented by written proxy.
2024 Annual General Meeting
ASM held its Annual General Meeting on May 13, 2024. It
was organized as a physical meeting, so shareholders
could attend in person. Shareholders were also given the
opportunity to vote through different means: (i) by
providing a power of attorney with voting instructions
prior to the meeting and (ii) electronically during the
meeting while present in person. The attendance rate
was 78.07% of the total issued share capital of ASM as
at the registration date. The voting results and the
minutes of the Annual General Meeting – and other
Annual and Extraordinary General Meetings – are
published on our website.
During the Annual General Meeting of 2024, it was
resolved to authorize the Management Board to issue
shares or to grant rights to acquire up to 10% of the
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
99
outstanding shares in ASM as well as to restrict or
exclude the pre-emption rights. This is, however, subject
to approval by the Supervisory Board, and the
authorization applies for 18 months.
ASM shares
ASM’s common stock trades on the Euronext Amsterdam
Stock Exchange (symbol: ASM). ASM common shares,
which are held in the United States as New York Registry
Shares, trade on the OTC market.
The company's authorized capital amounts to
82,500,000 common shares of €0.04 par value, 88,500
preferred shares of €40 par value, and 6,000 financing
preferred shares of €40 par value. As at December 31,
2024, there were 49,328,548 common shares issued
and fully paid.
Preferred and financing preferred shares
Preferred and financing preferred shares may be issued
in registered form only and are subject to transfer
restrictions. Essentially, a preferred or financing
preferred shareholder must obtain the approval of the
ASM Supervisory Board to transfer shares. If the
approval is denied, the Supervisory Board will provide a
list of acceptable prospective buyers who are willing to
purchase the shares at a cash price agreed by the
Supervisory Board and the seller within two months of
the approval being denied. If the transfer is approved,
the shareholder must complete the transfer within three
months, after which time the approval expires.
Preferred shares are entitled to a cumulative preferred
dividend based on the amount paid up on such shares.
Financing preferred shares are entitled to a cumulative
dividend based on the par value and share premium paid
on such shares.
Stichting Continuïteit agreement
ASM is party to an agreement with Stichting Continuïteit
ASM International (Stichting), pursuant to which the
Stichting is granted an option to acquire up to a number
of our preferred shares corresponding with a total par
value equal to 50% of the par value of our common
shares issued and outstanding at the date of the
exercise of the option. The Stichting is a non-
membership foundation organized under Dutch law. The
objective of the Stichting is to serve the interests of
ASM. For that objective, the Stichting may, among other
things, acquire, own, and vote on preferred shares.
The members of the board of the Stichting are:
• Dick Bouma (Chair), retired Chair of the Board of Pels
Rijcken & Droogleever Fortuijn
• Rinze Veenenga Kingma, President of Archeus
Consulting B.V.
• Elsbeth van Rhijn, lawyer
• Gosse Boon, (non-) executive board member and
(lay) judge (expert member) at the Enterprise Court/
Chamber Amsterdam.
The purpose of the above-mentioned option is to protect
the independence, continuity, and identity of ASM
against influences that are contrary to the interests of
ASM, its enterprise, and the enterprises of all its
subsidiaries and stakeholders.
Other than the above, the company has not established
any other anti-takeover measures.
Conflicts of interest
As provided for in the Rules of the Supervisory Board, a
Supervisory Board member facing a conflict of interest,
potential or otherwise, shall inform the Chair of the
Supervisory Board immediately. The course of action
shall be discussed in consultation with the other
members of the Supervisory Board. The member facing
the possible conflict of interest shall not be part of these
discussions.
Each Management Board member shall immediately
report any potential conflict of interest to the Chair of
the Supervisory Board and to the other Management
Board members. In such cases, a Management Board
member shall provide the Chair of the Supervisory Board
and the other Management Board members with all
information relevant to the conflict, and follow the
procedures as set out in the Rules of the Management
Board.
The provisions of the Rules of the Management Board
regarding conflict of interest of Management Board
members shall apply mutatis mutandis to members of
the Executive Committee, provided however that a
member of the Executive Committee not being a
Management Board member, shall report any potential
conflict of interest to the CEO. In addition, an Executive
Committee member shall not participate in the
deliberation and/or any decision-making, if his/her
participation and/or decision-making would be contrary
to applicable legislation, regulations and/or internal
policies.
Publication in English
The Annual Report, the financial statements, and other
regulated information as defined in the Dutch Act on
Financial Supervision ('Wet op het financieel toezicht')
will only be published in English on our website.
External relations
At ASM we believe that an open dialogue with our
external stakeholders is important. We provide accurate
and timely information through, among other things,
press releases, our annual reports, quarterly earnings
calls and webcasts, and meetings. At these meetings we
discuss the company strategy and performance, and
request input for our materiality assessment. These
meetings often include investors. Reference is made to
the policy regarding communications with shareholders,
which can be found on our website. Moreover, ASM has
adopted a Stakeholder dialogue policy, which can be
found on our website, which covers interactions with
internal and external stakeholder groups, specifically on
the sustainability aspects of ASM’s strategy. It provides a
non-exhaustive overview of touchpoints between ASM
and its stakeholders and covers its approach to
engagement.
Risk management and control framework
The Management Board ensures that the company has
an adequately functioning internal risk management and
control framework. A comprehensive risk management
and control framework, based on the 'three lines of
defense model', has been established. This provides the
Audit Committee and the Management Board with a
clear overview of the effectiveness of internal controls
and risk management. For more, see chapter 25. The
Management Board periodically discusses the internal
risk-management and control systems with the
Supervisory Board and the Audit Committee.
Remuneration
During the Annual General Meeting, which took place on
May 13, 2024, a new Remuneration policy was adopted
for the Supervisory Board. In 2023, the Annual General
Meeting adopted a new Remuneration policy for the
Management Board.
For information regarding the remuneration of the
Management Board, see the Remuneration policy of the
Management Board posted on our website, the
Remuneration report (chapter 26), and Note 26 to the
consolidated financial statements.
For information regarding the remuneration of the
Supervisory Board, see the Remuneration policy of the
Supervisory Board posted on our website, chapter 26,
and Note 26 to the consolidated financial statements.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
100
22. Management & Executive Committee biographies
Hichem M’Saad
Chairman of the Management
Board and CEO
Male, US and Tunisian, 1965
Initial appointment 2022
Term expires 2026
Other positions:
•
ASMPT Ltd, Non-executive
Director
Prior experience:
•
Applied Materials, several
positions, Corporate Vice
President and General Manager
of the DSM and CMP divisions
•
CEO of a start-up in the solar
photovoltaic industry
Paul Verhagen
Member of the Management
Board and CFO
Male, Dutch, 1966
Initial appointment 2021
Term expires 202514
Other positions:
•
ASMPT Ltd, Non-executive
Director
•
Delft University of Technology,
Member Supervisory Board
•
PSV, Member Supervisory
Board
Prior experience:
•
Royal Philips, several CFO
positions
•
Fugro, CFO and Member
Management Board
Brian Birmingham
Senior Vice President Global
Sales
Male, US, 1968
Prior experience:
•
Lam Research, Corporate VP
and General Manager
•
Various VP positions at
semiconductor equipment
manufacturers supporting both
logic/foundry, MtM and memory
customers
Edyta Jakubek
Senior Vice President Global
People; Chief People Officer
Female, Polish, 1974
Prior experience:
•
Royal Philips, various senior HR
positions
•
Akzo Nobel, Global Head of HR
of the Paints & Coating
•
Heineken, Head of HR Region
Europe, Senior Vice President
Paul Ma
Corporate Vice President
Thermal ALD and VF
Male, US, New Zealand and
Taiwanese, 1976
Prior experience:
•
Applied Materials, several
positions, Managing Director
and KPU head of the Metal
Deposition Products division
Steven Reiter
Corporate Vice President
Plasma and Epi
Male, US, 1975
Prior experience:
•
Applied Materials, several
positions, supporting dielectric
CVD film development and
customer qualification in various
areas, including SACVD, PECVD,
and low-k ILD/barrier
Kent Rossman
Senior Vice President Global
Operations
Male, US, 1969
Prior experience:
•
Applied Materials, Vice
President in charge of business
management for chemical
mechanical polishing and
packaging, plating and cleans
product families, business
development for new markets
and alliances
•
Head of Sourcing for global
services and spares group
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
101
14 In its press release of December 10, 2024, the company announced the Supervisory Board's intention to nominate him for reappointment for two years.
Management Board
Executive Committee
23. Supervisory Board bios
Pauline van der Meer Mohr
Chair
Female, Dutch, 1960
Initial appointment 2021
Term expires 202515
Other current positions:
• Deputy chair Supervisory
Board NN
• Member Supervisory Board
Ahold Delhaize
Martin van den Brink
Member
Male, Dutch, 1957
Initial appointment 2024
Term expires 2028
Other positions:
• Advisor to ASML
• Advisor to IMEC
Until his retirement in 2024, he
was Chief Technology Officer
and President of ASML and key
to driving ASML’s growth and
technological innovations.
Marc de Jong
Member
Male, Dutch, 1961
Initial appointment 2018
Term expires 2026
Other positions:
• Member Supervisory Board
Fugro N.V.
• Member Supervisory board
Nissens A/S
• Member Supervisory Board
FiberSail SA
• Chair Supervisory Board
BDR Thermea Group B.V.
Chair Advisory Board Sioux
B.V.
Stefanie Kahle-Galonske
Member
Female, German/Swiss, 1969
Initial appointment 2017
Term expires 202515
Principal position:
• Group CFO Egon Zehnder
International AG
Other positions:
• Non-executive Member
Supervisory Board Smart
Photonics B.V.
Didier Lamouche
Vice-Chair
Male, French, 1959
Initial appointment 2020
Term expires 2028
Other positions:
• Non-executive Director
Board Adecco
• Chair Advisory Board
Utimaco
• Director Imagination
Technologies Group Ltd.
• Non-executive Board Chair
Quadient
Tania Micki
Member
Female, Swiss/French, 1971
Initial appointment 2024
Term expires 2028
Principal position:
• CFO and Member of the
Management Board Tecan
Other positions:
• Non-executive Member of
the Board of Directors Ecole
Hôtelière
Adalio Sanchez
Member
Male, US, 1959
Initial appointment 2021
Term expires 202515
Other positions:
• Non-executive Member
Board of Directors Avnet,
Inc.
• Non-executive Board Chair
ACI Worldwide, Inc.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
102
15 In its press release of December 10, 2024, the company announced the Supervisory Board's intention to nominate these members for reappointment for four years and nominate Ms Kahle-Galonkse for reappointment for one year given her unique skill set and to ensure a smooth
transition of her role of Chair of the Audit Committee to Tania Micki
24. Supervisory Board report
24.1 Message of the Chair
Dear stakeholder,
For ASM, 2024 was another memorable year in which
the company’s dynamic teams around the world
collaborated to drive innovation, pioneer breakthrough
technologies, deliver impressive results, and outperform
the markets. True to its tagline, at every step, ASM
stayed ahead of what’s next.
From artificial intelligence (AI) applications to gate-all
around (GAA) technology, and from high-bandwidth-
memory (HBM) devices to advances in ALD, epitaxy, and
beyond – ASM’s key strengths and its clear focus on
next-generation deposition technologies make it a true
industry leader and key driver for the digital revolution.
On a personal note, I was happy to have the opportunity
this year to see some of these innovations up close by
participating in training sessions involving technology
developments, including opportunities for ASM, and
more.
Leadership changes
A notable change in 2024 was Benjamin Loh's retirement
as ASM’s CEO and Chairman of the Management Board.
We are grateful for everything he achieved for ASM
during his term. We are equally pleased that we found a
worthy successor in Hichem M’Saad, who has already
played a prominent role in many of ASM’s technology
breakthroughs – first as executive vice president and
general manager of Global Products and then, since
2022, as Chief Technology Officer and member of the
Management Board. We are confident that ASM is ready
for the future under his leadership. The changes he has
made to the organization so far have been impressive
and inspiring.
The Executive Committee was enhanced by two
additional members: Paul Ma (Corporate Vice President
Thermal ALD and VF) and Steven Reiter (Corporate Vice
President Plasma and Epi). As they bring invaluable
experience on ASM’s key product lines to the Executive
Committee, we are pleased to see that our core
technologies will be prominently represented within the
company and its leadership.
Developing tomorrow’s leaders
ASM has been growing rapidly in recent years and its
ambitions for further growth are as high as ever. That’s
why, at Supervisory Board meetings, leadership and
succession planning have been recurring themes for
many years. We applaud the Executive Committee’s
initiatives in this field in 2024: leadership training for all
leaders, a specific program for junior to mid-level talents,
and a special program for female leaders.
Our people, our culture
Over the year, my board members and I travelled to
ASM’s offices in Italy and Singapore, as well as the
corporate headquarters in the Netherlands. We were
pleased to personally meet many ASMers at the different
sites and greatly appreciated the opportunity to talk to
them in open two-way conversations and Q&A sessions.
Getting to know the company from different angles
enriches our understanding of the business and helps us
to make more informed decisions.
These face-to-face events included meals with groups
of talents, our global Women’s Initiatives Network (WIN)
ERG, and a 'speed-dating' event with over 100
participants. Encounters like these reaffirm that building
a strong culture is an important pillar of ASM’s success,
and that both our core values (We care, We Innovate, We
Deliver) and our ACE cornerstone behaviors
(accountability, collaboration, empowerment) are
important in everything we do, and contribute to the
collective success of the company.
Sustainability
ASM is driving the development of critical technologies
such as AI, EVs, medical devices, and cloud computing,
improving lives the world over.
Our Net Zero by 2035 targets were independently
validated by SBTi, the Science Based Targets initiative,
last year for Scopes 1, 2 and 3. ASM is the first WFE
player to publish its Climate transition plan, which we
discussed in 2024 with the Management Board. We also
discussed the double materiality assessment and steps
taken to complete it. We are impressed by the concrete
measures the company is taking to decrease its own
carbon footprint and replace certain materials and
consumables to otherwise enhance our sustainability
efforts.
This year was also the first year for ASM to publish a
Sustainability Statement as part of its Annual Report, in
line with the Corporate Sustainability Reporting Directive.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
103
Pauline van der Meer Mohr
Chair of the Supervisory Board
Going forward, sustainability legislation will continue to
evolve, including the Corporate Sustainability Due
Diligence Directive. In the Audit Committee and the
Supervisory Board as a whole, we often discussed these
developments with management to get a detailed
understanding of the challenges, efforts, and results.
Supply-chain management
One of the lessons of recent years has been the
importance of supply-chain resilience and fine-tuned
inventory management. The Supervisory Board has
monitored working capital developments, and in
particular inventory and is pleased to see the company
focus and improvement plans to reduce this. We will
continue to monitor this and are pleased to see that
recent changes have already led to improvement
programs, a reduction in inventory, and an improvement
in working capital.
We also discussed ASM’s investments in IT to improve –
among other things – the supply chain, which will enable
better planning and ordering of parts required for our
tools. Moreover, we discussed management’s program
for outsourced partners to add more value to the
modules they provide and package them to be shipped
to customers by merge-in-transit.
Future focus
To remain ahead of what’s next in the years to come,
ASM needs to invest. In the broadest sense of the word
– invest in people, in R&D innovations, in product
development, in sustainability, and in unlocking new
opportunities. This also includes investing, as the
company has done, in a dedicated team of specialists to
comply with the ever-changing geopolitical landscape of
export control restrictions and other national and
international rules and regulations. The Supervisory
Board often discussed these challenges with
management, as well as other investment opportunities,
like the expansions in Scottsdale and Korea announced
last year.
Changes to the Supervisory Board
Going forward, technological innovations will be more
important than ever as a catalyst for ASM’s growth,
development, and relevance. That is also what the
Supervisory Board discussed as part of its self-
evaluation. Therefore, we agreed to reinforce our deep
technology expertise by adding a tech profile member in
2024 and establishing a Technology Committee. This
resulted in the addition of Martin van den Brink. who has
four-decades experience in the industry. The
Technology Committee will assist us in monitoring the
tech aspects of ASM’s business strategy, such as
technology trends, the investments required, technical
resources, and operational performance in R&D.
Moreover, we saw two additional changes in the
Supervisory Board: Monica de Virgiliis retired, and Tania
Micki joined us as a new member. From 2025, she will
succeed Stefanie Kahle-Galonske as Chair of the Audit
Committee. We are grateful that Stefanie can extend her
membership for another year, in light of her unique skill
set and her role in handing over the chairmanship of the
committee and will nominate her to the Annual General
Meeting in 2025 for reappointment with a one-year term.
Conclusion
It was a year of progress for ASM, during which the
company took important steps. On behalf of the entire
Supervisory Board, I would like to compliment the
Management Board, Executive Committee, and all other
colleagues at ASM on yet another successful year. We
appreciate the hard work you all do and look forward to
the many exciting developments yet to come.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
104
24.2 Supervisory Board report
Members of the Management Board generally joined the
regular Supervisory Board meetings. Prior to and
following the regular Supervisory Board meetings, the
Supervisory Board had meetings among themselves,
sometimes inviting the CEO. The Supervisory Board-only
meetings allow members to discuss and reflect on
specific items of interest and importance without the
involvement of the Management Board, such as the
succession of the Supervisory Board. Outside of the
collective and organized meetings, there was regular
interaction between the Chairs of the committees and
the Chair of the Supervisory Board to ensure the proper
distribution of information, as well as between the Chair
of the Supervisory Board and the CEO, the Chair of the
Audit Committee and the CFO, the Chair of the NSR and
Ms. Jakubek and the Chair of the Technology Committee
and senior technology executives.
Members of the Executive Committee also attended
some regular Supervisory Board meetings, where
agenda items concerning the relevant Executive
Committee member were discussed. The same applies
to meetings of the Audit Committee (generally attended
by the Management Board and in any case the CFO),
and the NSR (for the main part attended by the CEO and
Ms. Jakubek). During the strategy meeting in December,
the entire Executive Committee joined the Supervisory
Board meeting, except for one member who had a
conflict in his schedule. The Executive Committee's
participation enables the Supervisory Board to have
direct contact with these members, and allows for better
supervision by the Supervisory Board. The relationship
between the Supervisory Board and the Executive
Committee has been codified in the Rules of the
Supervisory Board and the ExCo Rules.
In April 2024, the Supervisory Board travelled to Italy,
where it visited LPE S.p.A., the subsidiary ASM acquired
in 2022. There, the integration of LPE was discussed.
Also, the Supervisory Board met with talents and said
goodbye to Monica de Virgiliis, who retired as of the
Annual General Meeting (AGM) in May 2024.
In October 2024, the Supervisory Board met talents in
the Almere headquarters. In December 2024, the
Supervisory Board travelled to Singapore, where it met
talents during a dinner, and female talents as part of a
WIN event. Also, there was a meet-and-greet with all
employees.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
105
Board meetings attendance
Name
Supervisory Board
(with management)
Supervisory Board
(Board-only)
Audit Committee
NSR Committee
Technology
Committee
Pauline van der Meer
Mohr
7/7
9/9
4/5
6/6
N/A
Adalio Sanchez*
7/7
9/9
4/5
6/6
3/3
Didier Lamouche
7/7
9/9
1/5
6/6
3/3
Marc de Jong
7/7
8/9
5/5
N/A
3/3
Martin van den Brink*
5/7
5/9
2/5
N/A
3/3
Monica de Virgiliis *
3/7
3/9
2/5
N/A
N/A
Stefanie Kahle-
Galonske
7/7
9/9
5/5
3/6
N/A
Tania Micki*
7/7
9/9
5/5
N/A
N/A
* While Mr Sanchez is no longer a member of the Audit Committee since July 2024, he continued to attend the meetings. Although Ms Micki
was not appointed until the AGM in May 2024, she attended prior meetings as an observer. Mr Van den Brink attended meetings as of his
appointment at the AGM and Ms de Virgiliis until her retirement as of the AGM. Ms. Kahle Galonske attended the NSR from July onwards.
Supervisory Board visiting ASM's Singapore facility
During the meetings, the Supervisory Board had
discussions with the Management Board on a wide
range of topics, and on occasion with other members of
the Executive Committee. These related to, among
others, and not listed in order of importance:
a. The updated Diversity, Equity and Inclusion (DE&I)
policy.
b. The establishment of a Technology Committee.
c. Succession planning of the Supervisory Board and its
committees.
d. Succession planning of the Management Board and
the Executive Committee, including succession of the
CEO, the position of the CTO and enhancement of the
Executive Committee by the appointment of two
additional members.
e. Organizational changes of ASM, including a
rearrangement of the business units, new
departments and appointments of new leaders with
new responsibilities.
f. The execution of ASM’s sustainable long-term value-
creation strategy, including investments.
g. The annual budget (including deviations therefrom),
the quarterly financial results review and performance
by the company, and the preparation of the quarterly
earnings press releases.
h. The performance of the company and its underlying
businesses from a business and operational
perspective.
i.
Oversight of the risk management and internal
controls and the business processes at large,
including developments in the Netherlands around the
Declaration on risk management (Verklaring omtrent
risicobeheersing) and the impact thereof on ASM.
j.
The increasing focus on sustainability matters. The
double materiality assessment and the Climate
Transition Plan were discussed, as well as
measurements and initiatives to reduce ASM’s Scope
1, Scope 2 and Scope 3 emissions.
k. Company culture, where the Supervisory Board
supported and challenged the Executive Committee’s
efforts to enhance it.
l.
The 'People' strategy, succession planning of senior
management, leadership trainings, talent reviews and
retention, results of the engagement survey, diversity,
equity and inclusion.
m. Geopolitical environment and the impact of the US
export-control regulations,
n. The execution and organization of the global
operations and supply chain, inventory and supply-
chain challenges and an improvement strategy of the
supply chain.
o. Cybersecurity and the cyber resilience of the
organization was discussed.
p. A number of specific procedural and financial matters
were discussed, including but not limited to the
organization of the Annual General Meeting, dividend
distribution, a share buyback program and a
withdrawal of shares.
q. A proposal to amend the articles of association to
include an indemnity for the members of the
Management Board and the Supervisory Board.
r. The regular updates around developments,
opportunities, and risks related to key customers and
market trends.
s. Regular reviews and monitoring of (potential)
acquisitions, divestments, and partnerships.
t. The remuneration of the Management Board; the
evaluation of the Management Board based on the
achievement of specific targets approved by the
Supervisory Board.
u. Product and market developments, management and
financial structure, and financial and non-financial
performance.
v. ASM's investment in ASMPT, including the preliminary
non-binding approach from an independent third
party the board of ASMPT received and that the
possible privatization talks ceased.
w. The appointment of the new auditor, which was
selected in 2023 and proposed to the AGM to
become the auditor as of reporting year 2025, as well
as the handover of the existing auditor to the new
auditor.
In the Supervisory Board meetings without management,
the Supervisory Board discussed amongst other things:
• The retirement of Mr Loh as CEO, his remuneration at
retirement, and the nomination of Mr M'Saad as his
successor;
• The nomination of Mr Van den Brink as new member
of the Supervisory Board and nomination of Mr
Lamouche for reappointment;
• The remuneration of the Supervisory Board; the
proposal to the Annual General Meeting of a new
Remuneration Policy of the Supervisory Board and to
amend the remuneration of the Supervisory Board
and its committees; and
• The nomination of Ms Van der Meer Mohr, Ms Kahle-
Galonske and Mr Sanchez for reappointment as
members of the Supervisory Board. Ms Van der Meer
Mohr and Mr Sanchez are nominated to be
reappointed for a second four-year term and Ms.
Kahle-Galonske for a third one-year term given her
unique skill-set and to ensure a smooth transition of
her role of Chair of the Audit Committee to
Supervisory Board member Tania Micki in 2025.
Strategy
Every year, the last Supervisory Board meeting of the
year is tasked with discussing with the Management
Board and rest of the Executive Committee ASM’s
strategy, sustainable long-term value creation, and the
planned implementation and risks attached with realizing
it. This meeting lasted a full day. In this year’s strategy
meeting, discussions included inter alia:
• The semiconductor and semiconductor equipment
market and outlook;
• The development of ASM’s market share in the
different segments it serves;
• The development of the competitive environment;
• The new technology and market trends for the
coming years;
• The progress with ASM’s strategic priorities;
• Investments;
• ASM’s long-term revenue and profit or loss forecasts;
• The strategy for people; and
• Strategic initiatives to improve the company’s
sustainable long-term value-creation strategy.
For efficiency reasons two topics of the strategy were
discussed in the Supervisory Board meeting of October,
namely the sustainability strategy (including ASM's
Climate Transition Plan) and the strategy for risk and risk
mitigation. Throughout the year in its regular meetings,
the Supervisory Board monitors the implementation of
the strategy.
The execution of the sustainable long-term strategy of
Growth through Innovation means that apart from
profitability and growth goals, the Supervisory Board
also monitors results vis-à-vis the sustainability targets.
The continued focus on and importance of sustainability
resulted in regular discussions with the Management
Board and other senior executives around this topic as
part of the sustainability topics, including the company's
double materiality assessment, the Climate Transition
Plan, and the steps the company is taking to deliver the
sustainability statements in this Annual Report to comply
with the Corporate Sustainability Reporting Directive
(CSRD).
Scope 1 and 2 emissions are being addressed by ASM’s
target to reach 100% use of electricity from renewable
sources by 2024, and further GHG emissions-reduction
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
106
efforts within our company boundary. Addressing Scope
3 emissions is considerably more challenging, and
requires collaboration in the value chain. This has been
discussed on several occasions with the Management
Board and specialists. An important way this is currently
addressed is by designing products to be more energy
efficient. We strive to accelerate industry value-chain
progress through, inter alia, the Semiconductor Climate
Consortium, of which ASM is a founding member, and
which sets out to provide methods and standards for
addressing Scope 3 collaboratively across the
semiconductor industry value chain. The Science Based
Targets initiative verified ASM’s measurements and
targets for all scopes in the summer of 2023, and ASM
continued on this path in 2024. In the October meeting,
the Supervisory Board discussed the concrete steps
ASM is taking to decrease its CO2 emissions, and other
sustainability measures.
With respect to the execution of the strategy, both
boards also discussed M&A possibilities and other
investment opportunities regularly throughout the year.
The Supervisory Board reviewed and challenged the
opportunities from a technology, financial, strategic,
economic, commercial, and competitive point of view.
Corporate governance
The Supervisory Board established a Technology
Committee chaired by Martin van den Brink, who was
appointed as a member to the Supervisory Board as of
the AGM on May 13, 2024. A Technology Committee
Charter was adopted for this committee. Moreover, the
AGM approved an amendment to the Articles of
Association, which included an indemnity in favor of the
Management Board and Supervisory Board. Moreover,
the Supervisory Board amended its profile and the skills
matrix. Because of the addition of two new members
and the establishment of a Technology Committee, the
Supervisory Board decided to rearrange the composition
of the various committees as of July 2024.
Risk management
One of the Supervisory Board's responsibilities is to
oversee risk management. It gave attention to the risk
landscape, any developments, the risk appetite, risk
mitigation measures, and the risk mitigation strategy.
The effectiveness and results of the internal control
assessments were reviewed. The Audit Committee and
the Supervisory Board as a whole also discussed
developments in the Netherlands around the Declaration
on risk management (Verklaring omtrent
risicobeheersing) – which is an in-control statement –
and its impact on ASM.
Refer to chapter 25 'Risk management' for more
information on those risks and uncertainties currently
most relevant to our company. For 2024, particular areas
of attention the Supervisory Board focused on in its
meetings are highlighted.
The first is employee retention, also in view of the 'war
on talent'. Talent development, new leadership
programs, succession planning and culture were regular
agenda items. ASM aspires to become and remain the
employer of choice, so the Supervisory Board discussed
succession, leadership and talent-retention activities,
improvements in diversity, equity and inclusion, how the
engagement survey results were followed up on, and the
leadership program.
The second is cyber and IP security and resilience and
automated business controls to improve these. ASM is
upgrading its internal IT system, which was discussed
with the Audit Committee and the full Supervisory Board.
The geopolitical tension between the US and China is
also highlighted. In an effort to reduce the technology
access of Chinese chip manufacturers and prevent them
from being able to develop and manufacture their own
high-end chips, the US has issued numerous regulations
in recent years, and introduced further ones in
December 2024. The impact of these regulations is
regularly discussed with the Management Board,
including the extent to which ASM is impacted by these
regulations, as well as the sector as a whole.
Lastly, the Supervisory Board also discussed supply-
chain risks. In recent years, ASM has faced supply-chain
constraints, and for some parts and components these
have remained a challenge. For others this is no longer
relevant, and it is important to reduce inventory and
improve working capital. The improvement strategy,
including new initiatives in 2024, was discussed and
monitored.
Diversity, equity, and inclusion
The Supervisory Board recognizes the value of diversity
among the members of the Supervisory Board, the
Management Board, Sub board and the whole of the
organization. The Supervisory Board and Management
Board discussed the company’s performance in this field,
including targets and measures.
Refer to section 17.2 for more information.
Ethics
The Supervisory Board received an update on the Ethics
Committee twice in 2024, including the ethics report, all
incidents reported, and areas of continuous
improvement.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
107
Expertise
The Supervisory Board's profile describes the range of expertise that should be represented within the Supervisory Board. For an overview of the skills and expertise of the individual members, see the chart below.
Supervisory Board skills and expertise matrix
Pauline van der Meer Mohr
Adalio Sanchez
Stefanie Kahle-Galonske*
Didier Lamouche
Marc de Jong
Martin van der Brink
Tania Micki*
General
Financial and non-financial reporting matters and corporate finance
¬
¬
¬
¬
¬
¬
¬
¬
¬
Governance and legal affairs
¬
¬
¬
¬
¬
¬
¬
¬
¬
Human resources matters and employee relations
¬
¬
¬
¬
¬
¬
¬
¬
Remuneration
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
(Previous) executive board member of (listed) international company
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
Sustainability, including climate change
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
IT, cyber, AI, and digitization
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
Industry specific
Semiconductor ecosystem
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
Deep understanding of semiconductor technology and products
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
High-tech manufacturing/integrated supply chain management
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
¬
No specific and sufficient experience and knowledge.
Sufficient experience and knowledge to be able to take an informed decision.
Considered an expert given previous or current roles, other than with ASM
*Financial expert
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
108
Supervisory Board Committees
In 2024, the Supervisory Board established a
Technology Committee. Also, two new members were
appointed to the Supervisory Board: Ms Micki and Mr
Van den Brink. Therefore, the Supervisory Board decided
to rearrange the composition of the various committees
in July.
Audit Committee
The Audit Committee's role is described in its Charter,
available on the company’s website. The Audit
Committee consists of five members: Stefanie Kahle-
Galonske (Chair), Tania Micki, Marc de Jong, Pauline van
der Meer Mohr, and Martin van den Brink. The Audit
Committee assists the Supervisory Board in fulfilling its
supervisory responsibilities to oversee ASM’s financing,
financial statements, financial-reporting process, non-
financial and sustainability reporting, system of internal
business controls, internal audit, and risk management.
The Audit Committee met four times in person in 2024,
and always before the publication of the quarterly, half-
year, and annual financial results. In addition to the Audit
Committee members, the Management Board, the Group
Controller, head of Internal Audit, and the external
auditors are invited to the meeting. The Audit Committee
also met separately with the external auditors in 2024
and with the CFO to evaluate the internal audit function.
The following lists the main topics discussed by the
Audit Committee in 2024:
a. The company’s financial reporting, including the
application of accounting principles;
b. The company’s financial position and financing
programs, and tax structure;
c. Tax reporting and tax, including changes to
legislation;
d. The company’s internal risk-management systems
and market developments regarding disclosure
thereof, including developments in the Netherlands
around the Declaration on risk management
(Verklaring omtrent risicobeheersing) and the impact
thereof on ASM;
e. The effectiveness of internal controls;
f. The internal audits performed and its findings, as well
as the annual internal audit plan;
g. The Annual Report and financial statements, and the
budget and quarterly progress reports prepared by
the Management Board;
h. A presentation on export controls;
i.
Progress on the company’s investment in an upgrade
of the IT system to, inter alia, harmonize business
processes, as well as the company's investment in an
upgrade of the PLM system;
j.
The appointment of the new external auditor as of
reporting year 2025 and the transition from the
existing auditor;
k. Margin developments of certain products; and
l.
Developments in the legal and regulatory landscape,
including in terms of ESG and sustainability (such as
the CSRD and CSDDD, each as defined below) and
risk.
In addition, the following matters were discussed:
Each quarter, the CFO provides the Audit Committee
with a detailed look into ASM's key financial
performance. ASM's operational and financial short-term
and long-term performance were extensively addressed
in each quarter’s discussion. In 2024, topics of particular
interests included customer demand, developments in
supply-chain constraints, obsolete inventory, working
capital, and investments for the future. Accounting
matters and the ASMPT investment were discussed in
depth. The interim and annual reports were reviewed
and discussed prior to publication.
Furthermore, the committee was regularly updated on
non-financial reporting matters relating to sustainability
and the EU taxonomy. This includes ASM’s investments
to prepare for and progress of the non-financial
reporting required under the Corporate Sustainability
Reporting Directive (CSRD) and the Corporate
Sustainability Due Diligence Directive (CSDDD).
In addition, the Audit Committee reviewed the capital
allocation model. This included a discussion on the
amount of the dividend payment per share, the feasibility
of share buyback programs and withdrawal of shares. In
addition, ASM’s tax policy was discussed, as well as
regulatory tax developments, such as the global
minimum top-up tax as a part of the OECD's Pillar 2, the
tax report for 2024, the tax risk assessment and
disclosure requirements around tax.
The Audit Committee reviewed ASM’s enterprise risk-
management framework, focusing on top key risks
identified by management and the external auditors.
Additionally, observations made by the internal auditor
and the external auditor on the design and effectiveness
of internal controls were discussed with the Audit
Committee, and the committee discussed and monitored
follow-up actions.
The Audit Committee reviewed on a quarterly basis an
update of the progress of the internal audit plan
approved by the Supervisory Board, audit scope,
detailed outcomes of each audit, and remediation status
of the follow-up action plans. The internal audit plan was
continuously reviewed. Where appropriate, amendments
were made to give priority to certain matters.
The Audit Committee reviewed and approved the 2024
external audit plan, key audit matters, audit scope
(including additional assignments or projects with the
external auditor), audit teams, materiality levels, and
fees. The Audit Committee also reviewed and approved
any non-audit services provided by the external auditor,
in accordance with ASM’s policies on audit and non-
audit services provided by the external auditor. Each
quarter, the Audit Committee received a quarterly
update from the external auditor on the progress of the
external audit activities. Moreover, the Audit Committee
discussed non-financial reporting and the external
auditor’s role therein with the external auditor.
The Audit Committee evaluated the performance,
qualifications, and independence of the external auditor
in 2024.
Given the mandatory rotation, 2024 is the last year
KPMG could be appointed as auditor, which the General
Meeting approved in 2023. In 2023, the Audit
Committee and management worked on the selection of
a new auditor, which the Supervisory Board proposed to
the AGM in May 2024 for the reporting year 2025. In
2024, the Audit Committee had a separate call with the
new auditor to discuss the transition from the existing
auditor to the new one.
In addition, during the year, the Audit Committee
reviewed fraud risk assessments and litigation claims.
For more information on the Audit Committee, please
see chapter 21.
Nomination, Selection and Remuneration (NSR)
Committee
The role of the NSR Committee is described in its
Charter, available on the company’s website. In general,
the NSR Committee advises the Supervisory Board on
matters relating to the selection and nomination for the
appointment or reappointment of new or existing
individual Management Board and Supervisory Board
members. It includes the respective remuneration
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
109
policies and Remuneration report, and the remuneration
levels of the individual members of the Management
Board and Supervisory Board.
The NSR Committee is chaired by Didier Lamouche. The
other members are Pauline van der Meer Mohr, Adalio
Sanchez and, since July 2024, Stefanie Kahle-Galonske.
In addition to the NSR Committee members, the NSR
Committee invites the CEO, and the Senior Vice
President Global People to attend (parts of) its meetings.
In 2024, the NSR Committee met five times in person
(additional conference calls were held on an ad hoc
basis), with all NSR Committee members attending each
of these meetings.
Topics discussed by the NSR in 2024 are based on the
NSR’s regular calendar (recurring topics) or are related to
specific matters:
• The retirement of Mr Loh and his remuneration at
retirement;
• The appointment of Mr M'Saad as Chief Executive
Officer, as successor to Mr Loh;
• The nomination of Mr Lamouche for reappointment
and Mr Van den Brink for appointment to the
Supervisory Board;
• Revisions to the Diversity, Equity and Inclusion (DE&I)
policy;
• Composition of the Management Board;
• CEO pay ratio;
• Management Board remuneration outcome over
previous performance year and planned actions for
the new performance year 2024, and in the final
meeting for the performance year 2025;
• Long-term incentive dilution;
• New Remuneration Policy Supervisory Board and
revision of the fees of the Supervisory Board and its
committees (in preparation of the Annual General
Meeting, May 2024) following a benchmark;
• Remuneration report 2023, final editing;
• Management Board evaluation and performance
reviews;
• Management Board short-term incentive targets 2024
and outlook and Management Board long-term
incentive targets;
• Monitoring of progress of results compared to short-
term incentive targets;
• Training Supervisory Board;
• Management Board shareholding requirements status
overview;
• Employee engagement survey results 2024;
• Succession planning and talent reviews, including
composition of the Management Board and Executive
Committee;
• Diversity, equity and inclusion efforts and progress
within ASM;
• Succession planning Supervisory Board;
• Amendment to LTI policy;
• Transition to new CEO;
• Nomination of CFO for reappointment;
• Remuneration report 2024 (in preparation of the
Annual Report 2024); and
• Management Board short-term and long-term
incentive targets 2025.
After a benchmark with peers, the decision was taken to
adopt a new Remuneration Policy for the Supervisory
Board and revise the remuneration of the Supervisory
Board and its committees, and to propose this policy and
revised remuneration to the Annual General Meeting on
May 13, 2024. Key differences proposed to the Annual
General Meeting, which were approved and adopted
after voting included:
• The removal of the cap on the travel allowances;
• The introduction of a fee per additional meeting in
excess of two hours above the regular cadence of the
Supervisory Board or its committees in special
business circumstances after prior approval by the
Chair of the Supervisory Board; and
• The introduction of a Technology committee and the
option to establish additional committees.
For more information on the NSR Committee, see
chapter 21.
Technology Committee
The Technology Committee was newly established in
2024 and had its first meeting in July. The role of the
Technology Committee is described in its Charter,
available on the company’s website. In general, the
Technology Committee advises the Supervisory Board
on matters relating to ASM's technology roadmap,
product roadmap, R&D investments and other
technology-related items.
The Technology Committee is chaired by Martin van den
Brink. The other members are Adalio Sanchez, Didier
Lamouche and Marc de Jong. In addition to the
Technology Committee members, the Technology
Committee invites the CEO and members of senior
management responsible for the technology and product
roadmap and platform engineering and technology.
In 2024, the Technology Committee met three times in
person, with all Technology Committee members
attending each of these meetings.
Topics discussed by the Technology Committee in 2024
included:
• The adoption of the Technology Committee Charter;
• Meeting frequency, sequence and agenda;
• Technology-related aspects of investment
opportunities;
• Advanced packaging and hybrid bonding; and
• The product roadmap to prepare for the strategy
meeting of the Supervisory Board.
Performance evaluation
Every year the Supervisory Board reviews and discusses
the functioning of the Supervisory Board, its committees,
and its individual members through an internal
assessment, as conducted by the members of the
Supervisory Board and led by the Committee. The
composition, competencies, and functioning of the
Supervisory Board, as also described in the Supervisory
Board Profile, are part of the assessment. Once the
answers to the self-assessment forms are received by
the Committee, he will share these with the entire
Supervisory Board. Throughout the year, the Chair of the
Supervisory Board had bilateral meetings with the
individual Supervisory Board members to discuss any
items coming from the evaluation and any other matters.
The conclusion of the assessment was that the
Supervisory Board, the Management Board, the
Executive Committee and their individual members
function properly and effectively, and that the
cooperation between the Supervisory Board and
Management Board and Executive Board is functioning
well. The outcome of this evaluation included board
dynamics and lessons learned, which included:
• The desirability of an additional Supervisory Board
member who is an expert in technology and the need
for a Technology Committee;
• The need for additional Supervisory Board meetings
without an agenda so members can spend more time
together to discuss current affairs.
The Supervisory Board also annually assesses the
composition and performance of the Management Board
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and their individual members. In 2024, this was done by
the Supervisory Board in its meetings without
management present to prepare for the performance
appraisals of the Management Board. Moreover, the
performance of the Management Board is also assessed
when determining if and to what extent the Management
Board achieved its annual targets.
Corporate governance
The Supervisory Board is responsible for overseeing the
company’s compliance with corporate governance
standards and best practices. The Supervisory Board is
of the opinion that the company complies with the Dutch
Corporate Governance Code, subject to the deviations
set out in chapter 36.
Shareholders
The Annual General Meeting was held on May 13, 2024 in
Almere, the Netherlands. Shareholders were invited to
attend in person, and were also offered the option of
following the meeting virtually via a live webcast (view and
hear only). Voting was possible by proxy before the
meeting, as well as during the meeting. Shareholders were
also given the option to pose questions prior to and during
the Annual General Meeting.
During the meeting, the new Remuneration Policy of the
Supervisory Board was approved. The regular dividend
proposal of €2.75 per share was also approved.
On February 27, 2024, ASM announced the authorization
of a new share buyback program of up to €150 million.
The program started on May 15, 2024, and was
completed on July 25, 2024. In total, we repurchased
228,389 shares at an average price of €656.77, under
the 2024 program.
Following the share buyback program, we withdrew
100,000 shares, which withdrawal was completed on
November 28, 2024.
Induction, education, and training
ASM has a comprehensive induction program for newly
appointed members of the Supervisory Board, designed
to present a good view of the company. This includes
the group’s strategy, technical developments,
commercial status and outlook, financial position and
outlook, and relevant legal aspects and risks. The
program includes meetings with other Supervisory Board
members, Management Board members, Executive
Committee members, KPU, and other leaders in the
company. In 2024, two new Supervisory Board members
were appointed.
In 2024, as is the case every year, the Supervisory Board
discussed their education and training needs. The result
was that they received a training on specific technology
developments and opportunities for ASM The training
was prepared and given by inside experts to the
Supervisory Board and Management Board. Furthermore,
the Supervisory Board was trained on risk management.
Moreover, the Supervisory Board performed a site visit in
April 2024 to Milan, Italy and in December 2024 to
Singapore, where it also visited ASM's cleanroom there.
Independence
The Supervisory Board has determined that its current
members are all independent, as defined by the Dutch
Corporate Governance Code. Neither the Chair nor any
other member of the Supervisory Board is a former
member of ASM’s Management Board or has another
relationship with ASM which can be judged ‘not
independent’ of ASM.
Furthermore, the Supervisory Board reviews and
discusses all of its members’ other executive and non-
executive positions on an annual basis. It approves any
intended outside positions, to safeguard – among others
– the level of engagement, conflicts of interest,
compliance with laws, and the Corporate Governance
Code. In 2024, there were no conflicts of interest to
report between Management Board members and the
company or Supervisory Board members and the
company.
Financial statements
We present the ASM 2024 Annual Report in accordance
with IFRS, as prepared by the Management Board and
reviewed by the Supervisory Board. ASM’s independent and
external auditors, KPMG Accountants N.V., have audited
these financial statements and issued an unqualified
opinion. Their report appears in chapter 30. All of the
members of the Supervisory Board have signed the
financial statements in respect of the financial year 2024.
Supervisory Board
Pauline van der Meer Mohr - Chair
Martin van den Brink
Marc de Jong
Stefanie Kahle-Galonske
Didier Lamouche
Tania Micki
Adalio Sanchez
Almere, the Netherlands
March 6, 2025
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25. Risk management
To stay ahead of what's next, our risk management cycle
is a continuous process aimed at having a deep
understanding of our risks and opportunities and
embedding mitigation in our key processes. We prioritize
key risks by performing a top-down risk assessment, and
ensure effective risk mitigation in line with our risk
appetite through our bottom-up (process level) controls.
Our risk committee meets monthly to stay on top of key
developments impacting our risk landscape, enabling
proactive and continuous risk mitigation. Our risk
management cycle focuses on our two main risk
clusters:
1. Maintaining quality and operational execution while
dealing with the challenges of attracting, retaining,
and developing people.
2. Staying ahead of competition in a demanding and
evolving technological environment.
In addition to our risk clusters, we also focus on risks
related to our supplier base, trade regulations, and
cyber.
Risk management framework
Risk management approach
ASM's approach to managing risk is based on the
reference model of the Committee of Sponsoring
Organizations (COSO). It is a key part of our corporate
governance framework, which describes how we embed
our strategy, mission, and objectives across our
organization.
Through our structured risk management approach we
continuously identify, manage, and monitor risks to
enable a robust understanding of risks and opportunities
in pursuit of our strategic objectives. It helps us make
our operations more effective and efficient, promotes
reliable financial and non-financial reporting, and
supports our compliance with laws and regulations.
Every year, we assess the risks that could prevent us
from achieving our strategic objectives. We do this at a
consolidated level (top-down approach) with our risk
committee and Executive Committee, and on a process
level (bottom-up approach). In 2024, we focused on
further streamlining our controls framework, updating
our key risk-management indicators and gaining a
deeper understanding of our risk mitigation capabilities
in line with our ambition level which is based on our risk
appetite.
Our key business controls are assessed on a quarterly
basis. The outcomes as well as the results of our key risk
indicators and risk developments are reviewed by the
risk committee to enable appropriate follow up actions.
Our financial reporting controls are also assessed each
quarter. In addition to our self-assessment cycle,
business management provides the Executive
Committee with an annual assurance letter concluding
on the reliability of their financial reporting, the
effectiveness of their internal controls, risk management,
and compliance with internal policies, as well as laws
and regulations.
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Three lines of defense model
Management Board
p
p
p
p
First line
of defense
Second line
of defense
Third line
of defense
p
p
p
Ownership &
management
Risk & control
functions
Independent objective
assurance
p
p
p
Business & operations
management
Oversight
functions
Internal
audit
Our risk management and internal control activities are
organized through the three lines of defense model. The
Executive Committee – consisting of the Management
Board and five senior executive leaders who are
considered essential in driving and executing the
strategy – is entrusted with risk management and
compliance in line with the risk appetite, and is
supported by:
• First line of defense: Business and operations
management owns and manages risk, which includes
identifying, assessing, controlling, and mitigating
risks. Our risk owners monitor risks that are part of
their process and drive risk responses based on our
top-down risk assessment and continuous reviews.
• Second line of defense: Oversight functions support
business and operations management and help make
sure the risk and control procedures have effective
metrics and are operating as intended. Our quarterly
control assessments and key risk indicator reporting
are key elements of our risk oversight.
• Third line of defense: Internal Audit provides
independent objective assurance on the
effectiveness of governance, risk management, and
internal controls, including how business and
operations management and the oversight functions
manage and control risk. Internal Audit brings a
systematic, disciplined approach to evaluating and
improving the effectiveness of risk-management,
control, and governance processes.
The risk assessment as well as the risk committee
follow-up actions are key input for the internal audit plan.
In return, key risk-management outcomes are audited
and audit findings feed back into the risk-management
process.
Our Supervisory Board provides independent oversight
of managements response to critical risk areas. The
Audit Committee provides independent oversight of our
risk-management process and key follow-up actions
taken based on our quarterly control assessments,
developments in our key risk indicators, and the follow-
up actions taken by the risk committee.
Risk culture
In line with our core values (We Care, We Innovate, We
Deliver) and our ACE behaviors, ASM strives for a culture
of openness and transparency. In this culture, we
proactively disclose identified risks, report unexpected
events as soon as they occur, and discuss and follow up
on improvement opportunities. The risk committee plays
a key role in our risk culture. It meets monthly, is chaired
by the Corporate Vice President & Group General
Counsel (reports into the CFO), and, to ensure that all
products and services are represented, has members
from all key business units and departments. Through
the monthly committee meetings, quarterly control self-
assessments, and key metrics on the development of
our top-down risks, we are continually increasing risk
awareness. In addition, the risk committee members
drive follow-up actions in our primary processes as well
as our products and services as needed.
As part of our quarterly control self-assessment process,
our risk committee members and all key business risk
owners are trained on risk-management principles and
focus areas. Our corporate incentives include specific
risk-management elements to make sure that risk
mitigation in line with our risk appetite is top of mind. Our
ACE behaviors as well as key corporate initiatives such
as our S4 program are an integral part of our
performance-evaluation process.
Risk categories and factors
In an ever-changing world, risks, opportunities, and
uncertainties are part of our operations. To stay ahead of
what's next, we continuously monitor the risk landscape
to enable risk-informed decision-making and risk
mitigation in line with our risk appetite. The ASM risk
universe, which is detailed on the following pages, is a
top-down overview of the risks that may have a material
adverse impact on our ability to achieve our strategic
objectives, and forms the basis of our annual top-down
risk assessment as well as our quarterly risk updates.
The risk universe is reviewed and updated annually or
more frequently when there are significant internal and/
or external developments.
Our risk-management process is set up to facilitate a
company-wide understanding of the nature of these
risks, the impact they may have on our business, and the
way they develop over time. These risks are not the only
ones we face and actively mitigate. Some risks may not
yet be known to us, and certain risks we do not currently
believe to be material could become material in the
future. On the next page, we have listed the most
important risks and risk clusters, along with our
response. This list is not exhaustive.
Risk appetite
We deal with our risks in a way that aligns with the risk
appetite established by the Executive Committee. Risk
appetite is the level of risk we deem acceptable to
achieve our strategic objectives. ASM’s risk appetite is
determined based on the nature of the risk and specifies
the total residual impact of the risks ASM is willing to
accept in pursuing its strategic objectives, and ranges
from open to averse. Risk mitigation in line with our
appetite is evaluated on an ongoing basis in the risk
committee as events occur throughout the year.
Risk universe and risk appetite
Risk category
Key risk
Strategy
Innovation
Flexible/cautious
People
Competition
Geopolitical
Intellectual property
Climate change
Acquisitions
Industry change
Financial
Financial reporting
Minimalist/averse
Liquidity
Foreign currency
Tax
Compliance
Laws & regulations
Averse
Legal liability
Operations - product
Key capabilities
Cautious/minimalist
R&D program execution
Product delivery
Manufacturing disruption
Product lifecycle
Operations - partners
Supplier performance
Cautious/minimalist
Supplier dependency
Customer dependency
Operations - process
Operational excellence
Flexible/cautious
Information security
Information technology
Environment, health & safety
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We have listed the most important risks and risk clusters
below, along with our response. This list is not exhaustive
Strategy
The realization of growth through our innovation
strategy may be impacted by our ability to continuously
innovate and stay ahead of competition in a demanding
and evolving technological environment.
Innovation has been the core of ASM for more than 50
years. Continuous innovation and customer focus enable
us to outperform the wafer fab-equipment market and
realize our strategic objectives. To stay ahead of what's
next, in 2024 we focused on the following:
• Our Growth through Innovation strategy is anchored
in continuous investment in innovation. We have a
global, networked R&D model to collaborate closely
and early with customers, industry partners and
universities. In 2024, we invested €470 million in R&D.
Our long-term strategic partnerships with imec and
the University of Helsinki continued and we also
expanded our collaboration with TU Eindhoven as well
as other external partners. Furthermore, we are
adopting new ways to deepen our understanding
around our deposition processes and have increased
our process emulation capabilities.
• To provide a solid foundation for future R&D
expansion and support a resilient semiconductor
supply chain, we are consolidating our Arizona
operations into a new cutting-edge facility. For more
information on innovation, see chapter 12.
• Product intelligence holds immense potential, adding
to the differentiation of ASM's products. In 2024, we
expanded our scope to focus on two key areas: R&D
acceleration and high volume manufacturing (HVM)
enhancement. For R&D acceleration, our scope is to
accelerate time-to-market by speeding up the new
process/application development/qualification. In
HVM, we focus on optimizing our tool uptime and
improving our advanced process control capability.
• In 2024, we continued to invest in strategic field
resources to deepen our understanding of our
customers' technology roadmaps to target our key
innovation investments. These investments in the
field not only help build a strong technical
understanding of industry inflections, but also aid in
building strong relationships with key partners and
customers.
• The tense geopolitical environment and export
restrictions may continue to have a certain impact on
our sales and deployment of international knowledge
workers. Export restrictions are increasing, impacting
our ability to sell and service systems in certain
jurisdictions and for certain customers. In addition,
new restrictions could be implemented and could
impact the movement of certain of our employees
from certain nationalities across countries, and
access to certain technology. In response to the
geopolitical environment, nations are increasingly
focusing on securing their domestic semiconductor
supply chains. This emerging risk could disrupt global
cooperation in R&D and manufacturing. To mitigate
these risks, we monitor geopolitical developments as
well as laws and regulations on a continuous basis.
We comply with laws and regulations, and apply for
export licenses as required.
Climate risk: Disruptive impacts on ASM, its customers,
and its supply chain
In 2024, the acceleration of disruptive weather events
underscored the escalating risk of climate change,
posing potential challenges for ASM, our customers, and
supply chain. Climate scientists increasingly indicate that
global warming is occurring at a pace faster than
previously anticipated, heightening the global urgency to
address its impact.
Following our initial climate-change risk assessment in
2022, we have continuously been updating our
strategies to try to address these challenges. Our double
materiality assessment has identified both climate-
change adaptation and climate-change mitigation as
important topics for ASM. For details on which specific
climate-change implications are most critical to our
organization, and how we are addressing these
challenges, see section 16.1. of this report.
Operations
We may face challenges in maintaining product quality
and seamless operational execution while dealing with a
competitive labor market.
In 2024, we focused on the following key elements to
further mitigate our key operational risks:
• Attracting, retaining and developing our diverse
workforce remained a strategic priority. In a
competitive labor market, we focused on talent
engagement and development, fostering an inclusive
and high-performance culture, and implementing
strategic workforce planning. While successful in
hiring top talent, we will strengthen retention by
offering clear career paths, competitive reward
solutions, and development opportunities alongside
exposure to world-class technical expertise.
Our People agenda drives the execution of ASM's
strategy and remains central to our success in 2025.
For more information, see chapter 17.
• To increase our flexibility to deliver on projected
revenue targets, we are expanding our manufacturing
site in Korea. In addition, we continue to streamline
our manufacturing processes and quality
management systems. We recognize we are on a
continuous improvement journey.
• In 2024, we made good progress on our SAP system
upgrade to enable a smooth go-live in 2025, enhance
our company-wide processes, and enable business
transformation in support of seamless operational
execution.
• In addition to executing our processes to mitigate risk,
our service team continues to focus on technically
driven solutions to add value to our services and
products. Our service teams continue to deliver
outcome-based services and provide clear benefits to
our customers such as improved on-wafer
performance, increased productivity, cost-reduction
roadmaps, and increased sustainability.
Suppliers that do not deliver on time or on specification
may impact our manufacturing and service processes.
• ASM relies on its suppliers to deliver the materials and
parts we need in the shortest possible time at the
required quality to enable us to deliver our solutions
to customers. At the end of 2024, we initiated a
range-based inventory program, which we expect to
further improve part availability, enabling our
manufacturing and after-market support.
• Being able to support rapid changes in the business
requires an agile supply chain. Short lead times are a
key part of that. In 2024, ASM saw good progress
reducing lead times and in 2025 we will continue to
expand this through programs to ensure raw materials
and other gating items are available.
• An emerging risk related to our supply chain concerns
the ever-changing regulations related to restrictions
on sales of certain products and materials between
certain countries. Additionally, there are risks of
certain goods and raw materials being restricted from
export by certain countries. ASM continues to
evaluate its supply chain all the way down to raw
materials to make sure we use the right geographical
sources to maintain supply continuity for years to
come.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
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Cyber attacks may impact our operations and
could lead to a loss of intellectual property
In an increasingly interconnected digital world, and given
that we operate in a high cyber-target industry, ASM is
constantly vulnerable to cybersecurity threats as attack
methods evolve to be more sophisticated. Some
examples of this emerging risk include advancements in
quantum computing that could render current
cryptography protocols obsolete, and developments in
artificial intelligence that could result in unauthorized
information disclosure.
If successful, these could impact our data security and
business operations and/or lead to the loss of intellectual
property, resulting in a loss of revenue and market
position, disruptions, and regulatory penalties. Protecting
ourselves against such attacks continues to be one of
our highest business priorities. The Global CIO is
responsible for ASM’s overall cybersecurity, and the
Corp, Global IP and Licensing is responsible for
intellectual property and physical security. These leaders
collaborate closely to ensure a harmonized approach to
protecting ASM’s core assets throughout our global
locations.
ASM deploys protection targeted at people, technology,
and process. To protect our data and systems, ASM
deploys an in-depth defense, using solutions/controls,
such as advanced detection mechanisms, anti-malware,
anti-phishing protection, and identity threat-prevention.
In addition, we have implemented around-the-clock
monitoring to detect and respond to any potential
vulnerability or weakness that may arise from a cyber
threat. Our employees are at our core and we focus on
their continuous education through cybersecurity
programs and exercises (e.g. anti-phishing) to maintain
threat alertness in the ASM community. We are also
focused on how we respond to threats, with a
continuous process to conduct cyber-drills to test and
improve the procedure.
Control effectiveness statement
The Management Board is ultimately responsible for
ASM’s internal risk management and control framework.
This system is designed to manage the main risks that
may prevent ASM from achieving its objectives. The
internal risk management and control framework, and
the evaluation of the effectiveness of our internal
controls and areas for improvement, are regularly
discussed with the Audit Committee. The Audit
Committee reports on these matters to the Supervisory
Board.
The Management Board has conducted an assessment
of the design and operating effectiveness of the internal
risk management and control framework. Based on this
assessment and the current state of affairs, to the best
of its knowledge and belief, the Management Board
confirms that:
• The internal risk management and control framework
provides reasonable assurance that the financial
reporting does not contain any material inaccuracies.
• The management report provides sufficient insights
into any failings in the effectiveness of the internal
risk management and control systems.
• The management report states those material risks
and uncertainties that are relevant to the expectation
of ASM’s continuity for at least 12 months after the
date of this Annual Report. Based on the current state
of affairs, it is justified that the financial reporting is
prepared on a going-concern basis.
For the declaration of the Management Board required
pursuant to Section 5:25c of the Dutch Act on Financial
Supervision on the principal risks ASM faces, see
chapter 36.
All internal control systems, no matter how well designed
and implemented, have inherent limitations. Even
systems determined to be effective may not prevent or
detect misstatements or fraud, and can only provide
reasonable assurance with respect to disclosure and
financial statement presentation and reporting. Also,
projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become
inadequate due to changed conditions, and that the
degree of compliance with the policies or procedures
may deteriorate.
In view of all of the above, the Management Board
believes it complies with the requirements of best
practice provisions 1.2 and 1.4 of the Dutch Corporate
Governance Code.
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26. Remuneration report
26.1 Message of the Chair
Dear shareholders,
On behalf of the Nomination, Selection & Remuneration
(NSR) Committee, I am pleased to present the 2024
Remuneration report, which provides a summary of the
remuneration policies for the Management Board and the
Supervisory Board, as well as an explanation of how
these were applied in 2024.
2024: A well-managed year of transition
On the back of our success demonstrated in previous
years, 2024 proved to be another year of significant
progress for ASM. Our products and technologies
continue to be strongly adopted by our customers,
resulting in outstanding business results. We achieved
this despite an environment which continues to be
extremely volatile and difficult given the geopolitical
tensions across our largest markets.
It was also a very active year for management and
governance transitions. This included the CEO
succession, the strengthening of the Supervisory Board
with the appointment of Martin van den Brink and Tania
Micki, and the implementation of a Technology
Committee to support the strategic and technical growth
of ASM. Additionally, the NSR Committee has been
leading the succession planning for both the
Supervisory Board and the Management Board members
to support ASM's continued success.
In this context, rethinking our processes, strengthening
our leadership, adjusting our governance structure, and
attracting and retaining the best talents in the market
continue to be paramount. All of this has a great impact
on our remuneration policies and their application.
Very solid results in 2024
Despite these changes and significant uncertainty at the
start of the year, the company achieved record-high
financial results in 2024. Our revenues grew by 12% at
constant currencies, outperforming the WFE market yet
again. Our operating profit grew more than in recent
years, illustrating the wise piloting of growth and
investments, which translated into a record-high free
cash flow. Given these excellent results, it is
understandable that the short-term incentive (STI)
realization for 2024 reached very high payout levels,
demonstrating our commitment to the 'pay-for-
performance' remuneration philosophy. Similarly, we are
very proud that the vesting of the 2022 long-term
incentive (LTI) grant has reached the highest level of
achievement, reflecting the impressive value creation
since 2022.
New Supervisory Board remuneration policy in
2024
Following the AGM approval of the remuneration policy
for the Management Board in 2023 (votes in favor:
95.3%), a new remuneration policy for the Supervisory
Board was adopted at the Annual General Meeting on
May 13, 2024.
After engaging with shareholders and proxy advisors,
the previous remuneration policy has been updated to
ensure ASM remains able to attract Supervisory Board
members with broad skill sets and backgrounds to
support ASM's high-growth pace by offering attractive
and competitive remuneration.
The new remuneration policy was adopted by 99.6% of
shareholder votes. The details of the changes to the
previous policy are outlined in paragraph 26.5. For 2025,
the Supervisory Board does not intend to make any
further changes to the remuneration policy.
Engagement
To ensure our policies align with good corporate
governance criteria and the interests of our broader
stakeholder community, we proactively communicated
and engaged with shareholders through our annual
governance and remuneration roadshow – a practice we
have institutionalized over the past few years. This was
done in 2024 to discuss the intended changes to the
remuneration policy for the Supervisory Board, the
intended appointment of Mr M’Saad as ASM's new CEO,
and any other topics relevant to our shareholders. We
continued this practice at the start of 2025.
During these engagement sessions, our shareholders
have largely confirmed their support for the changes we
considered and the direction the company is taking.
During the CEO succession in 2024, a topic was raised
regarding the accelerated vesting of shares for exiting
‘good leavers’. Following conversations with
shareholders and in accordance with benchmark data,
we decided to adjust the long-term incentive plan rules
for Management Board members. We moved to a time-
based, pro-rated ‘at target’ vesting of shares instead of
full accelerated vesting.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
116
Didier Lamouche
Chair of the Nomination, Selection and
Remuneration (NSR) Committee
Remuneration report 2024
The Remuneration report for the financial year 2023 was
submitted to the 2024 Annual General Meeting for an
advisory vote, with 95.6% of the votes casting in favor.
In previous years, steps have been taken to increase the
level of transparency and disclosure of targets and how
these are linked to remuneration. In doing so, ASM
always keeps in mind the business-sensitive
(commercial and/or strategic) nature of the information.
This consideration is particularly important for ASM,
given the nature of our main competitors.
In the 2024 engagement sessions with shareholders and
proxy advisors, we received positive feedback on the
increased transparency regarding our remuneration
policies and their application.
However, while expressing a high level of support for our
actions and the remuneration report, some shareholders
asked for more transparency regarding the disclosure of
targets, especially with regards to non-financial STI
performance indicators and LTI performance indicators
ex-post. We have therefore taken further action in this
year’s remuneration report to increase transparency and
disclosure on these metrics. This year’s report has a
more straightforward structure and includes all relevant
information on remuneration for the Management Board
and the Supervisory Board in one place, rather than
across several sources as was unintentionally done in
previous years.
We trust you welcome these changes.
Outlook
In 2025, the Supervisory Board will propose to the AGM
the reappointment of Mr Paul Verhagen as CFO for a
two-year term, with remuneration in line with the
remuneration policy for the Management Board. To
further secure the capabilities of the Supervisory Board,
the Supervisory Board will also propose to the AGM in
2025 to reappoint Ms Pauline van der Meer Mohr, Mr
Adalio T. Sanchez, and Ms Stefanie Kahle-Galonske as
members of the Supervisory Board. Ms Kahle-Galonske’s
re-election is for one year only to ensure a smooth
transition as Chair of the Audit Committee to Ms Tania
Micki.
Additionally, as always, the NSR Committee and
Supervisory Board will continue to monitor trends in the
labor market and our (internal and external) business
environment. We’ll continue to focus on providing fair
and competitive remuneration, ensuring the right
balance between fixed and variable pay, and appropriate
pay in line with business performance. All of this is done
with the interests of the company, our shareholders, and
other stakeholders in mind.
We will continue to engage with our stakeholders on an
ongoing basis to make sure we capture any insights,
potential concerns, and valuable market practices that
might require us to constantly evaluate some elements
of our policy and practices. Another important focus area
is maintaining competitive remuneration policies to
attract and retain the best skills and competencies,
ensuring our continued success. This also means the
NSR Committee and the Supervisory Board will be
actively involved, working together with the
Management Board to strengthen the company’s
business processes and further develop our succession
plans for critical roles. Finally, since the remuneration
policy for the Management Board has been in place
since 2023, and the remuneration policy for the
Supervisory Board since 2024, there are no plans to
make changes to either policy in 2025.
As always, I’d like to thank my colleagues in the NSR
Committee for the intensive and fruitful discussions in
the past year, and their support in making sure our
remuneration practices remain in line with our
stakeholders' expectations, and are instrumental to the
company's continued success.
Didier Lamouche
Committee
26.2 Changes to the Management Board
remuneration policy
The remuneration policy for the Management Board was
approved at the 2023 AGM. In 2024, following questions
from investors during engagement sessions in February
2024, the Supervisory Board decided to update the
practice of accelerated ‘at target’ vesting of outstanding
LTI grants at the moment of exit of a member of the
Management Board and changed this into time-based,
pro-rated ‘at target’ vesting for 'good leavers'. No other
changes were made to the remuneration policy for the
Management Board in 2024. The Supervisory Board also
does not intend to make any changes to the policy in
2025.
Under the remuneration policy and its STI plan, financial
and non-financial objectives are set on an annual basis
and in accordance with the tactical and strategic
priorities of the company. In 2024, in contrast to 2023
when the same non-financial objectives and relative
weight per objective applied to both the CEO as well as
the CFO, different non-financial objectives were
applicable to the different members of the Management
Board (for more information, see the table later in this
section).
For the performance year 2025, the financial metrics will
be the same as in 2024. In 2025, the non-financial
objectives will be set around (i) sustainability (i.e.
Planet), as ASM remains committed to being responsible
stewards of the planet and its resources; (ii) safety, as it
remains important to maintain focus on safety progress,
even though ASM is doing very well in this area; and (iii)
people & organization, as the Management Board needs
to constantly build an organization and human resources
capable of handling high-growth pace, including the
continued transformation and enhancement of ASM’s
global business processes.
Together with the financial objectives, the following
measures and respective weights will be applicable to
the performance year 2025:
• Financial objectives (total weight 75%): Sales (25%),
EBIT (25%), and Free Cash Flow (25%). Please note
that given the ongoing volatility in the external
environment, the Supervisory Board could review the
appropriateness of free cash flow as a metric in due
course.
• Non-financial objectives (total weight 25%):
Sustainability (5%) and safety (5%) will apply to both
the CEO and CFO. The CEO will have specific
objectives related to ASM’s People agenda (15%),
while the CFO will have objectives related to the
transformation of ASM’s global businesses process
(7.5%) and of the Finance function (7.5%).
The metrics for the long-term incentive plan in 2025 will
also remain unchanged and are the same as the metrics
that were applicable in 2024: Revenue growth compared
to the WFE industry (50%), EBIT % (50%) and – as a
modifier – relative TSR (+/-35% adjustment).
In 2025, the NSR Committee will review the
compensation packages for the Executive Committee
members reporting to the Management Board to ensure
internal and external alignment and competitiveness.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
117
26.3 Management Board remuneration
policy
Introduction
ASM's Management Board remuneration policy was
adopted by the AGM on May 15, 2023. The 2023 integral
version of ASM's remuneration policy can be found on
our website.
As ASM’s remuneration philosophy for the Management
Board is to incentivize and reward performance, while
ensuring retention, motivation, competitiveness and
fairness, the purpose of the remuneration policy for
members of the Management Board of ASM is to provide
compensation that:
• motivates and rewards executives with a balanced
and competitive remuneration, in line with their role
and responsibilities;
• allows ASM to attract, reward, and retain highly
qualified executives with the required background,
skills and experience to implement ASM's strategy in a
global, fairly concentrated, highly competitive, and
dynamic industry with main competition being much
larger companies from the United States and Asia;
• ensures that short-term operational results and long-
term sustainable value creation are balanced;
• is transparent, fair, and reasonable, and aligns with
the interests of ASM, shareholders, and other
stakeholders in the medium- and long-term to deliver
sustainable performance in line with ASM's strategy,
purpose, and values; and
• leads to internally consistent pay levels considering
other remuneration programs and conditions for all
employees.
Overview of policy components
The aim of the remuneration policy for the members of
ASM's Management Board is to support the company’s
overall performance and sustainable long-term value
creation in a highly dynamic and competitive
environment, by directly linking remuneration to our
strategy, mission, and vision. The Management Board
remuneration policy is summarized in the below table.
Summary of 2023 remuneration policy Management Board
Total Direct Compensation (TDC)
Basis for benchmark against remuneration
peer group (more details on remuneration
peer group later in this section)
Market positioning for TDC is based on market median position for Target Total Cash (TTC, base salary plus STI) complemented with a
long-term incentive that is based on differentiated market levels per geographical location, as defined for each member of the
Management Board (Europe, and rest of the world, and the US) based upon the Remuneration peer group.
Value of respective items is specified in rest of the table.
Base salary (fixed remuneration)
Basic pay for the job responsibilities of
each Management Board position
•
Base salary for the members of the Management Board is derived from the outcome of the benchmark analysis.
•
The Supervisory Board reviews base salary on an annual basis and can, at their discretion, apply an annual increase to the base
salary based on market movement as well as adjustments made by the Remuneration peer group.
Annualized amounts:
• CEO: €710,000
• CFO: €604,800
Reflecting base salary as per May 2024
Short-term incentive (STI)
Aligning annual business objectives and
long-term strategy to drive pay for
performance
•
Performance is measured against pre-set performance criteria, both financial and non-financial, as determined by the Supervisory
Board at the beginning of the financial year.
•
Performance criteria and targets are defined by the Supervisory Board and may vary per year (depending on the specific focus that
the Supervisory Board wants to have in the year) and per member of the Management Board.
•
The financial performance criteria (aggregated relative weight in principle 75%) may include among other measures: Revenue
measures, margin measures, return measures and/or cash flow measures.
•
The non-financial indicators (aggregated relative weight in principle 25%) are set in accordance with ASM's long-term plan and are
based on the strategic focus. They may include, among others: ESG measures, operational measures, strategic measures, customer
measures and/or leadership measures.
•
CEO: ‘At target’ up to 125% of annual base salary, with a maximum up to
187.5% (i.e. 150% of the target incentive level, i.e. stretch level).
•
Other Members of the Management Board: Up to 80% of annual base salary,
with a maximum up to 120% (i.e. 150% of the target incentive level).
•
Performance targets are defined at ‘target’ level (representing the expected
nominal level of performance), ‘threshold’ level (below which performance is
deemed insufficient and hence triggers ‘zero’ pay-out for these criteria), and
‘stretch’ level (representing exceptional level of performance awarding
maximum level of pay-out).
•
For 2024 the following target incentive levels apply: 100% for the CEO and
80% of base salary for the CFO.
Remuneration element and its purpose
Design and link to strategy
Value
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
118
Long-term incentive (LTI)
Reward long-term value creation and
enhance alignment of the long-term
interests of the Management Board with
those of the company and shareholders
•
Performance-based share plan, providing for conditional rights to receive a certain amount of ASM shares, after a three-year cliff
vesting period, and subject to fulfilling the predetermined performance conditions and upon continued employment of the participant
at the vesting date.
•
Performance shares are granted in April of each year and the number of performance shares granted for ‘on target’ performance is
determined by the Supervisory Board at the beginning of the new three-year performance period.
•
ASM applies a face-value approach to define the number of shares to be granted, which is calculated as follows: Target level
(calculated based on annual base salary) divided by the average share price of ASM on the Euronext Amsterdam stock exchange on
the award date and the following four consecutive days. The award date is immediately following the date of the announcement of
the first quarter financial results in April for the year the award takes place.
•
Performance indicators are set for the duration of the remuneration policy and are revenue growth compared to market (WFE) and
average EBIT percentage measured over a three-year performance period. Both performance measures are equally weighted (50%
each).
•
It should be noted that WFE is a publicly available indicator, ASM publishes its revenue every quarter and the EBIT progression
roadmap is in line with long-term goals as communicated to the market in the CMD.
•
In addition, a relative Total Shareholder Return (TSR) indicator is applied as a modifier to the results. Based upon relative TSR
performance against the TSR peer group (more details later in this section) vesting will be adjusted. This modifier adds 35% if the
ranking is in the top quartile of the peer group and subtracts 35% if it is in the bottom quartile of the peer group with straight line
interpolation from 25th percentile to 75th percentile, only rewarding if TSR performance is above the median of the peer group.
•
Members of the Management Board are required to hold the vested performance shares for two years (‘Holding Period’) after the
vesting date. However, they are allowed to sell a part of the unconditional shares after three years for tax purposes.
•
The target level of the LTI is differentiated for Management Board members
based on geographical location of the respective individuals, whereby
distinction is made between Management Board members in Europe (and rest
of the world) and the US:
–
Up to 200% of annual base salary 'at target' for Management Board
members in Europe (and rest of the world other than US), with an overall
maximum up to 200% of target.
–
Up to 450% of annual base salary 'at target' for Management Board
members in the US, with an overall maximum of 200% of target.
–
This percentages applies when (i) the working location or contractual terms
of the Management Board member is the US, at the moment of hiring or
internal promotion or (ii) when a Management Board candidate, employed
outside the US, has an existing employment contract that is US home-
based (expat conditions).
•
For 2024, the following on-target grant levels apply: 450% of annual base
salary for the CEO (US-reference) and 160% for the CFO (Europe-reference).
.
Share Ownership Guidelines (SOG)
Aligning reward with the interests of
stakeholders and emphasizing confidence in
performance and strategy of ASM
• Members of the Management Board are required to hold ASM shares.
• All vested shares granted under ASM share-based compensation plans and any shares privately purchased are considered.
• Minimum shareholder requirement is at least twice the base salary as measured
at the start of each financial year.
Pension and other elements
Post-retirement and other benefits create
alignment with market practice
• Management Board members are entitled to pension and fringe benefits or perquisites such as a company car (or allowance),
representation and expense allowance, and medical, disability, and other insurances in line with local market practice.
• Additional benefits and allowances may be applicable in case of relocation or international assignment.
• Members of the Management Board are given the opportunity to participate in a defined contribution plan for their salary up to the
fiscal maximum (2024: €137,800).
• For the salary above this maximum, members of the Management Board are compensated with an amount equal to the age-dependent
employer pension contribution. The members of the Management Board have the option to participate in a net pension plan offered by
the company or to have the compensation paid out in cash.
• Pension contributions are age dependent and vary from 7.2% to 28.4% of the
pensionable salary.
• Members of the Management Board contribute 4.6% of their pensionable salary,
and ASM pays the remaining part.
Remuneration element and its purpose
Design and link to strategy
Value
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
119
Remuneration peer group
The remuneration peer group in principle consists of
companies ASM could hire from or could lose people to.
These companies are selected according to industry
comparability (complexity and geographical span), size
(revenues), (labor market) competition and is a mix of
European (2/3) and US companies (1/3). Market
capitalization is only a second factor. The peer group
includes the following 17 companies:
Aixtron SE, ams Osram AG, Applied Materials Inc, ASML
Holding NV, BE Semiconductor Industries NV, Entegris
Inc, Infineon Technologies AG, KLA Corp, Koninklijke KPN
NV, Lam Research Corp, MKS Instruments Inc, NXP
Semiconductors NV, Siltronic AG, SMA Solar Technology,
Soitec SA, Teradyne Inc, and VAT Group AG.
TSR peer group
The TSR peer group comprises companies that are
comparable to ASM on the following criteria: industry
(same and/or adjacent industry provided the company
operates in the same industry cycle), geographic focus,
size, share-price correlation and volatility, and market
cap. Currently, the TSR peer group consists of the
following 21 companies that have been selected by the
Supervisory Board, based on these criteria:
Aixtron SE, Alphawave IP Group PLC, ams Osram AG,
Applied Materials Inc, ASML Holding NV, BE
Semiconductors Industries NV, Entegris Inc,
Globalfoundries Inc, Infineon Technologies AG, KLA
Corp, Lam Research Corp, MKS Instruments Inc, NXP
Semiconductors NV, Siltronic AG, Soitec SA,
STMicroelectronics NV, SUESS MicroTec SE, Teradyne
Inc, Tokyo Electron Ltd, VAT Group AG and X Fab Silicon
Foundries EV.
The composition of the group may be adjusted over
time. In the case of a delisting of a peer group company,
the Supervisory Board will carefully consider an
appropriate replacement company.
Pay mix for members of the Management Board
The graphs below show the relative levels of fixed and
variable remuneration for ‘at target’ performance level for
the members of the Management Board:
Overall, the ‘at risk’ portion of the annual compensation is
85% for the CEO position and 71% for the CFO position.
CEO target performance
in %
15
85
Fixed remuneration
Variable remuneration
CFO target performance
in %
29
71
Fixed remuneration
Variable remuneration
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
120
26.4 Remuneration of the Management
Board in 2024
The 2024 Remuneration report refers to ASM's
remuneration policy as outlined in paragraph 26.3.
The remuneration of the Management Board for the
financial year 2024 reflects the implementation of and
complies with the 2023 remuneration policy for the
Management Board.
Total remuneration of Management Board
The following table provides an overview of the 2024
remuneration elements in € thousands for the CEO
(former and current) and the CFO, as recognized by the
company.
1
2
3
4
5
6
Fixed remuneration (K€)
Variable remuneration (K€)
Name of director
Base salary
Fringe benefits
Short-term cash incentive
(STI)
Share-based payment
expenses (LTI) 3
Pension expense (K€)
Other items (K€)
Total remuneration (K€)
Proportion of fixed and
variable remuneration
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
H. M'Saad 1,2
570
791
106
87
631
1,000
572
1,864
32
69
-
-
1,911
3,811
59 %
33 %
P.A.H. Verhagen
558
595
46
48
618
656
849
1,127
90
95
-
-
2,161
2,521
47 %
41 %
G.L. Loh 4,5
722
268
61
23
1,263
-
1,459
313
120
64
-
10,036
3,625
10,704
33 %
113 %
Total
1,850
1,654
213
158
2,512
1,656
2,880
3,304
242
228
-
10,036
7,697
17,036
1 CTO since May 16, 2022 and CEO since May 13, 2024. The amounts shown reflect his remuneration during his MB membership.
2 The amount for 2024 also includes the payout of accrued vacation hours in the US up to the appointment as CEO.
3 The remuneration reported as part of the LTI (share awards) is based on costs incurred under accounting values EU-IFRS. The costs of share awards are charged to the consolidated statement of profit or loss over the three-year vesting period
based on the number of awards expected to vest. For the first year we account at target, subsequently we apply the estimated number of share awards, and in the final performance year of the awards we update this estimate to the best estimated
number of awards which are anticipated to vest.
4 The 2024 amounts for Fixed remuneration, Variable remuneration and Pension expenses for Mr Loh reflect his departure in 2024.
5 The 2024 Other items include Mr Loh’s STI payout over 2024.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
121
Explanation of the table
1. Fixed remuneration
(1.1) Base salary is the fixed annual gross salary. The
salary for the CEO, Mr M'Saad, was set at €710,000 at
the moment of his appointment as CEO as per May 13,
2024. A salary increase of 7% for the CFO, Mr Verhagen,
has been implemented as of April 1, 2024, in line with
market movement in the Netherlands. The base salary
for the former-CEO, Mr Loh, remained unchanged in
2024 at €738,733. No salary increase was given to him
given that he stepped down as CEO as per May 13,
2024.
(1.2) Fringe benefits represent the value of benefits and
perquisites awarded, such as a company car, a
representation and expense allowance, the premium for
health and disability insurance, and social-security
contributions.
2. Variable remuneration
(2.1) Short-term incentive (STI). Each year, a short-term
incentive can be earned based on achieving specific
challenging targets. The short-term incentive recognizes
three levels: threshold, on-target, and stretch. The target
level is generally aligned with the budget as reviewed
and approved by the Supervisory Board. The target
performance level represents the expected performance
in a performance year. Achievement at target level
results in a payout of 100%. The stretch level is set to
promote extra-performance and results in 150% payout.
If the performance does not meet the threshold level,
the minimum performance level, the related part of the
bonus will be zero. If the actual realization is between
threshold and on-target or between on-target and
stretch, the payout will be based on the relative
deviation against these levels.
The targets are 75% based on company financial targets
(equally divided between revenue, EBIT, and free cash
flow) and 25% based on non-financial targets (consisting
of targets related to sustainability, safety, people, and
organizational effectiveness in 2024). The non-financial,
strategic targets are aligned with ASM’s most important
strategic priorities in a performance year.
STI realization
The excellent financial performance in 2024 resulted in
the realization of all financial metrics above the stretch
level. Performance on the non-financial objectives differs
between the objectives. Outstanding performance was
achieved on the sustainability (i.e. planet)-related
objectives, while performance on safety was just above
the threshold level. In addition, given the complexity of
the project to improve ASM’s enterprise business
systems and processes, and given the various
operational priorities, it was decided not to rush various
implementations and mitigate risks by allowing for
somewhat more time to secure realization. The
performance related to CSRD-readiness scored at
stretch levels and, in total, this results in an over-
achievement on STI (136% rounded – see table below)
for Mr Verhagen.
The results on the people-related objectives for Mr
M'Saad were above target. Therefore, in combination
with the above stretch level performance on the financial
objectives, Mr M’Saad overall realized an over-
achievement on STI too. The overall STI performance
achievement for Mr. M’Saad amounts to 141% (rounded –
see table below). The overall performance achievement
resulted in a STI payment of € 655,845 for Mr Verhagen
and € 999,680 for Mr M'Saad.
Mr Loh received a pro-rated STI pay-out ‘at target’
amounting to €385,000 for the year 2024.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
122
STI performance measures
Financials (Total weight: 75%)
Targets in accordance with budget as approved by Supervisory Board
Average result:
150%
Sales (Weight: 25%)
Revenue achievement at constant currencies (actual revenue recalculated at budget currency).
EBIT (Weight: 25%)
EBIT excluding one-off non-budgeted items (e.g. M&A and related PPA amortization).
Free cash flow (Weight: 25%)
Net cash flow from operating activities after investment activities excluding non-budgeted M&A and excluding ASMPT dividends.
Non-financials (Total weight: 25%)
Average result:
CEO: 113.2%
CFO: 92.2%
Planet (Weight: 6% for CEO and
CFO)
Continuation net-zero pathway
Threshold:
Target:
Stretch:
1. Renewable electricity
• 95% renewable electricity (global operations).
2. Establish roadmap
• Establish Scope 3.1 and 3.11 roadmaps for
2024-2027 by year-end.
1. Renewable electricity
• 100% renewable electricity (global
operations).
2. Establish roadmap
• Establish Scope 3.1 and 3.11 roadmaps for
2024-2027 by Q3, incl. setting relevant GHG
reduction targets.
. Renewable electricity
• 100% renewable electricity plus no increase in Scope 1 & 2
GHG emissions despite growth.
2. Establish roadmap
• Establish Scope 3.1 and 3.11 roadmaps for 2024-2027 by
Q3, incl. setting relevant GHG reduction targets and realize
first results in 2024.
Safety (weight: 4% for CEO and
CFO)
Total injury rate
Threshold:
Target:
Stretch:
• ≤ 0.40
• ≤ 0.33
• ≤ 0.28
STI realization 2023 performance year:
(achievement rate)
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
123
Trans4M!
(weight: 7.5% for CFO only)
Three-year program transforming and enhancing ASM’s global business processes through the upgrade of ASM’s enterprise systems.
Threshold:
Target:
Stretch:
• Achieved critical milestones towards ‘Go Live’
with three months delay vs plan.
• Achieved critical milestones towards ‘Go Live’
as per plan.
• Achieved critical milestones towards ‘Go Live’ three months
ahead of plan.
CSRD readiness
(weight: 7.5% for CFO only)
Prepare and be ready for all in-scope CSRD required disclosures.
Threshold:
Target:
Stretch:
• All in-scope CSRD required disclosures ready
in Jan 2025 as part of the 2024 Annual
Report.
• All in-scope CSRD required disclosures ready
before year-end, incl. unqualified assurance
statement for its CSRD reporting.
• All in-scope CSRD required disclosures ready before
November 2024, incl. unqualified assurance statement for its
CSRD reporting.
People
(weight: 15% for CEO only)
Continuation of ASM’s people roadmap, reflecting 1. Leadership & talent, 2. Culture & engagement, 3. Organizational design
Threshold:
1. Leadership & talent:
• Identify at least one 'ready-now' and one
'ready-later' successor
• All positions have emergency replacement
2. Culture & engagement - Via engagement
survey:
• Progress on ASM ACE behaviors across all
questions: 3.8 score.
• Inclusion index: 4.1 score.
• Diversity: 18% females in sub-board pool.
3. Organizational design
• Fit-for-future organizational design defined.
Target:
1. Leadership & talent:
• Identify at least one 'ready-now' and one
'ready-later' successor
• Concrete individual development plans (IDP)
for identified successors implemented
• All positions have emergency replacement
2. Culture & engagement - Via engagement
survey:
• Meaningful change across all questions on
ACE behaviors: 3.9 score.
• Inclusion index: 4.25 score.
• Diversity: 19% females in sub-board pool.
3. Organizational design
• Defined organizational design implemented.
Stretch:
1. Leadership & talent:
• Identify at least one 'ready-now' and one 'ready-
later' (ensure diverse pool) internal successor
• Concrete individual development plans (IDP) for identified
successors implemented
• If no successor identified, defined hiring plan for potential.
• All positions have emergency replacement
2. Culture & engagement - Via engagement survey:
• Meaningful change and ‘best practice’ benchmark for some
questions re ACE behaviors.
• Inclusion index: 4.5 score.
• Diversity: 20% females in sub-board pool.
3. Organizational design
• Fit-for-future organizational design implemented and
retention of all critical job holders.
• Organizational design parameters (e.g. span of control,
layers from CEO) significantly improved.
STI realization 2023 performance year:
(achievement rate)
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
124
(2.2) Share-based payments or long-term incentives
(LTI). This is a multi-year variable payment of which the
value is the value of a performance share award that has
become unconditional after a performance period of
three years. At the end of 2024, the three-year
performance period for the 2022 performance share
award came to an end. The unconditional award is the
result of targets on revenue growth compared to market
and average EBIT as set in 2022. As per the grant of
2023, relative TSR performance will also be applied to
determine the unconditional award to vest in 2026.
Revenue growth is being communicated publicly every
quarter and after every calendar year and can be
compared to a publicly available index (WFE industry
growth) making this measure and its achievement
transparently disclosed. Performance on relative TSR is
also transparent given the ex-ante disclosure of the peer
group and publicly available information. As information
on EBIT achievement is considered to be commercially
sensitive, ASM therefore only discloses achievement
relative to target.
As of the end of 2024, the three-year performance
period of the performance shares granted to Mr
Verhagen on April 21, 2022 (2,204 shares), has been
completed. Over the three-year performance period,
ASM's revenue growth outperformed the WFE market
indicator by 34%, resulting in an achievement of 150% on
this specific measure. Performance on EBIT % exceeded
the stretch level as pre-set by the Supervisory Board,
resulting in an actual achievement of 150% on this metric
too. ASM clearly delivered a strong EBIT performance.
Even with continuously increasing investments in R&D
throughout the period and significant planned increases
in SG&A in 2022-2023 to strengthen the organization,
the EBIT % margin improved in the course of the three-
year period to a solid level of 28% by 2024. In absolute
terms, EBIT increased by 67% during the three-year
period. Overall, this therefore results in a vesting
percentage of the performance shares on April 21, 2025
of 150%. The performance shares granted to Mr Loh in
his capacity as CEO in April 2022 (3,631 shares) and
April 2023 (4,052 shares) have all vested ‘at target’
performance level as per May 14, 2024. At the moment
of the 2022 grant (April 21, 2022), Mr M’Saad was not
yet appointed as member of the Management Board
(appointment as per May 16, 2022) and hence didn’t
receive performance shares.
Outstanding performance shares
For 2024, based on the remuneration policy, the
Supervisory Board awarded the following on-target
values to:
• Mr M'Saad, CEO: €3,195,000 (5,349 shares)
• Mr Verhagen, CFO: €967,680 (1,620 shares)
• No conditional performance shares were granted to
Mr Loh.
The following table shows the outstanding performance
shares granted to members of the Management Board
up until and including 2024, and held by members of the
Management Board as per December 31, 2024:
Management
Board member
Grant date
Status
Number of shares at
grant date
Performance
adjustment
Vested in 2024
Outstanding
December 31, 2024
Fair value at grant
date
Vesting date
End of holding period
G.L. Loh 1
Apr 21, 2021
Conditional
4,184
1,602
(5,786)
-
€245.40
Apr 21, 2024
Apr 21, 2026
G.L. Loh 1
Apr 21, 2022
Conditional
3,631
-
(3,631)
-
€313.72
Apr 21, 2025
May 13, 2024
G.L. Loh 1
Apr 26, 2023
Conditional
4,052
-
(4,052)
-
€311.47
Apr 27, 2026
May 13, 2024
P.A.H. Verhagen 2 4
Jul 28, 2021
Conditional
2,159
756
(2,915)
-
€291.97
Jul 28, 2024
Jul 28, 2026
P.A.H. Verhagen 2
Apr 21, 2022
Conditional
2,204
1,102
-
3,306
€313.72
Apr 21, 2025
Apr 21, 2027
P.A.H. Verhagen 2
Apr 26, 2023
Conditional
2,583
-
-
2,583
€311.47
Apr 27, 2026
Apr 27, 2028
P.A.H. Verhagen 2
Apr 24, 2024
Conditional
1,620
-
-
1,620
€581.81
Apr 24, 2027
Apr 24, 2029
H. M'Saad 3
Apr 26, 2023
Conditional
8,099
-
-
8,099
€311.47
Apr 27, 2026
Apr 27, 2028
H. M'Saad 3
Apr 24, 2024
Conditional
5,349
-
-
5,349
€581.81
Apr 24, 2027
Apr 24, 2029
Total
33,881
3,460
(16,384)
20,957
1 CEO until May 13, 2024.
2 CFO since June 1, 2021.
3 CTO since May 16, 2022 and CEO since May 13, 2024.
4 As part of the approved contractual terms and conditions 997 restricted share units have been granted to the CFO at hire on July 28, 2021
with a grant value of € 300.000, of which 332 did vest on July 28, 2022, 332 on July 28, 2023 and 333 on July 28,2024.
Introduction
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Sustainability statements
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Financial statements
Appendix
ASM Annual Report 2024
125
The shares will become unconditional after three years,
depending on whether predetermined targets are
achieved or not.
3. Pension
As of 2015, members of the Management Board no
longer participate in the industry-wide pension fund.
They have opted to participate in a defined contribution
plan for their full-time salary up to €137,800. ASM
reimburses an amount equal to the employer pension
contribution for their full-time salary above this amount.
Members of the Management Board can opt either to
participate in a net pension plan offered by the company
or to have the cost for participating paid out directly.
Pension contributions vary from 7.2% to 28.4% of the
pensionable salary, depending on age. Members of the
Management Board contribute 4.6% of their pensionable
salary, and ASM pays the remaining part. There are no
arrangements regarding early retirement. Mr M’Saad
continued his participation in the US 401(k) retirement
savings plan for his salary that is being paid out in the
US.
4. Other items
Non-recurring items, which represent in 2024 an
additional payroll tax to the company due to the vesting
of already granted shares in previous years related to Mr
Loh’s departure as CEO as per the AGM of May 13, 2024,
subject to article 32bb of the Dutch Wage Tax Act,
including the pro-rated ‘at target’ payout of Mr Loh’s
short-term incentive over 2024.
5. Total remuneration
Value equals sum of 1, 2, 3, and 4 as described above.
6. Proportion of fixed and variable remuneration
• (6.1) The relative proportion of fixed remuneration: By
dividing the sum of fixed components (column 1,
column 4, and the fixed part of the pension expenses
in column 3) by the amount of total remuneration
(column 5), multiplied by 100.
• (6.2) The relative proportion of variable remuneration:
By dividing the sum of the variable components
(column 2 and the variable part of the pension
expense in column 3, if any) by the amount of total
remuneration (column 5), multiplied by 100.
Management services agreements
All members and former members of the Management
Board have a management services agreement with
ASM or one of its related subsidiaries, in accordance
with Dutch law:
• Mr M'Saad started on May 16, 2022 as a Management
Board member, and was appointed for a four-year
term based on a management services agreement. At
the 2024 AGM he was appointed CEO until the AGM
in 2026 under an amended management services
agreement.
• Mr Verhagen started on June 1, 2021, and was
appointed for a four-year term based on a
management services agreement. The Supervisory
Board intends to nominate Mr Verhagen for a second
term as member of the Management Board and Chief
Financial Officer for a two-year term until the AGM in
May 2027, when Mr Verhagen plans to retire. His
intended reappointment will be submitted to the AGM
on May 12, 2025. In light of his reappointment, Mr
Verhagen entered into a new, restated management
service agreement.
• Mr Loh started on May 18, 2020, and was appointed
for a four-year term based on a management services
agreement. His term ended as per the AGM of May
13, 2024. Mr Loh’s exit conditions are fully in line with
the remuneration policy without exceptions.
All management services agreements with members of
the Management Board contain specific provisions
regarding benefits upon termination of those
agreements. If ASM gives notice of termination of the
agreement for reasons which are not exclusively or
mainly found in acts or omissions on the side of the
Management Board member or in case of a termination
of the agreement of a Management Board member with
mutual consent between such Management Board
member and the company, the member of the
Management Board is eligible for a severance payment
of maximum one-year base salary and to garden leave.
The treatment of incentive awards will be determined by
the Supervisory Board and depends on the reason and
circumstances for termination, considering usual
practices for these types of situations as well as
applicable plan rules. The notice periods are set at six
months if the termination of the agreement is initiated by
ASM and at three months if the member of the
Management Board terminates the agreement.
Claw-back and ultimum remedium
In exceptional circumstances, the Supervisory Board will
have the discretionary authority to recover any paid
bonus and awarded shares if evidence shows payments
and awards have been awarded based on incorrect
financial or other data (claw-back).
If a variable component conditionally awarded in a
previous financial year would, in the opinion of the
Supervisory Board, produce an unfair result due to
extraordinary circumstances during the period in which
the predetermined indicators have been or should have
been achieved, the Supervisory Board has the authority
to adjust the value of bonus and shares downwards or
upwards (ultimum remedium).
The NSR Committee concluded for 2024 that no
circumstances have been identified that result in any
adjustments or claw-back of variable remuneration.
Introduction
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Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
126
Comparative information on the change of
remuneration and company performance
The figures presented are indexed compared to the
previous financial year.
Annual change
2020/2019
2021/2020
2022/2021
2023/2022
2024/2023 Information regarding 2024
Management Board remuneration
G.L. Loh, CEO (as of May 18, 2020, until May 13, 2024)
- %
210 %
120 %
132 %
295 % Former CEO retired May 13, 2024
P.A.H. Verhagen, CFO (as of June 1, 2021)
- %
- %
159 %
121 %
117 %
H. M'Saad, CTO (as of May 16, 2022) and CEO (as of May 13, 2024)
- %
- %
- %
212 %
199 %
P.A.M. van Bommel, CFO (until May 17, 2021)
101 %
66 %
- %
- %
- % Former CFO retired May 17, 2021
C.D. del Prado, CEO (until May 18, 2020)
64 %
- %
- %
- %
- % Former CEO retired May 18, 2020
Company performance
Revenue
103 %
130 %
139 %
109 %
111 %
EBIT
142 %
150 %
128 %
103 %
123 %
Free cash flow
48 %
222 %
25 %
667 %
123 %
Qualitative/non-financial strategic objectives/targets
88 %
98 %
98 %
80 %
102 %
Average remuneration of employees (K€)
2020
2021
2022
2023
2024
Average remuneration of employees
88
87
99
111
130
CEO pay ratio
27
29
27
31
33
The ratio of the CEO's remuneration and the average
remuneration of all other employees (the pay ratio) is
calculated by dividing the CEO's remuneration by the
average remuneration of all employees. The CEO's
remuneration is the total annualized base salary and
bonus of the CEO as well as share-based payment
(extrapolated to a full-year LTI value based upon three
consecutive yearly grants with each a 36-month vesting
period). The average remuneration of all employees is
calculated by dividing the total personnel costs (wages,
salaries, bonuses, and share-based payments), minus
the CEO's remuneration, by the total number of
employees (minus CEO). Although the pay ratio is in line
with the anticipated internal development of pay levels,
it is higher compared to last year because of the higher
LTI ‘at target’, but still at risk, for the new CEO. The pay
ratio is at the lower end compared to the AEX listed
companies.
The 2024 ASM Remuneration report considers the draft
guidelines to specify the standard presentation of the
Remuneration report as stated in Directive 2007/36EC of
the European Parliament, and amended by Directive (EU)
2017/828, Article 9b (6).
This report is the Remuneration report required in
accordance with article 2:135b of the Dutch Civil Code
and the Dutch Corporate Governance Code.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
127
26.5 Remuneration of the Supervisory
Board
The 2024 Remuneration report refers to the
remuneration policy for members of the Supervisory
Board of ASM, which can be found on asm.com.
Supervisory Board remuneration policy changes
The current remuneration policy was adopted by the
AGM on May 13, 2024, and took effect from January 1,
2024.
The intent of the remuneration policy is to provide
remuneration aligned with comparable peer companies
in the Netherlands and Europe, considering the scope of
the company. It aims to motivate and reward Supervisory
Board members with balanced compensation that
matches their roles and responsibilities. Additionally, it
helps ASM to attract, reward, and retain highly qualified,
independent, and high-caliber Supervisory Board
members with the necessary background, experience,
and broad skill set.
The main changes in the remuneration policy as adopted
by the AGM in 2024 compared to the previous
remuneration policy of the Supervisory Board include the
following:
• Increased fee for Supervisory Board members and its
committees;
• Removal of the cap on travel allowances;
• Introduction of a fee per additional meeting in excess
of two hours above the regular cadence of the
Supervisory Board or its committees in special
business circumstances after prior approval by the
Chair of the Supervisory Board; and
• Introduction of a Technology Committee and the
option to establish other committees.
The Supervisory Board doesn't intend to make any
changes to the remuneration policy in 2025.
Summary of remuneration of the Supervisory
Board
This table provides an overview and description of the
elements of the 2024 remuneration policy for the
Supervisory Board.
Fixed remuneration
Description
Value
Fixed remuneration in cash consisting
of a retainer fee for the Chairperson
and Members, and additional fees
related to the responsibilities in the
respective Committees
Chair of the Supervisory Board
€ 130,000
Member of the Supervisory Board
€ 80,000
Chair of the Audit Committee
€ 25,000
Member of the Audit Committee
€ 18,000
Chair of the Nomination, Selection and
Remuneration Committee
€ 22,000
Member of the Nomination, Selection
and Remuneration Committee
€ 15,000
Chair of the Technology Committee
€ 22,000
Member of the Technology Committee
€ 15,000
Chair other committee
€ 22,000
Member other committee
€ 15,000
Travel expenses
Description
Value
Actual and reasonable travel expenses
are reimbursed together with a travel
allowance following physical
attendance of meetings
Continental travels
€2,500 (per meeting)
Intercontinental travels
€5,000 (per meeting)
Other expenses
Description
Value
Compensation for additional meetings (lasting more than
two hours in excess of the regular meeting cadence in case
of special business circumstances, provided that the Chair
of the Supervisory Board has given prior approval).
€2,500 (per extra meeting).
Reimbursement of actual expenses
Actual expenses
Loans and guarantees
Description
Value
No personal loans, guarantees, or advance payments are
provided.
Not applicable
Shares and share ownership
Description
Value
No shares or rights on shares are granted as part of the
remuneration.
Not applicable
Other arrangements
Description
Value
No severance, change-in-control, or claw-back
arrangements are in place.
Not applicable
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
128
The following tables present information on the sole remuneration from the company (including its subsidiaries) for
services in all capacities to all current and former members of the Supervisory Board:
Year ended December 31,
Annual fee
Committee
fee
Allowances 4
Total remuneration
2024
2024
2024
2024
2023
Supervisory Board:
P.F.M. van der Meer Mohr
130.0
26.4
17.5
173.9
117.4
S. Kahle-Galonske
80.0
34.5
17.5
132.0
96.0
M.J.C. de Jong
80.0
24.6
7.5
112.1
81.0
D.R. Lamouche
80.0
28.6
17.5
126.1
92.0
M. de Virgiliis 1
29.5
6.6
5.0
41.1
88.5
A.T. Sanchez
80.0
31.5
30.0
141.5
105.9
T. Micki 2
80.0
18.0
17.5
115.5
-
M. van den Brink 3
50.8
21.2
5.0
77.0
-
Total
610.3
191.4
117.5
919.2
580.8
1 Until May 13, 2024
2 As of January 1, 2024
3 As of May 13, 2024
4 Consist of allowances for (inter)continental meetings.
Annual change
2020/2019
2021/2020
2022/2021
2023/2022
2024/2023
Supervisory Board remuneration
P.F.M. van der Meer Mohr 1
- %
- %
806 %
114 %
148 %
J.C. Lobbezoo
100 %
38 %
- %
- %
- %
M.C.J. van Pernis
100 %
119 %
60 %
- %
- %
U.H.R. Schumacher
38 %
- %
- %
- %
- %
S. Kahle-Galonske
100 %
100 %
168 %
95 %
138 %
M.J.C. de Jong
100 %
106 %
141 %
94 %
138 %
D.R. Lamouche
- %
166 %
168 %
95 %
137 %
M. de Virgiliis
- %
161 %
167 %
92 %
46 %
A.T. Sanchez 2
- %
- %
827 %
100 %
134 %
T. Micki
- %
- %
- %
- %
- %
M. van den Brink
- %
- %
- %
- %
- %
1 Due to her appointment in 2021, Ms Van der Meer Mohr received limited payments in 2021 compared to 2022
(€12,800 vs €103,200).
2 In 2021, Mr Sanchez received limited payments compared to 2022 (€12,800 vs €105,900).
Any recommended changes to the remuneration of members of the Supervisory Board will be submitted to the
Annual General Meeting for approval.
Derogations from remuneration policy
The Supervisory Board has not derogated or deviated from the remuneration policy.
ASM does not provide any loans, advanced payments, deposits, or related guarantees to the Supervisory Board. In
the 2024 Annual General Meeting, an amendment to the articles of association was approved pursuant to which an
indemnity was added to the articles in favor of the members of the Management Board and the Supervisory Board.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
129
27. External auditor
In accordance with Dutch law, ASM’s external auditor is
appointed by the Annual General Meeting of
Shareholders and is nominated for appointment by the
Supervisory Board upon advice from the Audit
Committee and the Management Board. Our current
external auditor, KPMG Accountants N.V. ('KPMG'), was
reappointed as external auditor by the 2023 AGM for the
reporting years 2023 and 2024.
The external auditor is present at our AGM to respond to
questions, if any, from the shareholders about the
auditor’s report on the financial statements.
The Audit Committee has determined that the provision
of services by KPMG and its member firms is compatible
with maintaining KPMG's independence. All audit and
permitted audit-related services provided by KPMG and
its member firms during 2024 were pre-approved by the
Audit Committee.
Audit committee policies and
procedures
The Audit Committee has adopted the following policies
and procedures for pre-approval of all audit and
permitted non-audit services provided by our external
auditor.
Audit services
Management submits to the Audit Committee for pre-
approval the scope and estimated fees for specific
services directly related to performing the independent
audit of our statutory and consolidated financial
statements for the current year.
Audit-related services
The Audit Committee may preapprove expenditures up
to a specified amount for services included in identified
service categories that are related extensions of audit
services and are logically performed by the auditors.
Additional services exceeding the specified preapproved
limits require specific Audit Committee approval.
Tax services
The Audit Committee may preapprove expenditures up
to a specified amount per engagement and in total for
identified services related to tax matters. Additional
services exceeding the specified preapproved limits, or
involving service types not included in the preapproved
list, require specific Audit Committee approval.
Other services
In the case of specified services for which utilizing our
external auditor creates efficiencies, minimizes
disruption or preserves confidentiality, or for which
management has determined that our external auditor
possesses unique or superior qualifications to provide
such services, the Audit Committee may preapprove
expenditures up to a specified amount per engagement
and in total. Additional services exceeding the specified
preapproved limits, or involving service types not
included in the preapproved list, require specific Audit
Committee approval.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
130
28. Consolidated financial statements
133
29. ASM International N.V. Financial
statements
175
Introduction
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Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
131
Financial
statements
Financial statements table of contents
28. Consolidated financial statements
133
28.1 Consolidated statement of profit or loss
133
28.2 Consolidated statement of comprehensive income
134
28.3 Consolidated statement of financial position
135
28.4 Consolidated statement of changes in equity
136
28.5 Consolidated statement of cash flows
137
28.6 Notes to the consolidated financial statements
138
Note 1. General information
138
Note 2. Right-of-use assets
146
Note 3. Property, plant and equipment
148
Note 4. Evaluation tools at customers
149
Note 5. Goodwill
149
Note 6. Other intangible assets
150
Note 7. Investments in associates
152
Note 8. Inventories
154
Note 9. Accounts receivable
154
Note 10. Other current assets
155
Note 11. Cash and cash equivalents
155
Note 12. Equity
155
Note 13. Employee benefits
158
Note 14. Provision for warranty
160
Note 15. Accrued expenses and other payables
160
Note 16. Contingent consideration payable
160
Note 17. Credit facility
161
Note 18. Financial instruments and financial risk management
161
Note 19. Commitments and contingencies
165
Note 20. Litigation
165
Note 21. Segment disclosure
165
Note 22. Revenue
166
Note 23. Income taxes
167
Note 24. Expenses by nature
170
Note 25. Earnings per share
171
Note 26. Board remuneration
171
Note 27. Related party transactions
172
Note 28. Principle Auditor's fees and services
172
Note 29. Subsidiaries
173
Note 30. Subsequent events
174
29. ASM International N.V. Financial statements
175
29.1 Company balance sheet
175
29.2 Company statement of profit or loss
176
29.3 Notes to the Company financial statements
177
Note 1. Summary of material accounting policies
177
Note 2. Goodwill
177
Note 3. Investments and loans to subsidiaries
178
Note 4. Cash and cash equivalents
178
Note 5. Equity
179
Note 6. Amounts due from / to subsidiaries
181
Note 7. Expenses by nature
181
Note 8. Personnel expenses
181
Note 9. Commitments and contingencies
182
Note 10. Share ownership of the Management Board and Supervisory Board
182
Note 11. Auditor's fees and services
182
Note 12. Subsequent events
182
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Sustainability statements
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Financial statements
Appendix
ASM Annual Report 2024
132
28. Consolidated financial statements
28.1 Consolidated statement of profit or loss
Revenue
22
2,634,331
2,932,724
Cost of sales
(1,362,635)
(1,451,351)
Gross profit
1,271,696
1,481,373
Other income
69
7,391
Operating expenses:
Selling, general and administrative
24
(308,727)
(316,811)
Research and development
24
(309,297)
(369,818)
Total operating expenses
(618,024)
(686,629)
Result from operations
653,741
802,135
Finance income
18
14,826
21,658
Finance expense
18
(13,600)
(10,582)
Foreign currency exchange gain (loss)
18
(21,375)
45,048
Net finance income (costs)
(20,149)
56,124
Share in income of investments in associates
7
17,540
9,643
Reversal of impairment of investments in associates, net
7
215,389
-
Result before income taxes
866,521
867,902
Income taxes
23
(114,448)
(182,168)
Net earnings from operations, attributable to common
shareholders
752,073
685,734
Year ended December 31,
(€ thousand, except per share data)
Notes
2023
2024
Per share data
25
Basic net earnings per share (€):
From operations
15.26
13.95
Diluted net earnings per share (€):
From operations
15.18
13.89
Weighted average number of shares (thousand):
Basic
49,286
49,165
Diluted
49,555
49,386
Year ended December 31,
(€ thousand, except per share data)
Notes
2023
2024
The notes on the following pages are an integral part of these consolidated financial statements.
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Strategy and performance
Sustainability statements
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Financial statements
Appendix
ASM Annual Report 2024
133
28.2 Consolidated statement of comprehensive income
Year ended December 31,
(€ thousand)
Notes
2023
2024
Net earnings from operations, attributable to common shareholders
752,073
685,734
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation
13
479
725
Share in other comprehensive (loss) income of investments in associates
7
(618)
(1,276)
(139)
(551)
Items that may be subsequently reclassified to profit or loss:
Foreign currency translation effect 1
(90,908)
69,957
Other comprehensive income for the year, net of income tax
(91,047)
69,406
Total comprehensive income, attributable to common shareholders
12
661,026
755,140
1 The year-on-year change is mostly explained by a weakened € compared to USD in 2024, while in 2023 the € strengthened against all major currencies (HKD, USD, SGD, KRW, JPY).
The notes on the following pages are an integral part of these consolidated financial statements.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
134
28.3 Consolidated statement of financial position
Assets
Right-of-use assets
2
35,395
36,525
Property, plant and equipment
3
384,949
482,901
Evaluation tools at customers
4
79,597
109,539
Goodwill
5
320,167
321,318
Other intangible assets
6
705,624
815,590
Investments in associates
7
861,937
903,625
Other investments
11,307
19,821
Deferred tax assets
23
179
34,651
Other non-current assets
15,778
18,810
Employee benefits
13
2,919
3,816
Total non-current assets
2,417,852
2,746,596
Inventories
8
525,690
567,007
Accounts receivable
9
487,727
788,958
Contract assets
22
59,392
57,745
Income taxes receivable
23
29,957
4,836
Other current assets
10
68,845
70,277
Cash and cash equivalents
11
637,264
926,501
Total current assets
1,808,875
2,415,324
Total assets
4,226,727
5,161,920
December 31,
(€ thousand)
Notes
2023
2024
Equity and liabilities
Equity
12
3,226,811
3,747,155
Other liabilities
22,684
23,589
Contingent consideration payable
16
88,304
-
Deferred tax liabilities
23
150,147
190,944
Total non-current liabilities
261,135
214,533
Accounts payable
177,686
282,554
Provision for warranty
14
22,716
33,401
Income taxes payable
23
21,925
66,243
Contract liabilities
22
300,241
485,732
Accrued expenses and other liabilities
15
216,213
235,300
Contingent consideration payable
16
-
97,002
Total current liabilities
738,781
1,200,232
Total liabilities
999,916
1,414,765
Total equity and liabilities
4,226,727
5,161,920
December 31,
(€ thousand)
Notes
2023
2024
The notes on the following pages are an integral part of these consolidated financial statements.
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Financial statements
Appendix
ASM Annual Report 2024
135
28.4 Consolidated statement of changes in equity
Net earnings
-
-
-
-
752,073
-
752,073
Other comprehensive income
12
-
-
-
-
-
(91,047)
(91,047)
Total comprehensive income
-
-
-
-
752,073
(91,047)
661,026
Dividend paid to common shareholders
-
-
-
-
(123,383)
-
(123,383)
Compensation expense share-based payments
13
-
-
37,308
-
-
-
37,308
Exercise stock options out of treasury shares
13
18,249
-
(1,965)
2,828
-
-
863
Vesting restricted shares out of treasury shares
13
41,681
-
(11,980)
11,980
-
-
-
Purchase of common shares
12
(264,503)
-
-
(100,928)
-
-
(100,928)
Issue of common shares used for share-based performance programs
12
80,000
3
-
(3)
-
-
-
Other movements of investments in associates:
Dilution
7
-
-
-
-
2,606
-
2,606
Balance as of December 31, 2023
49,201,746
1,977
71,323
(89,569)
3,139,245
103,835
3,226,811
Net earnings
-
-
-
-
685,734
-
685,734
Other comprehensive income
12
-
-
-
-
-
69,406
69,406
Total comprehensive income
-
-
-
-
685,734
69,406
755,140
Dividend paid to common shareholders
-
-
-
-
(135,487)
-
(135,487)
Cancellation of common shares out of treasury shares
12
-
(4)
(59,230)
59,234
-
-
-
Compensation expense share-based payments2
13
-
-
48,557
-
-
-
48,557
Vesting restricted shares out of treasury shares
13
124,460
-
(51,325)
51,325
-
-
-
Purchase of common shares
12
(228,389)
-
-
(151,366)
-
-
(151,366)
Issue of common shares used for share-based performance programs
12
-
-
-
-
-
-
-
Other movements in investments in associates:
Dilution
7
-
-
-
-
3,500
-
3,500
Balance as of December 31, 2024
49,097,817
1,973
9,325
(130,376)
3,692,992
173,241
3,747,155
(€ thousand except for share data)
Notes
Number of common
shares outstanding
Common shares
Capital in excess of
par value
Treasury shares at
cost
Retained earnings
Other reserves 1
Total equity
Balance as of January 1, 2023
49,326,319
1,974
47,960
(3,446)
2,507,949
194,882
2,749,319
1 Other reserves consist of the currency translation reserve, remeasurement on net defined benefit and the reserve for proportionate share in other comprehensive income of investments in associates. See note 12.
2 Share-based payments include income taxes recognized directly in shareholders' equity of €7.0 million income.
The notes on the following pages are an integral part of these consolidated financial statements.
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Financial statements
Appendix
ASM Annual Report 2024
136
28.5 Consolidated statement of cash flows
Cash flows from operating activities
Net earnings from operations
752,073
685,734
Adjustments to reconcile net earnings to net cash from operating activities
Depreciation, amortization and impairments
2,3,4,6
180,896
195,800
Net loss (gain) on sale of property, plant and equipment
3
185
(7,036)
Share-based compensation
13
37,308
41,576
Net finance (income) costs
(9,466)
(24,759)
Share in income of investments in associates
7
(17,539)
(9,643)
Impairment (reversal of impairment) of investments in associates, net
7
(215,389)
-
Income tax
23
114,448
182,168
Changes in evaluation tools at customers
4
(32,218)
(47,080)
Changes in employee benefits pension plans
98
(11)
Income tax paid
(118,766)
(97,563)
Operating cash flows before changes in working capital
691,630
919,186
Decrease (increase) in working capital:
Accounts receivable
67,660
(294,635)
Other current assets
(21,817)
(1,522)
Inventories
(3,537)
(31,961)
Provision for warranty
(10,220)
9,933
Contract assets and liabilities
21,485
184,598
Accounts payable, accrued expenses and other payables
(9,314)
112,055
Net cash from operating activities
735,887
897,654
Year ended December 31,
(€ thousand)
Notes
2023
2024
Cash flows from investing activities
Capital expenditures property, plant and equipment
3
(154,103)
(167,895)
Proceeds from sale of property, plant and equipment
3
3,558
8,817
Capitalized development expenditures
6
(147,220)
(166,343)
Capital expenditures intangible assets
6
(16,389)
(30,492)
Dividend received from associates
7
30,753
13,668
Other investments
(5,641)
(7,721)
Net cash used in investing activities
(289,042)
(349,966)
Free cash flow 1
446,845
547,688
Cash flows from financing activities
Payment of lease liabilities
2
(12,602)
(14,177)
Purchase of treasury shares
12
(100,928)
(151,366)
Proceeds from issuance of treasury shares
13
863
-
Dividends to common shareholders
(123,383)
(135,487)
Net cash used in financing activities
(236,050)
(301,030)
Foreign currency translation effect on cash and cash equivalents
7,154
42,579
Net increase (decrease) in cash and cash equivalents
217,949
289,237
Cash and cash equivalents at beginning of year
11
419,315
637,264
Cash and cash equivalents at end of year
11
637,264
926,501
Year ended December 31,
(€ thousand)
Notes
2023
2024
1 Free cash flow is a non-IFRS performance measure. It is calculated as cash flows from operating activities after investing activities. Refer
to chapter 34 'Non-IFRS performance measures'.
The notes on the following pages are an integral part of these consolidated financial statements.
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ASM Annual Report 2024
137
28.6 Notes to the consolidated financial statements
Note 1. General information
ASM International N.V. (ASM, or the company) is a Dutch public liability company domiciled in the Netherlands with
its principal operations in Europe, the United States of America, and Asia. The company dedicates its resources to
the research, development, manufacturing, marketing and servicing of equipment and materials used to produce
mainly semiconductor devices. The company is registered at Versterkerstraat 8, 1322 AP Almere, the Netherlands.
The company is registered with the Dutch Commercial Register under number 30037466.
The company's shares are listed for trading on the Euronext Amsterdam Stock Exchange (symbol ASM).
The accompanying consolidated financial statements include the financial statements of ASM International N.V. and
its consolidated subsidiaries (together also referred to as ASM, or the company). ASM's subsidiaries are listed in
Note 29 and investments in associates are listed in Note 7.
Basis for accounting
The consolidated financial statements for the year ended December 31, 2024 have been prepared in accordance
with IFRS as endorsed by the European Union (EU-IFRS) and also comply with the financial reporting requirements
included in Section 362(9) of Part 9, Book 2 of the Dutch Civil Code.
The consolidated financial statements have been prepared by the Management Board of the company and
authorized for issue on March 6, 2025, and will be submitted for adoption to the Annual General Meeting of
Shareholders (AGM) on May 12, 2025.
The consolidated financial statements will be filed with the AFM and at the Trade Register of the Chamber of
Commerce in Almere, the Netherlands, after ASM publishes them on its website, and in addition within eight days of
adoption by the 2025 AGM.
Functional and presentation currency
The consolidated financial statements are presented in euros (€), which is the company's functional currency. All
amounts have been stated in thousands of euros and rounded to the nearest thousand (which might result in
rounding differences), unless otherwise indicated.
Basis of preparation
The consolidated financial statements have been prepared under the historical cost convention, unless otherwise
indicated. The company applies the going concern basis in preparing its consolidated financial statements.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
A number of the company’s accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique.
The company has an established approach with respect to the measurement of fair values. If third-party information,
such as broker quotes or pricing services, is used to measure fair values, the company assesses and documents the
evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of
IFRS, including the level in the fair-value hierarchy, in which such valuations should be classified.
Fair values are categorized into different levels in a fair-value hierarchy based on the inputs used in the valuation
techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair-value hierarchy,
then the fair-value measurement is categorized in its entirety in the same level of the fair-value hierarchy as the
lowest level input that is significant to the entire measurement.
Further information about the assumptions made in measuring fair values is included in the following notes:
• Note 7 - Investments in Associates;
• Note 13 - Employee benefits; and
• Note 18 - Financial instruments and financial risk management.
Use of estimates
In preparing these consolidated financial statements, management has made judgments, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized
prospectively.
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ASM Annual Report 2024
138
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment to the carrying amounts of assets and liabilities within the year ended December 31, 2024 is included in
the following notes:
• Notes 3, 4, 5, 6 - Valuation of non-financial assets; and
• Note 8 - Valuation of allowance for obsolescence inventories.
Consideration has been given to the potential financial impacts of climate change related risks on the carrying value
of the company's non-current assets (e.g., goodwill, other intangibles, PP&E) through a qualitative review of the
company’s climate change risk assessment. In addition, the company included sensitivity tests into the impairment
test to address the potential increase in expenses due to climate change.
This review did not identify any material financial reporting impacts.
Summary of material accounting policies
Accounting policies
The company has consistently applied the following accounting policies to all periods presented in these
consolidated financial statements, except for changes in material accounting policies and reclassification adjustment
listed below.
Changes in material accounting policies
Application of new and revised IFRS.
New and amended IFRS Standards that are effective for the current year
The accounting policies applied in the financial statements are the same as those applied in the last annual financial
statements, except for the IFRS standards and interpretations effective on January 1, 2024. These include
amendment to IAS 1, IFRS 16, IAS 7 and IFRS 7. The amendments have been assessed for their potential impact and
do not have a material effect on ASM’s (consolidated) financial statements. The company has not early adopted any
other standard, interpretation or amendment that has been issued but is not yet effective.
Business combinations
The company accounts for business combinations using the acquisition method when the acquired set of activities
and assets meets the definition of a business and control is transferred to the company. In determining whether a
particular set of activities and assets is a business, the company assesses whether the set of assets and activities
acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to
produce outputs.
The company accounts for business combinations using the acquisition method when control is transferred to the
company. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable
net assets acquired.
Goodwill is capitalized as the excess of the costs of an acquired subsidiary, net of the amounts assigned to
identifiable assets acquired and liabilities incurred or assumed. Acquisition-related costs are expensed when
incurred in the period they arise or the service is received.
Any contingent consideration payable is measured at fair value at the acquisition date. The contingent consideration
is remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent
consideration are recognized in profit or loss.
Consolidation
The consolidated financial statements include the accounts of ASM and all of its subsidiaries where ASM holds a
controlling interest. Non-controlling interest is disclosed separately, where appropriate, in the consolidated financial
statements.
Control is achieved when ASM has the power over an investee; exposure, or rights, to variable returns from its
involvement with the investee; and the ability to use its power over the investee to affect the amount of the
investor's returns. ASM reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
As from the date these criteria are met, financial data of the relevant subsidiary are included in the consolidation and
deconsolidated from the date on which ASM's control ceases.
Loss of control
Upon loss of control, ASM derecognizes the assets and liabilities of the subsidiary. Any surplus or deficit arising on
the loss of control is recognized in profit or loss. ASM retains any interest in this subsidiary, then such interest is
measured at fair value at the date on which control is lost. Subsequently, it is accounted for as an equity-accounted
investee or as an available-for-sale financial asset, depending on the level of influence retained.
Subsidiaries
Subsidiaries are entities controlled by the company. The financial statements of subsidiaries are included in the
consolidated financial statements from the date on which control commences until the date on which control ceases.
Foreign currency translation
The individual financial statements of each group entity are presented in their local functional currency. For the
purpose of the consolidated financial statements, the results and financial position of each entity is expressed in
euros, which is ASM's functional currency and the presentation currency for the consolidated financial statements.
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ASM Annual Report 2024
139
Foreign currency transactions
In preparing the financial statements of the individual entities, transactions in foreign currencies are recorded at the
exchange rates on the date of the transactions. At each balance sheet date, monetary items denominated in foreign
currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value
that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was
determined.
Exchange rate differences arising on the settlement of monetary items, and on the translation of monetary items, are
recognized in the consolidated statement of profit or loss in the period in which they arise. Exchange rate
differences arising on the translation of non-monetary items carried at fair value are recognized in the consolidated
statement of profit or loss for the period except for differences arising on the translation of non-monetary items in
respect of which gains and losses are recognized directly in equity.
Foreign operations
For the purpose of presenting consolidated financial statements, assets and liabilities of foreign operations are
translated into euros at the exchange rates at the reporting date. The income and expenses of foreign operations are
translated into euros at the exchange rates at the dates of the transactions.
Foreign currency differences are recognized in OCI and accumulated in the translation reserve.
When a foreign operation is disposed of in its entirety or partially such that control or significant influence is lost, the
cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of
the gain or loss on disposal. If the company disposes of part of its interest in a subsidiary but retains control, then the
relevant proportion of the cumulative amount is reattributed to non-controlling interest. When the company disposes
of only part of an associate while retaining significant influence, the relevant proportion of the cumulative amount is
reclassified to profit or loss.
Segment reporting
ASM has one reportable segment, consistent with the internal reporting provided to the Chief Executive Officer
(CEO), who is the Chief Operating Decision Maker (CODM).
The company manufactures and sells equipment used in wafer processing, encompassing the fabrication steps in
which silicon wafers are layered with semiconductor devices. The operation is a product-driven organizational unit
comprised of manufacturing, service, and sales operations in Asia, Europe, and the United States. The performance
of the individual product lines is reviewed by the CODM based on its revenues, gross margin and EBIT. The company
operates under a uniform global operating strategy. The CODM alone makes operating decisions regarding strategic
investments and resource allocation based on aggregated information of the overall company's operation. Therefore,
the company's operation do not represent separate operating nor reportable segments.
Property, plant and equipment
Items of property, plant and equipment are measured at cost, less accumulated depreciation and any accumulated
impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted
for as separate items (major components) of property, plant and equipment.
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual
values using the straight-line method over their estimated useful lives, and is generally recognized in profit or loss.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.
The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:
Land
Infinite
Building and leasehold improvements
1-25 years
Machinery equipment
2-10 years
Furniture and fixtures and other equipment
2-10 years
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain on disposal of an item of property, plant and equipment
is recognized in profit or loss and included in 'other income'. Any loss is recognized as part of impairment expenses.
Intangible assets
Goodwill
The company accounts for business combinations using the acquisition method when control is transferred to the
company. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable
net assets acquired. Any goodwill that arises is tested annually for impairment.
Goodwill represents the excess of the costs of an acquisition over the fair value of the amounts assigned to assets
acquired and liabilities incurred or assumed of the acquired subsidiary at the date of acquisition. Goodwill on
acquisition of subsidiaries is allocated to cash generating units (CGUs) for the purpose of impairment testing. The
allocation is made to those CGUs that are expected to benefit from the business combination in which the goodwill
arose. Goodwill is tested for impairment annually and whenever events or changes in circumstances indicate that the
carrying amount of the goodwill may not be recoverable. If the recoverable amount of the CGU is less than the
carrying amount of the unit, the impairment loss is recognized. An impairment loss recognized for goodwill is not
reversed in a subsequent period. Goodwill is stated at cost less accumulated impairment losses.
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ASM Annual Report 2024
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The company’s goodwill arising on the acquisitions of subsidiaries is described in Note 5 'Goodwill'.
The company’s goodwill arising on the acquisition of an associate is described in Note 7 'Investments in Associates'.
Other intangible assets
Other intangible assets include capitalized development expenses, software, purchased technology, and remaining
other intangible assets. Other intangible assets that are acquired by the company with finite useful lives are
measured at cost less accumulated amortization and any accumulated impairment losses.
In determining the capitalization of development expenses, the company makes estimates and assumptions based
on expected future economic benefits generated by products that are the result of these development expenses.
Other important estimates and assumptions are the required internal rate of return, the distinction between research,
development and high-volume manufacturing, and the estimated useful life.
Development expenses are capitalized when all of the following criteria are demonstrated by the entity:
• The technical feasibility of completing the intangible asset so that it will be available for use or sale;
• Its intention to complete the intangible asset and use or sell it;
• Its ability to use or sell the intangible asset;
• How the intangible asset will generate probable future economic benefits;
• The availability of adequate technical, financial and other resources to complete the development and to use or
sell the intangible asset; and
• Its ability to reliably measure the expenditure attributable to the intangible asset during its development.
The company capitalizes development expenses that meet the above-mentioned criteria in its consolidated financial
statements. Subsequent to initial recognition, internally-generated intangible assets are reported at cost less
accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are
acquired separately.
Amortization of capitalized development expenses is calculated using the straight-line method over the estimated
useful lives of the developed product. Amortization starts when the developed product is ready for its intended use.
In the development cycle, this is when the product is transferred from the validation (beta) phase to high-volume
manufacturing.
Amortization method, useful life, and residual value are reviewed at each reporting date with the effect of any
changes in estimate accounted for on a prospective basis.
The estimated useful lives of other intangible assets for current and comparative periods are as follows:
Development cost
5 years
Software
3 years
Purchased technology
5-15 years
Other intangibles
1-17 years
Investments in associates
Investments in associates are investments in entities in which ASM can exert significant influence but which ASM
does not control, generally having between 20% and 50% of the voting rights. These entities are accounted for using
the equity method and are initially recognized at cost. Dividend income from the company’s associated companies is
recognized when the right to receive payment is established. Their carrying value includes goodwill identified upon
acquisition, net of any accumulated impairment.
When ASM’s share of losses in an associate equals or exceeds its interest in the associate, including any other
receivables for which settlement is neither planned nor likely to occur in the foreseeable future, ASM does not
recognize further losses, unless ASM has obligations to or made payments on behalf of the associate.
At each reporting date, the company determines if there is any objective evidence that the associate is impaired. An
impairment, being the difference between the recoverable amount of the associate and its carrying value, is
recognized in the consolidated statement of profit or loss.
ASM does not separately test associates' underlying assets for impairment. However, ASM recognizes its share of
any impairment charge recorded by an investee and considers the effect, if any, of the impairment on the basis
difference in the assets giving rise to the investee’s impairment charge. A loss in value of an investment which is
significant or prolonged will be an indicator to test for impairment. Significant is defined as at least 20% on reporting
date. Prolonged is defined as measured below cost for more than nine months.
Equity method investments are tested for prolonged decline in value. If the fair value of an investment is less than its
carrying value, the company determines whether the decline in value is temporary or prolonged. A prolonged decline
in value is measured as of a balance sheet date. If after a prior recognized impairment the fair value is more than its
carrying value, this impairment is reversed to the extent that the recoverable amount of the net investment
subsequently increases. The determination of whether an investment is impaired is made at the individual security
level multiplied by our number of shares held in each reporting period.
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Financial statements
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ASM Annual Report 2024
141
Evaluation tools at customers
Evaluation tools at customers are systems generally delivered to customers under evaluation and include substantial
customization by our engineers and R&D staff in the field. Evaluation tools are recorded at cost and depreciated
using the straight-line method over their estimated useful life of five years, or their shorter economic life. The
depreciation expenses are in general reported as research and development expenses, unless the evaluation tool
primarily serves commercial activities it is reported as cost of sales.
On final written technical acceptance and purchase order from the customer, the purchase consideration is
recognized as revenue at a point in time and the carrying value of the evaluation system is recognized as cost of
sales. In the circumstance that the system is returned, at the end of the evaluation period, a detailed impairment
review takes place, and future sales opportunities and additional costs are identified. It is only when the recoverable
amount is below the carrying value of the evaluation tool that an additional depreciation is recognized. The remaining
carrying value is recognized as finished goods in inventories.
Inventories
Inventories are stated at the lower of cost or net realizable value. The cost of inventories is based on the first-in,
first-out principle. Costs include net prices paid for materials purchased, charges for freight and custom duties,
production labor costs and factory overhead. Allowances are made for slow-moving, obsolete or unsellable
inventory.
Allowances for obsolescence of inventory are determined based on the expected demand as well as the expected
market value of the inventory. The company regularly evaluate the value of our inventory of components and raw
materials, work in progress, and finished goods, based on a combination of factors including the following:
forecasted sales, historical usage, product end of lifecycle, estimated current and future market values, service
inventory requirements, and new product introductions, as well as other factors. Purchasing requirements and
alternative uses for the inventory are explored within these processes to mitigate inventory exposure. The company
record write-downs for inventory based on the above factors and take into account worldwide quantities and
demand into our analysis.
Financial instruments
The company classifies non-derivative financial assets based on the business model for managing the assets and
their contractual cash flow characteristics. These assets are categorized as either: Amortized cost, fair value through
other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL). The company classifies non-
derivative financial liabilities as amortized costs.
Non-derivative financial assets and financial liabilities – Recognition and derecognition
The company initially recognizes receivables on the date when they are originated. Receivables comprise account
(trade) and other receivables and cash and cash equivalents. Receivables are measured at amortized cost using the
effective interest method, less any impairment. Financial assets and financial liabilities are initially recognized on the
trade date when the entity becomes a party to the contractual provisions of the instrument.
The company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the
risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such
derecognized financial asset that is created or retained by the company is recognized as a separate asset or liability.
The company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or
expired.
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position
when, and only when, the company currently has a legally enforceable right to offset the amounts and intends either
to settle them on a net basis or to realize the asset and settle the liability simultaneously.
Non-derivative financial assets – Measurement
Loans and receivables are initially measured at fair value plus any directly attributable transaction costs. Subsequent
to initial recognition, they are measured at amortized cost using the effective interest method.
Accounts receivable
A significant percentage of accounts receivable is derived from revenue to a limited number of large multinational
semiconductor device manufacturers located throughout the world. In order to monitor potential credit losses, the
company performs ongoing credit evaluations of our customers' financial condition. An allowance for doubtful
accounts is maintained for potential credit losses based upon management's assessment of the expected
collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the
adequacy of the allowance. In making this assessment, management takes into consideration any circumstances of
which the company are aware regarding a customer's inability to meet its financial obligations, aging of the accounts
receivable, expected lifetime losses; and our judgments as to potential prevailing economic conditions in the industry
and their potential impact on the company's customers.
The expected credit loss allowance is based on historical experience, credit evaluations, specific customer-
collection history, and any customer-specific issues ASM has identified. Changes in circumstances, such as an
unexpected adverse material change in a major customer’s ability to meet its financial obligation to ASM or its
payment trends, may require us to further adjust our estimates of the recoverability of amounts due to ASM. This
could have an adverse material effect on ASM’s financial condition and results of operations.
Cash and cash equivalents
Cash and cash equivalents consist of bank deposits and investment in money market funds that invest in marketable
debt obligations and securities of governments, corporates and financial institutions and other short-term highly
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liquid investments with original maturity of three months or less. Bank overdrafts are included in notes payable to
banks in current liabilities.
Non-derivative financial liabilities – Measurement
Other non-derivative financial liabilities are initially measured at fair value less any directly attributable transaction costs.
Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest method.
Share capital
Preference share capital
Preference share capital is classified as equity if it is non-redeemable, or redeemable only at the company’s option,
and any dividends are discretionary. Discretionary dividends thereon are recognized as distributions within equity
upon approval by the company’s shareholders.
Preference share capital is classified as a financial liability if it is redeemable on a specific date or at the option of the
shareholders, or if dividend payments are not discretionary. Non-discretionary dividends thereon are recognized as
interest expense in profit or loss as accrued.
Repurchase and reissue of common shares (treasury shares)
When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly
attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares
and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the
amount received is recognized as an increase in equity and the resulting surplus or deficit on the transaction is
accounted for at average cost and presented within capital in excess of par value.
Issuance of shares by an equity-accounted investee
Associates might yearly issue common shares pursuant to their employee share incentive scheme. The effect of
these issuances is a dilution of the company's ownership in the associate. The company recognizes the impact of
these issuances directly into equity.
Comprehensive income
Comprehensive income consists of net earnings (loss) and other comprehensive income. Other comprehensive
income includes gains and losses that are not included in net earnings, but are recorded directly in equity.
Impairment
Non-derivative financial assets
Financial assets, other than those at fair value through profit or loss, are assessed using an 'expected credit
loss' (ECL) model. In accordance with the model the company allocate a probability of loss to each financial asset,
based on data that is determined to be predictive of the risk of loss and applying experienced credit judgment.
ASM measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at
12-month ECLs:
• Debt securities that are determined to have low credit risk at the reporting date; and
• Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected
life of the financial instrument) has not increased significantly since initial recognition.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and
when estimating ECLs, ASM considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis, based on ASM's
historical experience and informed credit assessment, that includes forward-looking information. Lifetime ECLs are
the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after
the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum
period considered when estimating ECLs is the maximum contractual period over which ASM is exposed to credit
risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all
cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the
cash flows that ASM expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
Equity-accounted investees
An impairment loss in respect of an equity-accounted investee is measured by comparing the recoverable amount of
the investment with its carrying amount. An impairment loss is recognized in profit or loss, and is reversed if there
has been a favorable change in the estimates used to determine the recoverable amount.
Non-financial assets
At each reporting date, the company reviews the carrying amounts of its non-financial assets (other than inventories
and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists,
then the asset’s recoverable amount is estimated. Goodwill and assets not yet available for its intended use are
tested annually for impairment.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows
from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a
business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the
combination.
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The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal.
Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any
goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata
basis.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortization, if no impairment loss had been recognized.
Commitments and contingencies
The company has various contractual obligations such as purchase commitments and commitments for capital
expenditure. These obligations are generally not recognized as liabilities on the company's statement of financial
position but are disclosed in the notes to the consolidated financial statements.
Cash flow statement
The cash flow statement has been prepared using the indirect method.
Revenue recognition
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts
collected on behalf of third parties. The company recognizes revenue when it transfers control over a product or
service to a customer. Depending on the contract, the company obtain normally a right to payment for our equipment
upon shipment and on completion of installation. Right to payment for our spares and services occurs upon shipment
or completion of the service unless described otherwise.
Revenue streams
The company generates revenue primarily from the sales of equipment and sales of spares & services. The products
& services described below by nature, can be part of both revenue streams. The revenue streams are disclosed in
Note 22 'Revenue'.
Nature of goods and services
The following table contains a description of principal activities from which the group generates its revenue.
The company applied the practical expedient of IFRS 15.121 and therefore have not disclosed information on the
remaining performance obligations of a contract (in aggregate) as the performance obligation is part of a contract
that has an original expected duration of one year or less. Generally, the remaining performance obligations of a
contract concern the tools to be shipped, unsatisfied promises as part of a bundled agreement or volume purchase
agreement and installation and qualification services.
Products and services
Nature, timing of satisfaction of performance obligation and significant payment terms
Equipment
Revenue from equipment is recognized at a point in time when the performance obligation is
satisfied, when control transfers. This is usually upon shipment depending on incoterms. The
amount of revenue recognized is based on the amount of the transaction price that is allocated
to the performance obligation. The total consideration of the contract is allocated between all
distinct performance obligations in the contract based on their stand-alone selling prices. The
stand-alone selling prices are mostly determined based on other stand-alone sales that are
directly observable or based on the expected cost plus a margin approach. Any customer
discounts and credits, within volume purchase agreements or bundled agreements, are
considered as a reduction of the transaction price, unless this is/can be considered as
consideration for a distinct good or service.
Installation
The customer simultaneously consumes and receives the benefits provided by the performance
of the installation. As such, transfer of control takes place over the period of installation from
delivery through customer acceptance, measured on a straight-line basis, as our performance is
satisfied evenly over this period of time.
Spares
Revenue from spares is recognized at a point in time when the performance obligation is
satisfied, when the control transfers. This is usually upon shipment depending on incoterms.
The amount of revenue recognized is based on the amount of the transaction price that is
allocated to the performance obligation. Any customer discounts and credits, within a volume
purchase agreements, are considered as a reduction of the transaction price, unless this is/can
be considered as consideration for a distinct good or service.
Revenue on royalties
and licenses for
technology included in
equipment and/or spares
The fixed price royalty is a right to use the licenses and revenue is recognized at a point in time
that the license is transferred to the customer. For the sales-based royalty, the performance
obligation is satisfied when the license is transferred to the customer. Given this is earlier than
when the sales occur, revenue should be recognized when the sales occur.
Outcome based
("support") services
The customer simultaneously consumes and receives the benefits provided by the performance
of the support. For the majority of support services transfer of control takes place over the
period of support.
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Cost of sales
Cost of sales mainly comprises direct costs such as labor, materials, cost of warranty, depreciation, shipping and
handling costs, and related overhead costs.
Research and development expenses
Research and development expenses are expenditures relating to a company's efforts to develop, design, and
enhance its products, services, technologies, or processes. Research and development expenses comprise of direct
costs allocated to research and development projects and mainly consists of labor. Research and development
expenses also includes depreciation expenses of evaluation tools at customers supporting the companies research
and development activities, allocated cost center costs like lab costs, and costs relating to prototype and
experimental products.
Selling, administrative and general expenses
Selling, general and administrative expenses comprise all direct and indirect selling costs, operational overhead
costs, and administrative expenses unrelated to cost of sales or research and development expenses.
Warranty
The company provides maintenance on our systems during the warranty period, on average one year after
installation & qualification (or 15 months upon shipment, whichever comes first). Costs of warranty includes the cost
of labor and material necessary to repair a product during the warranty period. The company accrues for the
estimated cost of the warranty on products shipped in a provision for warranty, upon recognition of the sale of the
product. The costs are estimated based on historical expenses incurred and on estimated future expenses related to
current revenue, and are updated periodically. Actual warranty costs are charged against the provision for warranty.
The actual warranty costs may differ from estimated warranty costs, and adjusted our provision for warranty
accordingly. Future warranty costs may exceed our estimates, which could result in an increase of our cost of sales.
Income tax
Income tax expense comprises current and deferred tax. It is recognized in the statement of profit or loss except to
the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive
income.
Current tax
The current corporate income tax charge recognized in the consolidated statement of profit or loss is calculated in
accordance with the prevailing tax regulations and rates, taking into account non-taxable income and non-
deductible expenses. The current income tax expense reflects the amount for the current reporting period that the
company expects to recover from or pay to the tax authorities. Current income tax related to items recognized
directly in equity is recorded in equity and not in the consolidated statement of profit or loss. ASM’s management
periodically evaluates positions taken in the tax returns regarding situations in which applicable tax regulations are
subject to interpretation, and establishes provisions when deemed appropriate. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to
income tax, if any. Measurement of the tax payable or receivable for uncertain tax positions is based on
management’s best estimate of the amount of tax benefit that will be lost. Current tax also includes any tax arising
from dividends and royalties. Current tax assets and liabilities are offset only if certain criteria are met (IAS 12).
Deferred tax
Deferred income tax positions are recognized for temporary differences between the tax basis of assets and
liabilities and their carrying values in ASM’s consolidated statement of financial position.
Deferred tax assets are recognized for deductible temporary differences, the carry forward of unused tax credits,
and any unused tax losses. Deferred tax assets are recognized only to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilized. Both the recognized and
unrecognized deferred tax assets are reassessed at each reporting date. Deferred tax assets are recorded for
deductible temporary differences associated with investments in subsidiaries and are recorded only to the extent
that it is probable that the temporary differences will reverse in the foreseeable future, and taxable profit will be
available against which the temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences except when they affect neither the profit or
loss reported in the consolidated statement of profit or loss nor the taxable profit or loss. Also, no deferred tax
liabilities are recorded for taxable temporary differences associated with investments in subsidiaries when the timing
of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will
not reverse in the foreseeable future.
Deferred tax positions are stated at nominal value and are measured at the corporate income tax rates the company
expects to be applicable in the year when the asset is realized or liability is settled based on enacted or substantially
enacted tax laws and reflects uncertainty related to income tax, if any.
Deferred income tax assets and liabilities are netted if there is a legally enforceable right to set off current tax assets
against current tax liabilities, deferred income tax assets and deferred income tax liabilities related to income taxes
levied by the same taxation authority on the same taxable entity, and there is an intention to settle on a net basis.
Retirement benefit costs
The company has retirement plans covering substantially all employees. The principal plans are defined contribution
plans, except for the plans of the company's operations in the Netherlands and Japan. The company's employees in
the Netherlands participate in a multi-employer defined benefit plan. Payments to defined contribution plans and the
multi-employer plan are recognized as an expense in the consolidated statement of profit or loss as they fall due.
The company accounts for the multi-employer plan as if it were a defined contribution plan, since the manager of the
plan is not able to provide the company with the required company-specific information to enable the company to
account for the plan as a defined benefit plan.
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The company's employees in Japan participate in defined benefit plans. Pension costs in respect to this defined
benefit plan are determined using the projected unit credit method. These costs primarily represent the increase in
the actuarial present value of the obligation for pension benefits based on employee service during the year and the
interest on this obligation in respect to employee service in previous years, net of the expected return on plan
assets.
For the defined benefit plan, the company recognizes in its consolidated statement of financial position an asset or a
liability for the plan's over funded status or underfunded status respectively. When the calculation results in a
potential asset for the company, the recognized asset is limited to the present value of economic benefits available
in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the
present value of economic benefits, consideration is given to any applicable minimum funding requirements.
Actuarial gains and losses are recognized when incurred.
Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid
contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is
available.
Share-based payments
The costs relating to employee shares (compensation expense) are recognized based upon the grant date fair value
of the shares. The estimated fair value at grant date of shares is based on the share price of the ASM share at grant
date minus the discounted value of expected dividends during the vesting period.
The grant date fair value of the shares is expensed on a straight-line basis over the vesting period, based on the
company’s estimate of shares that will eventually vest. The impact of the true-up of the estimates is recognized in
the consolidated statement of profit or loss in the period in which the revision is determined. The total estimated
share-based compensation expense, determined under the fair value-based method is amortized proportionally over
the option vesting periods.
Note 2. Right-of-use assets
The company leases many assets, including land, buildings, houses, motor vehicles, machinery and equipment.
Leases typically run up to a period of five years, some with an option to renew the lease after the end of the non-
cancellable period. Lease payments are renegotiated on a periodic basis; timing is dependent on the region and type
of lease. The company has not entered into any sublease arrangements.
The company has applied the exception not to recognize right-of-use assets and lease liabilities for short-term
leases (lease term of 12 months or less) and leases of low-value assets (up to the amount of €5,000 new asset
value, such as water/ air purifiers).
Right-of-use assets
Land and
buildings
Motor vehicles
Other machinery
and equipment
Total
Balance January 1, 2023
29,476
1,417
770
31,663
Additions
9,824
1,096
1,320
12,240
Modifications and reassessments
5,383
(71)
483
5,795
Depreciation for the year
(10,905)
(1,104)
(613)
(12,622)
Impairment charges
(940)
-
-
(940)
Foreign currency translation effect
(690)
(33)
(18)
(741)
Balance December 31, 2023
32,148
1,305
1,942
35,395
Additions
7,900
1,113
110
9,123
Modifications and reassessments
4,557
162
236
4,955
Depreciation for the year
(11,947)
(1,286)
(634)
(13,867)
Impairment charges
-
-
-
-
Foreign currency translation effect
874
(8)
53
919
Balance December 31, 2024
33,532
1,286
1,707
36,525
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ASM Annual Report 2024
146
Amounts recognized in profit or loss
(€ thousand)
2023
2024
Leases under IFRS 16
Interest on lease liabilities
705
800
Depreciation expenses
12,622
13,867
Impairment charges
(940)
-
Expenses relating to short-term and low value leases
500
634
Total
12,887
15,301
Amounts recognized in statement of cash flows
2023
2024
Total cash outflow for leases
12,602
14,177
Extension options
The extension options held are exercisable only by the company and not by the lessors. The company assesses at
lease commencement date whether it is reasonably certain to exercise the extension options. The company
reassesses whether it is reasonably certain to exercise the options at year-end for material lease components, if
there is a significant event or significant changes in circumstances within its control.
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Note 3. Property, plant and equipment
The changes in the amount of property, plant and equipment are as follows:
Land, buildings and
leasehold improvements
Machinery and
equipment
Furniture and fixtures and
other equipment
Assets under construction
Total
At cost
Balance January 1, 2023
171,450
349,978
44,355
43,096
608,879
Additions
440
4,237
460
148,966
154,103
Disposals
(10,569)
(8,323)
(2,208)
-
(21,100)
Transfer from assets under construction
36,305
84,933
20,741
(141,979)
-
Foreign currency translation effect
(7,320)
(17,155)
(2,176)
(123)
(26,774)
Balance December 31, 2023
190,306
413,670
61,172
49,960
715,108
Additions
2,487
615
2,823
161,970
167,895
Disposals
(275)
(7,580)
(2,616)
-
(10,471)
Transfer from assets under construction
5,455
49,435
12,325
(67,215)
-
Foreign currency translation effect
2,008
7,702
225
1,880
11,815
Balance December 31, 2024
199,981
463,842
73,929
146,595
884,347
Accumulated depreciation and impairment
Balance January 1, 2023
44,422
227,707
24,697
-
296,826
Depreciation for the year
9,433
45,002
8,225
-
62,660
Impairment charges
-
-
-
1,223
1,223
Disposals
(10,081)
(5,906)
(1,543)
-
(17,530)
Foreign currency translation effect
(1,374)
(10,404)
(1,242)
-
(13,020)
Balance December 31, 2023
42,400
256,399
30,137
1,223
330,159
Depreciation for the year
10,552
52,516
9,661
-
72,729
Impairment charges
-
-
-
-
-
Disposals
(171)
(6,814)
(2,130)
-
(9,115)
Foreign currency translation effect
648
6,774
251
-
7,673
Balance December 31, 2024
53,429
308,875
37,919
1,223
401,446
Carrying amounts
December 31, 2023
147,906
157,271
31,035
48,737
384,949
December 31, 2024
146,552
154,967
36,010
145,372
482,901
Useful lives in years
1-25
2-10
2-10
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148
Note 4. Evaluation tools at customers
The changes in the amount of evaluation tools are as follows:
December 31,
2023
2024
At cost
Balance at beginning of year
101,073
107,411
Evaluation tools shipped
50,639
63,328
Evaluation tools sold and returns
(39,047)
(33,049)
Foreign currency translation effect
(5,254)
3,841
Balance at end of year
107,411
141,531
Accumulated depreciation
Balance at beginning of year
32,397
27,814
Depreciation for the year
17,529
20,425
Evaluation tools sold and returns
(20,626)
(16,801)
Foreign currency translation effect
(1,486)
554
Balance at end of year
27,814
31,992
Carrying amount at beginning of year
68,676
79,597
Carrying amount at end of year
79,597
109,539
Useful lives in years:
5
Evaluation tools enable ASM to win new business and expand its technological footprint by gaining penetration at
new customers and with new applications.
Note 5. Goodwill
The carrying amount of the goodwill is related to acquisitions in the following cash-generating units:
ALD
PEALD
SiC Epi
Total
Balance January 1, 2023
2,611
27,388
290,819
320,818
Foreign currency translation effect
-
(651)
-
(651)
Balance December 31, 2023
2,611
26,737 290,819 320,167
Foreign currency translation effect
-
1,151
-
1,151
Balance December 31, 2024
2,611
27,888 290,819 321,318
We perform an annual impairment test at the same moment of each year (performed in the fourth quarter, with the
figures as of 30 September) or if events or changes in circumstances indicate that the carrying amount of the assets
at risk (goodwill, other non‑current assets, purchased technology, capitalized development, working capital) exceeds
its recoverable amount. For our impairment test and the determination of the recoverable amount, a discounted
future cash flow approach is used which makes use of our estimates of future revenues, driven by assumed market
growth and estimated costs as well as appropriate discount rates.
The material assumptions used for the discounted future cash flows of the cash-generating units (CGUs) are:
• an average discount rate of 8.6% (2023: 9.5%) representing the pre-tax weighted average cost of capital;
• external market segment data (e.g., TechInsights, Gartner), historical data and strategic plans to estimate cash-
flow growth per product line; and
• cash-flow calculations are limited to four years of cash flow; after these four years, perpetuity growth rates are
set based on the market maturity of the products. For all products, the perpetuity growth rates used are 1% or
less.
These estimates are consistent with the plans and estimated costs we use to manage the underlying business. We
expect the demand for these technologies to continue beyond a period of four years and therefore we have included
perpetuity growth rates in our assumptions. Based on this analysis, management concluded that as per
December 31, 2024 the recoverable amount of the CGUs exceeded the carrying value.
Sensitivity analysis showed that no reasonable possible change in the estimated cash flows or the discount rate
used in calculating the fair value would result in the carrying amount of the assets at risk (including goodwill)
materially exceed the fair value. Sensitivity analysis also includes additional sensitivity checks to address the
potential increase in costs due to climate change.
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149
Note 6. Other intangible assets
Other intangible assets include capitalized development expenditure, software developed or purchased (including
licenses) for internal use, and purchased technology from third parties. The changes in the amount of other
intangible assets are as follows:
Development costs
Software
Purchased technology
Other intangibles
Total
At cost
Balance January 1, 2023
545,165
40,628
220,862
89,400
896,055
Additions
147,220
15,602
-
787
163,609
Reclassification
-
-
(613)
613
-
Disposals
-
(152)
-
-
(152)
Foreign currency translation effect
(28,435)
(357)
(687)
7
(29,472)
Balance December 31, 2023
663,950
55,721
219,562
90,807
1,030,040
Additions
166,343
30,086
-
406
196,835
Disposals
-
(862)
-
-
(862)
Derecognition
(103,265)
-
-
-
(103,265)
Foreign currency translation effect
(860)
1,541
1,387
(120)
1,948
Balance December 31, 2024
726,168
86,486
220,949
91,093
1,124,696
Accumulated amortization and impairment losses
Balance January 1, 2023
204,735
30,452
13,196
1,568
249,951
Amortization for the year
43,802
3,057
14,021
22,567
83,447
Impairments
2,475
-
-
-
2,475
Reclassification
-
-
(92)
92
-
Disposals
-
-
-
-
-
Foreign currency translation effect
(11,293)
(211)
44
5
(11,455)
Balance December 31, 2023
239,719
33,298
27,169
24,232
324,418
Amortization for the year
65,901
3,497
14,065
4,868
88,331
Impairments
448
-
-
-
448
Derecognition
(103,265)
-
-
-
(103,265)
Disposals
-
(862)
-
-
(862)
Foreign currency translation effect
(248)
183
241
(140)
36
Balance December 31, 2024
202,555
36,116
41,475
28,960
309,106
Carrying amounts
December 31, 2023
424,231
22,423
192,393
66,575
705,622
December 31, 2024
523,613
50,370
179,474
62,133
815,590
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Strategy and performance
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Leadership and governance
Financial statements
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ASM Annual Report 2024
150
The carrying amount of other intangibles consists of customer relationships €59 million (2023: €63.0 million), trade
name €1.5 million (2023: €2.3 million), and other €1.6 million (2023: €1.3 million).
We perform an annual impairment test in the fourth quarter of each year or if events or changes in circumstances
indicate that the carrying amount of development costs exceeds its recoverable amount. A discounted future cash
flow approach is used which makes use of our estimates of future revenues, driven by assumed market growth and
estimated costs as well as appropriate discount rates. For the impairment test, reference is made to Note 5.
Impairment charges on capitalized development costs are included in operating expenses under research and
development. Impairment of capitalized development expenses primarily related to development of new hardware
for which customer demand has shifted out in time, new process technologies that were not successful, and
purchased technology which became obsolete. The impairment charges for 2024 related to customer-specific
projects.
Capitalized development costs are amortized over their estimated useful lives of five years. Amortization starts
when the developed asset is ready for its intended use. For the company, this occurs when the application is
transferred to high-volume manufacturing.
Capitalized development costs are derecognition upon disposal; or when no future economic benefits are
anticipated from its use or disposal. The derecognition in 2024 pertain to fully amortized projects that were either
previously impaired or succeeded by subsequent development projects, thus no future economic benefits are
expected from these projects.
The company estimated a useful life of purchased technology of 15 years; other intangibles assets are amortized
over their estimated useful lives of, respectively, four years (trade name) and 17 years (customer relationships).
The amortization of development costs and purchased technology is included in R&D expenses in the P&L (2024:
EUR 80m). The amortization of the trade name and customer relationships is included in SG&A.
Actual / estimated amortization expenses relating to other intangible assets are as follows:
Development costs
Software
Purchased technology
Other intangibles
Total
2024 (actual)
65,901
-
65,901
3,497
14,065
4,868
88,331
Estimated
Amortization started ("in use")
Future amortization start date
("in development")
Total expected amortization
2025
82,716
17,770
100,486
10,945
14,131
5,255
130,817
2026
73,643
38,824
112,467
16,896
14,131
5,046
148,540
2027
65,394
44,504
109,898
15,528
14,131
4,215
143,772
2028
52,273
44,943
97,216
6,997
14,131
4,183
122,527
2029
24,834
44,943
69,777
4
14,131
4,098
88,010
Years thereafter
-
33,769
33,769
-
108,819
39,336
181,924
Estimated amortization
298,860
224,753
523,613
50,370
179,474
62,133
815,590
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Strategy and performance
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Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
151
Note 7. Investments in associates
The location included below is the principal place of business of the specified associates. The principal place of
business and country for ASMPT deviates from the place of incorporation (Cayman Islands).
% Ownership December 31,
2023
2024
Name
Location
Associates
Levitech BV
Almere, the Netherlands
26.64 %
26.64 %
SiC systems AB
Lunds Kommun, Sweden
50.00 %
50.00 %
ASMPT Ltd
Singapore
24.85 %
24.73 %
Levitech BV is valued at nil (2023: nil).
The changes in the investment in associates are as follows:
ASMPT
Other
Total
Net equity share
Other (in)tangible
assets
Goodwill
Total ASMPT (before
impairment)
Impairment, net
Total ASMPT (after
impairment)
Net equity share
Balance January 1, 2023
475,725
7,233
418,272
901,230
(215,389)
685,841
500
686,341
Reversal of impairments of investments in associates, net
-
-
-
-
215,389
215,389
-
215,389
Share in net earnings of investments in associates
21,206
-
-
21,206
-
21,206
-
21,206
Other comprehensive income of investments in associates
(618)
-
-
(618)
-
(618)
-
(618)
Amortization recognized intangible assets
-
(3,666)
-
(3,666)
-
(3,666)
-
(3,666)
Dividends
(30,753)
-
-
(30,753)
-
(30,753)
-
(30,753)
Dilution ASMPT share to 24.85%
2,607
-
-
2,607
-
2,607
-
2,607
Foreign currency translation effect
(13,158)
(141)
(15,270)
(28,569)
-
(28,569)
-
(28,569)
Balance December 31, 2023
455,009
3,426
403,002
861,437
-
861,437
500
861,937
Reversal of impairments of investments in associates, net
-
-
-
-
-
-
-
-
Share in net earnings of investments in associates
10,021
-
10,021
-
10,021
-
10,021
Other comprehensive income of investments in associates
(1,276)
-
(1,276)
-
(1,276)
-
(1,276)
Amortization recognized intangible assets
-
(378)
(378)
-
(378)
-
(378)
Dividends
(13,668)
-
(13,668)
-
(13,668)
-
(13,668)
Dilution ASMPT share to 24.73%
3,500
-
3,500
-
3,500
-
3,500
Foreign currency translation effect
15,162
221
28,106
43,489
-
43,489
-
43,489
Balance December 31, 2024
468,748
3,269
431,108
903,125
-
903,125
500
903,625
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Financial statements
Appendix
ASM Annual Report 2024
152
The company's interests in Levitech and SIC systems AB are, individually and in aggregate, immaterial to the
consolidated financial statements, therefore no further disclosures included.
On March 15, 2013, the company divested a controlling stake in its subsidiary ASMPT Ltd (ASMPT). After the initial
accounting of the sale transaction and related gains, future income from ASMPT was adjusted for the fair value
adjustments arising from the basis differences as if a business combination had occurred under IFRS 3R, Business
Combinations, i.e. a purchase price allocation (PPA).
The purchase of the associate has been recognized at fair value, being the value of the ASMPT shares on the day of
closing of the purchase transaction. The composition of this fair value was determined through a PPA. The PPA
resulted in the recognition of intangible assets for customer relationship, technology, trade name, product names,
and goodwill. For inventories and property, plant & equipment, a fair value adjustment was recognized.
The ASMPT investment is accounted for under the equity method on a go-forward basis. Equity method investments
are tested for prolonged impairment. An investment is considered impaired if the higher of fair value of the
investment or value in use is less than its carrying value. If the higher of fair value of an investment or value in use is
less than its carrying value at the balance sheet date, the company determines whether the impairment is temporary
or prolonged. Management concluded that there is no objective evidence for impairment as of 31 December 2024
(2023 contains a €215 million impairment reversal as a result of an increase in the recoverable amount).
The amount per share recognized as per December 31, 2024, under equity accounting amounts to HK$70.74,
whereas the level 1 fair value per share (being the market price of a share on the Hong Kong Stock Exchange) was
HK$74.9 as per December 31, 2024.
In December 2024, 1,953,200 common shares of ASMPT were issued, for cash at par value of HK$0.10 per share,
pursuant to the Employee Share Incentive Scheme of ASMPT. ASM's ownership in ASMPT has diluted to 24.73% as
of December 31, 2024 due to the shares issued under the plan in 2024.
Per December 31, 2024, the book value of our equity method investment in ASMPT was €903.1 million. The historical
cost basis of our 24.73% share of net assets on the books of ASMPT under IFRS was €468.7 million as of December
31, 2024, resulting in a basis difference of €434.4 million. €3.3 million of this basis difference has been allocated to
intangible assets. The remaining amount was allocated to equity method goodwill. Each individual, identifiable asset
will periodically be reviewed for any indicators of potential impairment. We amortize the basis differences allocated
to the assets on a straight-line basis, and include the impact within the results of our equity method investments.
Amortization and depreciation are adjusted for related deferred tax impacts. Included in net income attributable to
ASM for 2024 was an after-tax expense of €0.4 million, representing the depreciation and amortization of the basis
differences.
Summarized 100% earnings information for ASMPT equity method investment excluding basis adjustments (foreign
currency exchange rate average 2024: 1 HK$: €0.11782 for December 31, 2023: 1 HK$: €0.11812).
(HK$ million)
2023
2024
Revenues
14,697
13,229
Income before income tax
1,036
502
Net earnings from continuing operations
712
342
Other comprehensive income
116
(575)
Total comprehensive income
828
(233)
Summarized 100% statement of financial position information for ASMPT equity method investment excluding basis
adjustments (foreign currency exchange rate per December 31, 2024, was 1 HK$: €0.12394 for December 31, 2023:
1 HK$: €0.11586).
December 31,
(HK$ million)
2023
2024
Current assets
15,241
15,095
Non-current assets
8,722
8,579
Current liabilities
6,013
4,072
Non-current liabilities
2,146
4,310
Total equity
15,804
15,292
Shareholder's equity of ASMPT per December 31, 2024, translated into euros at a rate of 0.12394 was €1,895 million
(our 24.73% share: €469 million).
The ASMPT Board is responsible for ongoing monitoring of the performance of ASMPT. The actual results of ASMPT
are discussed with the ASMPT Audit Committee, which includes the representative of ASM. The ASM representative
reports to the ASM Management Board and the Audit Committee of ASM on a quarterly basis.
Our share of income taxes incurred directly by the associates is reported in income of investments in associates and
as such is not included in income taxes in our consolidated financial statements.
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Financial statements
Appendix
ASM Annual Report 2024
153
Note 8. Inventories
Inventories consist of the following:
December 31,
2023
2024
Components and raw materials
409,478
425,996
Work in progress
91,633
131,340
Finished goods
65,363
96,773
Total inventories, gross
566,474
654,109
Allowance for obsolescence
(40,784)
(87,102)
Total inventories, net
525,690
567,007
The changes in the allowance for obsolescence are as follows:
December 31,
2023
2024
Balance at beginning of year
(16,386)
(40,784)
Additions
(36,536)
(62,262)
Reversals
10,042
14,642
Utilization of the provision
1,552
2,510
Foreign currency translation effect
544
(1,208)
Balance at end of year
(40,784)
(87,102)
On December 31, 2024, our allowance for inventory obsolescence amounted to €87.1 million, which is 13.3% of total
gross inventory. The major part of the allowance is related to components and raw materials. The additions for 2024
and 2023 mainly relate to inventory items which ceased to be used due to technological developments and design
changes resulting in obsolescence of certain parts. Allowance for obsolescence increased due to prior years
measures to increase stock levels to minimize the impact of supply chain constraints, in conjunction with softening
market conditions.
The cost of inventories recognized as costs and included in cost of sales amounted to €1,082.0 million (2023:
€1,023.0 million).
Note 9. Accounts receivable
A significant percentage of our accounts receivable is derived from sales to a limited number of large multinational
semiconductor device manufacturers located throughout the world. In order to monitor potential expected credit
losses, we perform ongoing credit evaluations of our customers’ financial condition.
The carrying amount of accounts receivable is as follows:
December 31,
2023
2024
Current
427,111
681,904
Overdue <30 days
30,328
47,648
Overdue 31-60 days
5,710
18,242
Overdue 61-120 days
9,752
19,309
Overdue >120 days
14,826
21,856
Total
487,727
788,959
An allowance for doubtful accounts receivable is maintained for potential expected credit losses based upon
management’s assessment of the expected collectability of all accounts receivable. The allowance for doubtful
accounts is reviewed periodically to assess the adequacy of the allowance. In making this assessment, management
takes into consideration any circumstances of which we are aware regarding a customer’s inability to meet its
financial obligations, and our judgments as to potential prevailing economic conditions in the industry and their
potential impact on the company’s customers.
The changes in the allowance for doubtful accounts receivable are as follows:
December 31,
2023
2024
Balance at beginning of year
(642)
(1,454)
Charged to selling, general and administrative expenses
(845)
(384)
Utilization of the provision
37
886
Foreign currency translation effect
(4)
(5)
Balance at end of year
(1,454)
(957)
Accounts receivable are impaired and provided for on an individual basis. As of December 31, 2024, accounts
receivable of €107.1 million were past due but not impaired. These balances are still considered to be recoverable
Introduction
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Financial statements
Appendix
ASM Annual Report 2024
154
because they relate to customers for whom there is neither recent history of default nor expectation that this will
incur. Refer to Note 18 for further information on credit risk.
Note 10. Other current assets
Other current assets consist of the following:
December 31,
2023
2024
Prepayments
39,010
25,888
VAT receivable
23,154
29,647
Others
6,681
14,742
Total
68,845
70,277
Note 11. Cash and cash equivalents
Cash and cash equivalents at December 31, 2024, include bank deposits and investments in money market funds
that invest in marketable debt obligations and securities of governments, corporates and financial institutions. The
amount invested in deposits and money market funds at the end of 2024 was €472 million (2023: €191 million) and
interest‑bearing bank accounts of €455 million (2023: €446 million). Our cash and cash equivalents are
predominantly denominated in US dollars, and partly in euros, Singapore dollars, Korean won, and Japanese yen.
Bank guarantees are in place for an amount of €1.1 million at December 31, 2024 (€1.8 million as per December 31,
2023). These guarantees mainly relate to lease and tax payments.
Cash and cash equivalents have insignificant interest-rate risk and remaining maturities of maximum three months or
can be converted into cash without no more than 30 days' notice. Except for an amount of €0.5 million (2023: €0.5
million), there are no restrictions on usage of cash and cash equivalents. The carrying amount of these financial
assets approximates their fair value. The company has not recognized a provision for expected credit loss for cash
and cash equivalents due to the insignificance of the amount.
Note 12. Equity
Our Management Board has the power to issue common shares and (financing) preferred shares insofar as the
Management Board has been authorized to do so by the Annual General Meeting of Shareholders (AGM). The
Management Board requires the approval of the Supervisory Board for such an issue. The authorization by the AGM
can only be granted for a certain period. In the case that the AGM has not authorized the Management Board to
issue shares, the AGM shall have the power to issue shares.
Capital management
The Board’s policy is to maintain a strong capital base in order to retain investor, creditor and market confidence and
to sustain future development of the business. Management strives to maintain a cash position of at least €600
million to reflect a balance between investing in growth of the business, its policy to pay a sustainable dividend and
returning excess cash to shareholders. With the publication of the Q4 2024 results on February 25, 2025, we
announced a new €150 million share buyback program. The Company’s objective is to achieve a sound return on
shareholders’ equity. The Company is monitoring its capital ratio of net debt to total shareholders’ equity which
should not exceed 1.5. There were no changes to the Board’s approach to capital management during the year.
Common shares, preferred and financing preferred shares
Following the amendment of the articles of association on August 3, 2018, the authorized capital of the company
amounts to 82,500,000 common shares of €0.04 par value, 88,500 preferred shares of €40 par value and 6,000
financing preferred shares of €40 par value.
As per December 31, 2024, 49,328,548 common shares with a nominal value of €0.04 each were issued and fully
paid up, of which 230,731 common shares are held by us in treasury. All shares have one vote per €0.04 par value.
Treasury shares held by the company cannot be voted on. Of our 49,097,817 outstanding common shares at
December 31, 2024, 47,132,271 are registered with our transfer agent in the Netherlands, ABN AMRO Bank N.V., and
1,965,546 are registered with our transfer agent in the United States, Citibank, NA, New York.
Financing preferred shares are designed to allow ASM to finance equity with an instrument paying a preferred
dividend, linked to Euribor loans and government loans, without the dilutive effects of issuing additional common
shares.
Preferred and financing preferred shares are issued in registered form only and are subject to transfer restrictions.
Essentially, a preferred or financing preferred shareholder must obtain the approval of the company's Supervisory
Board to transfer shares. If approval is denied, the Supervisory Board will provide a list of acceptable prospective
buyers who are willing to purchase the shares at a cash price to be fixed by consent of the Supervisory Board and
seller within two months after the approval is denied. If the transfer is approved, the shareholder must complete the
transfer within three months, at which time the approval expires.
Preferred shares are entitled to a cumulative preferred dividend based on the amount paid up on such shares.
Financing preferred shares are entitled to a cumulative dividend based on the par value and share premium paid on
such shares.
As per December 31, 2024, no preferred shares and no financing preferred shares are issued.
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ASM Annual Report 2024
155
Purchases of common shares by the issuer and affiliated purchasers
On May 13, 2024, the AGM authorized the company, for an 18-month period, to be calculated from the date of the
AGM, to repurchase its own shares up to 10% of the issued capital, at a price at least equal to the shares’ nominal
value and at most a price equal to 110% of the shares' average closing price according to the listing on the Euronext
Amsterdam stock exchange during the five trading days preceding the purchase date.
On February 22, 2022, ASM announced a share buyback program to purchase up to an amount of €100 million of its
own shares within the 2022/2023 time frame. This program started on April 27, 2023, and was completed on
September 19, 2023.
Period
Total number of shares
purchased
Average price paid per share (€)
Cumulative number of shares
purchased
April, 2023
8,548
€324.79
8,548
May, 2023
60,288
€341.17
68,836
June, 2023
69,817
€383.07
138,653
July, 2023
23,575
€376.75
162,228
August, 2023
5,727
€421.79
167,955
September, 2023
96,548
€399.93
264,503
Total
264,503
€378.07
On February 27, 2024, ASM announced a share buyback program to purchase up to an amount of €150 million of its
own shares within the 2024 time frame. This program started on May 15, 2024, and was completed on July 25, 2024.
Period
Total number of shares
purchased
Average price paid per share (€)
Cumulative number of shares
purchased
May, 2024
72,961
€653.45
72,961
June, 2024
17,360
€654.77
90,321
July, 2024
138,068
€658.78
228,389
Total
228,389
€656.77
The share buyback programs were executed by intermediaries through on-exchange purchases or through off-
exchange trades. ASM updated the markets on the progress of the share buyback programs on a weekly basis.
The following table shows the change in number of treasury shares and outstanding shares:
Number of shares
Treasury shares
Outstanding
shares
Balance at beginning of year
226,802
49,201,746
Purchase common shares
228,389
(228,389)
Vesting restricted shares out of treasury shares
(124,460)
124,460
Cancellation treasury shares
(100,000)
-
Balance at end of year
230,731
49,097,817
ASM intends to use part of the shares for commitments under the employee share-based compensation schemes
and the performance shares program for the Management Board.
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Financial statements
Appendix
ASM Annual Report 2024
156
Treasury shares
On December 31, 2024, we had 49,097,817 outstanding common shares excluding 230,731 treasury shares. This
compared to 49,201,746 outstanding common shares and 226,802 treasury shares at December 31, 2023. The
change in the number of treasury shares in 2024 was the result of 228,389 repurchased shares, cancellation of
100,000 treasury shares and 124,460 treasury shares that were used as part of share-based payments.
2023
2024
As per January 1:
Issued shares
49,348,548
49,428,548
Treasury shares
22,229
226,802
Outstanding shares
49,326,319
49,201,746
Changes during the year:
Share buybacks
264,503
228,389
Treasury shares used for share-based performance programs
121,681
124,460
Treasury shares used for exercise stock options
18,249
-
Issue of common shares used for share-based performance programs
80,000
-
Cancellation of treasury shares
—
(100,000)
As per December 31:
Issued shares
49,428,548
49,328,548
Treasury shares
226,802
230,731
Outstanding shares
49,201,746
49,097,817
Retained earnings
Distributions to common shareholders are limited to the extent the total amount of shareholders’ equity exceeds the
amounts of nominal paid-in share capital (exclusive any share premium) and any reserves to be formed pursuant to
law or the company’s Articles of Association. The amounts are derived from the company financial statements of
ASM.
ASM aims to pay a sustainable annual dividend. The Supervisory Board, upon proposal of the Management Board,
will annually assess the amount of dividend that will be proposed to the AGM. The decision that a dividend be
proposed to the AGM will be subject to the availability of distributable profits as well as retained earnings and may
be affected by our potential future funding requirements. Accordingly, dividend payments may fluctuate and could
decline or be omitted in any year.
Over 2023, we paid in total a dividend of €2.75 per common share as regular dividend, and was paid after the 2024
AGM in May 2024. We will propose to the forthcoming 2025 AGM to declare a regular dividend of €3.00 per share
over 2024.
Results on dilution of investments in associates are accounted for directly in equity. For 2024 and 2023, these
dilution results were €3,500 and €2,607, respectively.
Other reserves
The changes in the amounts of other reserves are as follows:
Proportionate share in
other comprehensive
income of investments
in associates
Remeasurem
ent on net
defined
benefit
Foreign
currency
translation
reserve
Total other
reserves
Balance January 1, 2023
2,279
1,057
191,546
194,882
Proportionate share in other comprehensive income of
investments in associates
(618)
-
-
(618)
Remeasurement on net defined benefit
-
479
-
479
Foreign currency translation effect on foreign operations
-
-
(90,908)
(90,908)
Balance December 31, 2023
1,661
1,536
100,638
103,835
Proportionate share in other comprehensive income of
investments in associates
(1,276)
-
-
(1,276)
Remeasurement on net defined benefit
-
725
-
725
Foreign currency translation effect on foreign operations
-
-
69,957
69,957
Balance December 31, 2024
385
2,261
170,595
173,241
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Financial statements
Appendix
ASM Annual Report 2024
157
Note 13. Employee benefits
Pension plans
The company has retirement plans covering substantially all employees. The principal plans are defined contribution
plans, except for the plans of the company’s operations in the Netherlands and Japan.
Multi-employer plan
There are 190 eligible employees in the Netherlands. These employees participate in a multi-employer union plan
(pension fund Metalektro PME) determined in accordance with the collective bargaining agreements effective for the
industry in which we operate. This multi-employer union plan, accounted for as a defined contribution plan, covers
approximately 1,533 companies and approximately 183,000 contributing members. Our contribution to the multi-
employer union plan was less than 5% of the total contribution to the plan. The plan monitors its risks on a global
basis, not by participating company or employee, and is subject to regulation by Dutch governmental authorities.
By law (the Dutch Pension Act), a multi-employer union plan must be monitored against specific criteria, including the
coverage ratio of the plan’s assets to its obligations. As of July 1, 2023, new pension legislation has been enacted,
however the new legislation will become effective as of January 2027, no impact identified on the 2023 and 2024
financial statements. The current effective legislation results in, amongst others, an increase of legally required
coverage levels. The coverage percentage is calculated by dividing the funds capital by the total sum of pension
liabilities and is based on actual market interest rates. The coverage ratio as per December 31, 2024, of 113.1%
(December 31, 2023: 109.4%) is calculated giving consideration to the pension legislation. We have no obligation to
pay off any deficits the pension fund may incur, nor do we have any claim to any potential surpluses.
Every company participating in the PME contributes a premium calculated as a percentage of its total pensionable
salaries, with each company subject to the same contribution rate. The premium can fluctuate yearly based on the
coverage ratio of the multi-employer union plan. For 2024, the contribution percentage was 27.98%. The pension
rights of each employee are based upon the employee’s average salary during employment.
Our net periodic pension cost for this multi-employer union plan for any period is the amount of the required
employer contribution for that period minus the employee contribution.
Defined benefit plan
The company’s employees in Japan participate in a defined benefit plan. The company makes contributions to
defined benefit plans in Japan that provide pension benefits for employees upon retirement. These are average-pay
plans, based on the employees' years of service and compensation near retirement.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were
carried out on December 31, 2024. The present value of the defined benefit obligation and the related current
service cost and past service cost were measured using the projected unit credit method. Significant actuarial
assumptions for the determination of the defined obligation are discount rate, future general salary increases, and
future pension increases.
The net liability (asset) of the plan developed as follows:
December 31,
2023
2024
Defined benefit obligations
8,615
8,311
Fair value of plan assets
11,534
12,127
Net liability (asset) for defined benefit plans
(2,919)
(3,816)
The company does not provide for any significant post-retirement benefits other than pensions.
Deferred compensation plan
Our non-qualified deferred compensation plan enables more senior US employees to postpone a percentage of their
salary and/or bonuses. At its sole discretion, we may credit participant accounts with company contributions.
Participants can allocate their deferrals among the plan's numerous investment options. At least three years after
deferral, participants choose to receive their funds in subsequent periods following the earlier of their employment
termination or their withdrawal election.
Expenses were close to nil relating to this plan in 2024 and 2023. As of December 31, 2024, our liability under
deferred compensation plans was €17.2 million (2023: €8.1 million). The related compensation plan assets are €15.9
million (2023: €7.4 million).
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
158
Long-term incentive plan for Management Board and employee
The company has adopted multiple share plans, including a restricted share plan and a performance share plan. It
has entered into share agreements with the Management Board and included eligible employees to participate in the
restricted share plan. Under the restricted share plan, employees receive per the vesting date a specific number of
shares of the company’s common stock. In 2024, 64% of our global headcount was eligible to the restricted share
plan. Under the performance share plan, the Management Board and Executive Committee members receive per the
vesting date, and provided the performance criteria have been met, a specific number of shares of the company’s
common stock.
Authority to issue shares
By resolution of the Annual General Meeting of Shareholders (AGM) of May 14, 2024, the formal authority to issue
shares was allocated to the Management Board subject to the approval of the Supervisory Board. This authority is
valid for 18 months and needs to be refreshed by the 2025 AGM to allow the continued application of the long-term
incentive (LTI) plans beyond November 14, 2025. The company hasn't granted new options since its last grant date
per April 2017.
The ASM 2014 long-term incentive plan for employees (ELTI) is principally administered by the Management Board
and the ASM 2014 long-term incentive plan for members of the Management Board (MLTI) is principally administered
by the Supervisory Board. This complies with applicable corporate governance standards. However, the Supervisory
Board has no power to represent the company. For external purposes, the Management Board remains the
competent body under both LTI plans. The LTI plans envisage that the Supervisory Board, or in the case of the ELTI
the Management Board with the approval of the Supervisory Board, will determine the number of shares to be
granted to the Management Board members and to employees.
2014 long-term incentive plan
The current long-term incentive plan was adopted in 2014. In the plan to limit potential dilution, the amount of
outstanding (vested and non-vested) shares granted to the Management Board and to other employees will not
exceed 5% of the issued ordinary share capital of ASM. The new long-term incentive plan 2014 consists of two
sub‑plans: the ELTI and the MLTI.
Performance shares are primarily issued to Management Board and Executive Committee members and regularly
restricted shares are issued to employees once per annum on the date following the publication of the first-quarter
results of the relevant year. Possible grant to newly hired employees can be issued once a quarter, on the date
following the publication of the financial results of the relevant quarter. The number of shares outstanding under the
long-term incentive plans or under any other plan or arrangement in aggregate may never exceed 5% of ASM’s share
capital.
Performance and restricted shares outstanding
The following table is a summary of changes in performance shares and restricted shares outstanding under the
2014 long-term incentive plan.
Status
Number of
performance
shares
Number of
restricted shares
Fair value at grant
date (weighted
average)
Balance January 1, 2023
23,069
239,710
Shares granted, employees
Unconditional
-
120,200
€317.51
Shares granted, Management Board and ExCo
Conditional
18,017
-
€313.46
Shares granted, Management Board
Unconditional
-
-
€0.00
Shares vested
(8,087)
(113,594)
Shares forfeited
-
(9,879)
Balance December 31, 2023
32,999
236,437
Shares granted, employees
Unconditional
-
80,896
€579.25
Shares granted, employees
Conditional
4,461
-
€584.53
Shares granted, Management Board and ExCo
Conditional
9,001
-
€581.81
Shares granted, Management Board
Unconditional
2,358
-
€260.33
Shares vested
(16,384)
(108,076)
Shares forfeited
(644)
(20,038)
Balance December 31, 2024
31,791
189,219
In 2024, treasury shares were sold for the vesting of 124,460 restricted shares.
Share-based payments expenses
The grant date fair value of the restricted shares and the performance shares is expensed on a straight-line basis
over the vesting period, based on the company’s estimate of restricted shares, and performance shares that will
eventually vest. The impact of the true‑up of the estimates is recognized in the consolidated statement of profit or
loss in the period in which the revision is determined. We recorded compensation expenses of €48,557 for 2024
(2023: €37,308).
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Financial statements
Appendix
ASM Annual Report 2024
159
Note 14. Provision for warranty
The changes in the amount of provision for warranty are as follows:
December 31,
2023
2024
Balance January 1
34,219
22,716
Additions
36,360
41,536
Utilization
(29,238)
(25,305)
Releases of expired warranty
(17,352)
(6,298)
Foreign currency translation effect
(1,273)
752
Balance December 31
22,716
33,401
Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end
of the reporting period. Costs of warranty include the cost of labor and materials to repair a product during the
warranty period. The main term of the warranty period is one year. The company accrues for the estimated cost of
the warranty on its products shipped in the provision for warranty, upon recognition of the sale of the product. The
costs are estimated based on actual historical expenses incurred and on estimated future expenses related to
current revenue, and are updated periodically. Actual warranty costs are charged against the provision for warranty.
The assumptions made in relation to the current period are consistent with those in the prior year. Factors that could
impact the estimated claim information include the success of the group’s productivity and quality initiatives, as well
as parts and labor costs. The main part of the claims is expected to be settled in the next financial year.
Note 15. Accrued expenses and other payables
Accrued expenses and other payables consist of the following:
December 31,
2023
2024
Personnel-related items
132,813
164,691
Current lease liabilities
10,874
11,672
Supplier-related items
39,996
32,522
Other
32,530
26,415
Total accrued expenses and other payables
216,213
235,300
Personnel-related items comprise accrued management bonuses, accrued vacation days, accrued wage tax, social
securities, and pension premiums. Other includes accruals for VAT, other taxes, and invoices to be received for
services.
Note 16. Contingent consideration payable
According to the SPA (Sale and Purchase Agreement of LPE S.p.A., hereafter LPE ) dated 15 July 2022, ASM agreed
with the seller that in the event certain predetermined sales targets (including specific targets for certain markets)
are achieved by LPE over the period 2023-2024, an additional consideration of up to €100 million ('LPE earn out')
may be payable in cash in Q2 2025.
The company determined that the combined revenues over the performance period exceed the upper threshold of
the predetermined sales targets and therefore accounted for 100% of the LPE earn-out. The payout will remain
conditional until approval of the 2024 statutory annual report of LPE, which is expected to occur in the 2nd quarter
of 2025.
The fair value of the contingent consideration of €97 million represents the discounted value of the expected related
€100 million cash payment as of 31 December, 2024 (2023: €88 million).
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Financial statements
Appendix
ASM Annual Report 2024
160
Note 17. Credit facility
As per December 31, 2024, ASM was debt-free. ASM may borrow under separate short-term lines of credit with
banks under an unsecured €150 million standby revolving credit facility (RCF)with a consortium of banks.
The amount outstanding as at December 31, 2024 was nil, so the undrawn portion totaled €150 million. The undrawn
portion represents the company’s standby revolving credit facility of €150 million with a consortium of banks. The
initial five-year tenor 2022 facility included a two-year extension option, which has been exercised, bringing the
maturity date to 2029. The facility amount is €150 million with an accordion option to increase the facility by an
amount of €100 million.
The credit facility of €150 million includes one financial covenant:
• Consolidated total net debt/total shareholders’ equity ratio.
This financial covenant is measured twice each year: on June 30 and December 31.
The net debt/total shareholders’ equity ratio should not exceed 1.5. For the year ended December 31, 2024, the
company has no net debt, cash and cash equivalents amount to €927 million, and total equity equals the amount of
consolidated tangible net worth.
The company is in compliance with these financial covenants as of December 31, 2024.
The RCF agreement stipulates that in the event of a change of control of ASM, the amounts outstanding under the
arrangement may become immediately due.
Next to the RCF ASM has an unsecured €15 million Uncommitted Overdraft Facility Agreement with one of its cash
management banks. The amount outstanding on December 31, 2024, was nil, so the undrawn portion totaled €15
million.
Note 18. Financial instruments and financial risk management
Financial instruments
Financial instruments include:
Year ended December 31, 2023
Financial assets at
fair value through
profit or loss 1
Financial assets as
amortized costs
Other financial
liabilities
Total
Financial assets:
Cash and cash equivalents
191,232
446,032
-
637,264
Accounts receivable
-
487,727
-
487,727
Financial liabilities:
Accrued expenses and other liabilities
-
-
238,897
238,897
Contingent consideration payable
-
-
88,304
88,304
Accounts payable
-
-
177,686
177,686
Year ended December 31, 2024
Financial assets at
fair value through
profit or loss 1
Financial assets as
amortized costs
Other financial
liabilities
Total
Financial assets:
Cash and cash equivalents
471,847
454,654
-
926,501
Accounts receivable
-
788,959
-
788,959
Financial liabilities:
Accrued expenses and other liabilities
-
-
258,889
258,889
Contingent consideration payable
-
-
97,002
97,002
Accounts payable
-
-
282,554
282,554
1 Consists of investments in money market funds that invest in marketable debt obligations and securities of
governments, corporates and financial institutions and dual currency deposits ( less then 3 months). Fair value
measurement of the money market funds is based on Level 1 (fair value hierarchy), remainder based on Level 2.
The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable are a reasonable
approximation of their fair values.
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Financial statements
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161
Gains or (losses) related to financial instruments are as follows:
2023
2024
Interest income
14,826
21,658
Interest expense
(3,945)
(1,884)
Change in fair value of contingent consideration
(9,655)
(8,698)
Result from foreign currency exchange
(21,375)
45,048
Addition to allowance for doubtful accounts receivable
(845)
(384)
Financial risk factors
ASM is exposed to a number of financial risks such as market risk (including foreign currency risk), credit risk,
liquidity risk, and capital risk. Our overall risk management program focuses on the unpredictability of financial
markets and seeks to minimize potentially adverse effects on our financial performance. Our financing policy is
based on the following elements:
• Liquidity: Maintain a minimum amount of €600 million in cash and cash equivalents, which allows us to continue
investing in R&D and in the growth of our company;
• Capital structure: Maintain a strong capital base so as to maintain investor-, creditor-, and market confidence, and
to sustain future development of the business;
• Cash return: We intend to return cash to our shareholders on a regular basis in the form of dividend payments and,
subject to our actual and anticipated liquidity requirements and other relevant factors, share buybacks.
We might use derivative financial instruments to hedge certain risk exposures, we won't enter into such instruments
for trading or speculative purposes. We use market information to determine the fair value of our derivative financial
instruments
Market risk
Market risk includes changes in market prices – e.g. foreign currencies and interest rates, which will affect the
group’s income or the value of its holdings of financial instruments. The objective of market-risk management is to
manage and control market risk exposures within acceptable parameters, while optimizing the return.
Foreign currency risk
ASM and its subsidiaries conduct business in a number of foreign countries, with certain transactions denominated in
currencies other than the functional currency of the company (euro) or one of its subsidiaries conducting the
business. The purpose of the company's foreign currency management is to manage the effect of exchange-rate
fluctuations on income, expenses, cash flows, and assets and liabilities denominated in selected foreign currencies,
in particular denominated in US dollars.
We may use forward exchange contracts to hedge our foreign exchange risk of anticipated sales or purchase
transactions in the normal course of business which occur within the next twelve months, for which we have a firm
commitment from a customer or to a supplier. The terms of these contracts are consistent with the timing of the
transactions being hedged. There is no hedge accounting applied on the hedges therefore change in fair value (gain
or loss) on the hedges will be recognized in profit or loss.
We do not use forward exchange contracts for trading or speculative purposes.
Receivables and payables denominated in foreign currencies are recorded at the exchange rate at the balance sheet
date, and gains and losses as a result of changes in exchange rates are recorded in earnings under foreign currency
exchange gains (losses) in the consolidated statement of profit or loss.
Financial assets and financial liabilities are recognized on the company's consolidated statement of financial position
when the company becomes a party to the contractual provisions of the instrument.
To the extent that exchange rate fluctuations impact the value of the company’s investments in its foreign
subsidiaries, they are not hedged. The cumulative effect of these fluctuations is separately reported in consolidated
equity. Reference is made to Note 12.
Per December 31, 2024, there were no forward exchange contracts outstanding (none as per December 31, 2023).
The foreign currency exchange results in 2024 pertains to translation gain of €45.0 million, compared to translation
loss of €21.4 million in 2023. A substantial part of ASM's cash position is denominated in US dollar, which is the key
driver of the exchange gain in 2024 and the loss in 2023.
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Financial statements
Appendix
ASM Annual Report 2024
162
The following table analyzes the company’s exposure to currency risk in our major currencies.
December 31,
2023
2024
(thousand)
USD
JPY
KRW
SGD
USD
JPY
KRW
SGD
Accounts receivable
430,219
1,896,633
9,828,588
510
715,072
2,032,556
9,863,787
496
Cash and cash equivalents
557,922
2,538,412
20,238,173
30,384
538,118
146,687
12,805,931
28,853
Accounts payable
(77,837)
(3,041,465)
(28,425,737)
(36,840)
(182,843)
(3,148,769)
(40,305,139)
(47,070)
Total
910,304
1,393,580
1,641,024
(5,946)
1,070,347
(969,526)
(17,635,421)
(17,721)
The following table analyzes the company’s sensitivity to a hypothetical 10% strengthening and 10% weakening of
the US dollar, Singapore dollar, Korean won and Japanese yen against the euro as of December 31, 2024, and
December 31, 2023. This analysis includes foreign currency-denominated monetary items and adjusts their
translation at year-end for a 10% increase and 10% decrease against the euro.
Impact on financial instruments
2023
2024
10% increase of US dollar versus euro
82,381
103,027
10% decrease of US dollar versus euro
(82,381)
(103,027)
10% increase of Singapore dollar versus euro
(408)
(1,251)
10% decrease of Singapore dollar versus euro
408
1,251
10% increase of Korean won versus euro
115
(1,146)
10% decrease of Korean won versus euro
(115)
1,146
10% increase of Japanese yen versus euro
892
(594)
10% decrease of Japanese yen versus euro
(892)
594
A hypothetical 10% strengthening or 10% weakening of any other currency against the euro as of December 31,
2024, and December 31, 2023, could have a material impact on net earnings for certain currencies.
Interest risk
We are exposed to interest rate risk through our cash deposits. The company does not enter into financial instrument
transactions for trading or speculative purposes, or to manage interest-rate exposure. As per December 31, 2024,
the company had no debt and was not exposed to interest rate risk on borrowings.
Credit risk
Financial instruments that potentially subject the company to concentrations of credit risk consist primarily of cash
and cash equivalents, accounts receivable, and derivative instruments. These instruments contain a risk of
counterparties failing to discharge their obligations. We monitor credit risk and manage credit risk exposure by type
of financial instrument by assessing the creditworthiness of counterparties. We do not anticipate non‑performance
by counterparties, given their high creditworthiness.
Our customers are semiconductor device manufacturers located throughout the world. We perform ongoing credit
evaluations of our customers' financial condition. We take additional measures to mitigate credit risk when
considered appropriate by means of down payments or letters of credit. We generally do not require collateral or
other security to support financial instruments with credit risk.
Concentrations of credit risk (whether on- or off-balance sheet) that arise from financial instruments exist for groups
of customers or counterparties when they have similar economic characteristics that would cause their ability to
meet contractual obligations to be similarly affected by changes in economic or other conditions.
We derive a significant percentage of our revenue from a small number of large customers. The 10 largest customers
accounted for approximately 69.7% of revenue in 2024 (2023: 64.9%). The five largest customers accounted for
approximately 50.8% of revenue in 2024 (2023: 48.7%). In 2024, we had 3 customers (2023: two customers) who
contributed more than 10% of total revenue. Revenue to these large customers may also fluctuate significantly from
time to time, depending on the timing and level of purchases by these customers. Significant orders from such
customers may expose the company to a concentration of credit risk, and difficulties in collecting amounts due,
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Financial statements
Appendix
ASM Annual Report 2024
163
which could harm the company’s financial results. However, given the creditworthiness of our customers and
historical experience, we have not accounted for an expected credit loss over the outstanding balances in general.
Refer to Note 9 for further information.
We invest our cash and cash equivalents in short-term deposits, money-market funds, and derivative instruments
with high-rated financial institutions. We only enter into transactions with a limited number of major financial
institutions that have high investment grade credit ratings (e.g., S&P), and we closely monitor the creditworthiness of
our counterparties. Concentration risk is mitigated by not limiting the exposure to a single counterparty.
The maximum credit exposure is equal to the carrying values of cash and cash equivalents and accounts receivable.
Liquidity risk
Our policy is to maintain a strong capital base so as to maintain investor-, creditor-, and market confidence, and to
sustain future development of the business.
Our liquidity needs are affected by many factors, some of which are based on the normal ongoing operations of the
business, and others that relate to the uncertainties of the global economy and the semiconductor industry. Although
our cash requirements fluctuate based on the timing and extent of these factors, we believe that cash generated
from operations, together with our principal sources of liquidity, are sufficient to satisfy our current requirements,
including our expected capital expenditures in 2025.
We intend to return cash to our shareholders on a regular basis in the form of dividend payments and, subject to our
actual and anticipated liquidity requirements and other relevant factors, share buybacks.
The following table summarizes the company’s contractual obligations:
Year ended December 31, 2023
Total
Less than
1 year
1-5
years
More than
5 years
Accounts payable
177,686
177,686
-
-
Accrued expenses and other payables
216,213
216,213
-
-
Non-current lease liabilities
22,684
-
19,839
2,845
Contingent consideration payable
100,000
-
100,000
-
Purchase obligations:
Purchase commitments to suppliers
665,657
579,941
85,716
-
Capital expenditure and other commitments
49,287
31,669
17,618
-
Total contractual obligations
1,231,527 1,005,509
223,173
2,845
Year ended December 31, 2024
Total
Less than
1 year
1-5
years
More than
5 years
Accounts payable
282,554
282,554
-
-
Accrued expenses and other payables
235,300
235,300
-
-
Non-current lease liabilities
25,018
-
21,360
3,658
Contingent consideration payable
100,000
100,000
-
-
Purchase obligations:
Purchase commitments to suppliers
616,688
523,636
93,052
-
Capital expenditure and other commitments
109,147
107,599
1,548
-
Total contractual obligations
1,368,707 1,249,089
115,960
3,658
Total short-term lines of credit amounted to €150 million at December 31, 2024. The amount outstanding at
December 31, 2024 was nil and the undrawn portion totaled €150 million. The standby revolving credit facility of
€150 million with a consortium of banks will be available through May 31, 2027.
For the majority of purchase commitments, the company has flexible delivery schedules depending on the market
conditions, which allows the company, to a certain extent, to delay delivery beyond originally planned delivery
schedules.
Capital risk
The Board’s policy is to maintain a strong capital base in order to retain investor, creditor and market confidence and
to sustain future development of the business.
Our objectives when managing our capital structure are to safeguard our ability to satisfy our capital providers by
maintaining a capital structure that ensures strong financial position. The capital structure is mainly altered by,
among other things, our financial results, adjusting the amount of dividends paid to shareholders, the amount of
share buybacks or capital repayment, and (if applicable) any changes in the level of debt. Our capital structure is
formally reviewed with the Supervisory Board each year in connection with our updated long-term financial plan and
relevant scenarios. The outcome of this year’s review confirmed to maintain our existing financing policy in relation to
our capital structure.
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Financial statements
Appendix
ASM Annual Report 2024
164
Note 19. Commitments and contingencies
Per December 31, 2024, the company entered into purchase commitments with suppliers in the amount of €523,636
(2023: €579,941) for purchases within the next 12 months and €93,052 (2023: €85,716) after 12 months.
Commitments for capital expenditures and other commitments per December 31, 2024 were €107,599 (2023:
€31,669) within the next 12 months and €1,548 (2023: €17,618) after 12 months.
Note 20. Litigation
ASM and its subsidiaries are, and may become, a party to various legal proceedings incidental to their business. As is
the case with other companies in similar industries, ASM faces exposure from actual or potential claims and legal
proceedings. Although the ultimate result of legal proceedings cannot be predicted and may have material effects,
and in many events cannot be reasonably estimated, it is the opinion of the company’s management that the
outcome of any claim which is currently pending, either individually or on a combined basis, will not have a material
effect on ASM's consolidated financial position, cash flows and result of operations.
Note 21. Segment disclosure
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Executive
Officer (CEO), who is the Chief Operating Decision Maker (CODM).
The accounting policies used to measure the net earnings and total assets in each segment are consistent with
those used in the consolidated financial statements. The measurement methods used to determine reported
segment earnings are consistently applied for all periods presented. There were no asymmetrical allocations to
segments.
Geographical information is summarized as follows:
Year ended December 31,
2023
2024
Revenue
Non-current
assets 1
Revenue
Non-current
assets 1
United States
555,079
505,677
628,477
346,561
Europe
302,746
639,628
169,247
1,119,841
Asia
1,776,506
395,756 2,135,000
317,962
Total
2,634,331
1,541,061 2,932,724 1,784,364
1 Other than financial instruments, deferred tax assets and post-employment benefit assets
We refer to Note 18. Financial instruments and financial risk management for information on the extent of reliance on
major customers.
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ASM Annual Report 2024
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Note 22. Revenue
Geographical information is summarized as follows:
Year ended December 31,
2023
2024
Revenue
Revenue
United States
555,079
628,477
Europe
302,746
169,247
Asia
1,776,506
2,135,000
Total
2,634,331
2,932,724
For geographical reporting, the revenue is attributed to the geographical location in which the customer's facilities
are located.
Revenue stream
The company generates revenue primarily from the sales of equipment and spares and services. The products and
services are described by nature in the summary of significant accounting policies, and are recognized within these
revenue streams as follows:
• Equipment revenue: This revenue stream captures the sale of equipment and installation services. Revenues from
royalties and licenses are included to the extent that these licenses relate to equipment; and
• Spares & Services revenue: The revenues included under this line relate to the sale of spares and support
services. Revenues from royalties and licenses are included to the extent that these licenses relate to spares.
Year ended December 31,
2023
2024
Equipment revenue
2,205,846
2,385,352
Spares & Services revenue
428,485
547,372
Total
2,634,331
2,932,724
Total revenue increased by 11%, driven mainly by increases in our ALD and Spares & Services business.
Contract balances
2023
2024
Contract assets (current)
59,392
57,745
Contract Liabilities
300,241
485,732
The current contract assets primarily relate to the company’s right to consideration for work completed and revenue
recognized but not billed at the reporting date. The contract asset is transferred to accounts receivables when the
rights become unconditional. This usually occurs when the company issues an invoice to the customer.
Contract liabilities relates to the advance consideration received from customers for which revenue is not yet
recognized because the performance obligation has not been satisfied yet. Deferral of revenues is based on the
transaction price allocated to the performance obligations and recognized upon fulfillment of each performance
obligation. An amount of €121 million included in the contract liabilities at December 31, 2023, has been recognized
in 2024.
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Financial statements
Appendix
ASM Annual Report 2024
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Note 23. Income taxes
Amounts recognized in profit or loss
The total income tax expense amounts to €182.2 million (2023: €114.4 million). The components of income tax
expense were as follows:
Year ended December 31,
2023
2024
Current:
Current tax expense
(101,079)
(156,687)
Pillar Two Global minimum tax
—
(18,835)
Prior year benefit
15,531
3,324
(85,548)
(172,198)
Deferred:
Origination and reversal of tax losses, tax credits and
temporary differences
(28,900)
(7,732)
Prior year expense
—
(2,238)
(28,900)
(9,970)
Reconciliation of effective tax rate
The provisions for income taxes as shown in the consolidated statements of profit or loss differ from the amounts
computed by applying the Dutch statutory income tax rate to earnings before taxes. A reconciliation of the
provisions for income taxes and the amounts that would be computed using the Dutch statutory income tax rate is
set forth as follows:
Year ended December 31,
2023
2024
Result before income taxes from continuing operations
866,521
100.0%
867,902
100.0%
Income tax provision based on Dutch statutory income tax rate
(223,562)
25.8 %
(223,919)
25.8 %
Non-deductible expenses
(12,584)
1.5 %
(6,342)
0.7 %
Foreign taxes at a rate other than the Dutch statutory rate
17,752
(2.0) %
24,967
(2.9) %
Tax incentives and non-taxable income 1
33,532
(3.9) %
35,873
(4.1) %
Prior year tax adjustments
15,531
(1.8) %
1,086
(0.1) %
Non-taxable income / impairment reversal on investments in
associates 2
58,054
(6.7) %
2,624
(0.3) %
Pillar Two Global Minimum Tax
—
— %
(18,835)
2.2 %
Other
(3,172)
0.4 %
2,378
(0.3) %
Tax income (expense)
(114,449)
13.2 %
(182,168)
21.0 %
1 Tax incentives primarily relate to Singapore
2 This item consists of impairment reversal in 2023 and income from investments in associates to which the Dutch participation exemption
applies.
The consolidated group effective tax rate for 2024 is higher compared to previous year mainly due to an incidental
non-taxable impairment reversal on ASMPT reported in 2023 and the impact of Pillar II Global Minimum Tax in 2024.
The adjusted effective tax rate, excluding the impairment reversal on, and net income of our investment in ASMPT,
for 2024 is 21.2% (2023: 18.1%).
The Dutch statutory tax rate is 25.8%. Taxation for other jurisdictions is calculated at the rates prevailing in the
relevant jurisdictions. During 2024, there was no significant change in the statutory tax rates of the relevant
jurisdictions. The company’s deferred tax assets and liabilities have been determined in accordance with these
statutory income tax rates.
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167
Movement in deferred tax balances
Net balance at
January 1, 2023
Consolidated
statement of profit
and loss
Other
Net balance at
December 31, 2023
Deferred tax assets at
December 31, 2023
Deferred tax liabilities
at December 31, 2023
Right-of-use assets & lease liabilities
262
68
(11)
319
319
—
Property plant and equipment
(2,203)
(1,079)
47
(3,235)
-
(3,235)
Other intangible assets
(147,663)
(35,004)
2,965
(179,702)
-
(179,702)
Evaluation tools
1,934
44
(66)
1,912
1,912
—
Employee benefits
(1,061)
5,750
(331)
4,358
4,358
—
Inventories
3,569
2,449
(58)
5,960
5,960
—
Provision for warranty
6,941
(2,321)
(198)
4,422
4,422
—
Accrued expenses
10,310
150
(428)
10,032
10,032
—
Tax losses carried forward
4,652
(782)
(143)
3,727
3,727
—
R&D tax credits
(363)
2,663
(61)
2,239
2,239
—
Set-off deferred taxes
—
—
—
—
(32,790)
32,790
Total deferred tax
(123,622)
(28,062)
1,716
(149,968)
179
(150,147)
Net balance at
January 1, 2024
Consolidated
statement of profit
and loss
Other
Net balance at
December 31, 2024
Deferred tax assets at
December 31, 2024
Deferred tax liabilities
at December 31, 2024
Right-of-use assets & lease liabilities
319
502
18
839
849
(10)
Property plant and equipment
(3,235)
(16,675)
(436)
(20,346)
292
(20,638)
Other intangible assets
(179,702)
(21,187)
(89)
(200,978)
12
(200,990)
Evaluation tools
1,912
3,610
121
5,643
5,654
(11)
Employee benefits
4,358
17,427
3,290
25,075
25,075
—
Inventories
5,960
10,359
357
16,676
16,676
—
Provision for warranty
4,422
2,282
147
6,851
6,851
—
Accrued expenses
10,032
(3,383)
145
6,794
9,681
(2,887)
Tax losses carried forward
3,727
(642)
68
3,153
3,153
—
R&D tax credits
2,239
(2,263)
24
—
-
—
Set-off deferred taxes
—
-
-
—
(33,592)
33,592
Total deferred tax
(149,968)
(9,970)
3,645
(156,293)
34,651
(190,944)
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Financial statements
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168
The column 'Other' includes foreign currency translation differences, the impact of the remeasurement of the
deferred tax balance relating to post-employment benefits and the impact of the remeasurement of the deferred tax
balance related to Share-based compensation.
Deferred tax assets and/or liabilities for temporary differences are mainly recognized in the Netherlands, United
States, and Italy.
Income tax receivable and income tax payable
At December 31, 2024, the income tax receivable amounts to €4.8 million (2023: €30 million). The income tax
payable amounts to €66.2 million (2023: €21.9 million).
During 2024, the company paid income taxes of €97.6 million (2023: €118.8 million).
Unrecognized deferred tax assets
The credits concern R&D credits generated in the US, in the state of Arizona. However, ASM does not recognize
these credits stemming from prior years due to the fact that utilization of prior-year credits is only possible if and
when the credits generated in the current year are fully utilized. Given the level of R&D activity in the US, the
company does not expect it could fully utilize the credits generated in the current year and, hence, does not expect
to benefit from the available credits generated in prior years.
2024
Gross amount
Tax effect
Credits
31,571
31,571
Unrecognized deferred tax assets
31,571
31,571
Tax risks
The calculation of the company’s tax liabilities involves dealing with uncertainties in the application of complex tax
laws. The company’s estimate for the potential outcome of any unrecognized tax benefits is highly
judgmental. Settlement of unrecognized tax benefits in a manner inconsistent with the company’s expectations could
have a material impact on the company’s financial position, net earnings and cash flows. The company is subject to
tax audits in its major tax jurisdictions, and local tax authorities may challenge the positions taken by the company.
Pillar Two Global Minimum Tax
ASM operates in the Netherlands, which, along with other countries, has enacted legislation to implement the Pillar
Two Global Minimum top-up tax as of FY 2024. The Pillar Two Global Minimum Tax rules aim to ensure large
multinational enterprises pay a minimum level of tax on the income arising in each jurisdiction where they operate.
ASM has applied the mandatory temporary exemption, under which a company does not recognize or disclose
information about deferred tax assets and liabilities related to Pillar Two Global Minimum Taxes.
ASM made an assessment of the Pillar Two Minimum Tax due per year-end 2024. For this assessment, the company
made use of, amongst others, preliminary 2024 country-by-country reporting data, and the effective tax rate
reported by the ASM group entities to first determine the applicability of the county-by-country transitional safe
harbors. Based on this assessment, it is concluded that that for a majority of the jurisdictions in which ASM operates
the transitional safe harbor rules are met.
For a limited number of jurisdictions ASM is subject to Pillar Two top-up tax for which the tax impact has been
assessed in line with the Pillar Two Global Minimum Tax rules at €18.8 million.
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169
Note 24. Expenses by nature
Expenses by nature were as follows:
Year ended December 31,
2023
2024
Materials and supplies
1,048,119
1,141,354
Personnel expenses
563,589
595,300
Depreciation and amortization
176,258
195,352
Impairments
4,638
448
Other personnel-related expenses
103,076
114,882
Professional fees
44,825
49,382
Other 1
40,154
41,262
Total cost of sales, selling, general and administrative and research and
development expenses
1,980,659
2,137,980
1 Other relates to facility expenses, IT expenses and other expenses minus capitalized expenses.
Research and development consists of the following:
Year ended December 31,
2023
2024
Gross research and development expenses
410,240
469,812
Capitalization of development expenses
(147,220)
(166,343)
Amortization of capitalized development expenses
43,802
65,901
Total research and development expenses
306,822
369,370
Impairment of capitalized development expenses
2,475
448
Net research and development expenses
309,297
369,818
The impairment expenses in 2023 and 2024 are related to customer-specific projects.
Personnel expenses for employees were as follows:
December 31,
2023
2024
Wages and salaries
471,263
496,114
Social security
33,172
39,331
Pension expenses
22,059
18,832
Share-based payment expenses
37,095
41,023
Total
563,589
595,300
Personnel expenses are included in cost of sales and in operating expenses in the consolidated statement of profit or
loss.
The number of employees, exclusive of temporary workers, by geographical area were as follows:
December 31,
Geographical location
2023
2024
Europe:
- the Netherlands
226
190
- EMEA
455
456
United States
1,159
1,337
Japan
353
330
South Korea
473
493
Singapore
1,152
1,064
Asia, other
724
688
Total
4,542
4,558
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170
The number of employees, exclusive of temporary workers, by function at year-end was as follows:
December 31,
Per function
2023
2024
Research and development
1,075
1,135
Manufacturing
1,390
1,158
Marketing and sales
397
405
Customer service
1,226
1,392
Corporate and support functions
454
468
Total
4,542
4,558
Note 25. Earnings per share
Basic net earnings per common share is calculated by dividing net income attributable to common shareholders by
the weighted average number of common shares outstanding for that period. The dilutive effect is calculated using
the treasury stock method. The calculation of diluted net income per share assumes the exercise of options issued
under our stock option plans (and the issuance of shares under our share plans) for periods in which exercises (or
issuances) would have a dilutive effect.
The calculation of basic and diluted net income per share attributable to common shareholders is based on the
following data:
December 31,
2023
2024
Net earnings used for purposes of calculating net income per common share
Net earnings from operations
752,073
685,734
Basic weighted average number of shares outstanding during the year
49,286
49,165
Effect of dilutive potential common shares from stock options and restricted shares
269
221
Dilutive weighted average number of shares outstanding
49,555
49,386
Basic net earnings per share:
from operations
15.26
13.95
Diluted net earnings per share:
from operations
15.18
13.89
Note 26. Board remuneration
During 2024, the company considered the members of the Management Board, the Executive Committee, and the
Supervisory Board to be the key management personnel. Total remuneration for key management personnel in 2024
amounts to €25,360 (2023: €15,424). ASM does not provide any loans, deposits or related guarantees to the
members of the Management Board, the Executive Committee or the Supervisory Board.
Management Board and the Executive Committee
The table that sets out information concerning all remuneration from the company (including its subsidiaries) for
services in all capacities to all current and former members of the Management Board and the Executive Committee
of the company.
Management Board (excl. Executive Committee)
December 31,
2023
2024
Short-term employee benefits
4,576
3,468
Post-employment benefits
242
227
Other long-term benefits
-
-
Termination benefits
-
10,036
Share-based payment
2,880
3,304
Total remuneration
7,698
17,035
Management Board and the Executive Committee
December 31,
2023
2024
Short-term employee benefits
7,448
7,814
Post-employment benefits
310
292
Other long-term benefits
-
-
Termination benefits
1,159
10,036
Share-based payment
5,926
6,299
Total remuneration
14,843
24,441
The remuneration reported as part of the LTI (share-based payments) is based on costs incurred in accordance with
EU-IFRS. The costs of performance share awards are charged to the consolidated statement of profit or loss over
the three-year vesting period based on the number of awards expected to vest. The first year is accounted for at
target, subsequently the company applied the estimated number of share awards, and in the final performance year
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ASM Annual Report 2024
171
of the awards this estimate is updated to the best estimated number of awards which are anticipated to vest. Costs
of restricted share awards represent the vesting expenses related to the financial year.
As a result of the termination of the employment of one of the companies Executive Committee members, the
executive receives a termination benefit which has been expensed within the year of €10,036 (2023: €1,159).
Supervisory Board
The total remuneration (base compensation, no bonuses or pensions were paid) from the company (including its
subsidiaries) for services in all capacities to all current and former members of the Supervisory Board of the company
in 2024 amounts to €919 (2023: €581). No stock options or performance shares have been granted to members of
the Supervisory Board.
Note 27. Related party transactions
The company has a related party relationship with its subsidiaries, equity-accounted investees, and members of the
Supervisory Board and the Management Board. Related party transactions, if any, are conducted on an arm’s-length
basis with terms comparable to transactions with third parties.
During our most recent fiscal year, there has been no, and at present there is no, outstanding indebtedness to the
company owed by or owing to any director or officer of the company. Furthermore, the company has not granted
any personal loans, guarantees, or the like to key management personnel.
For more information on key management personnel – comprising our Management Board, Executive Committee and
Supervisory Board – see note 26 Board Remuneration.
Note 28. Principle Auditor's fees and services
KPMG Accountants N.V. has served as our external auditor for the years 2024 and 2023. The table sets out the
aggregate fees for professional audit services and other services rendered by the external auditors and its member
firms and/or affiliates in 2024 and 2023. The fees mentioned in the table for the audit of the financial statements
2024 (2023) relate to the total fees for the audit of the financial statements 2024 (2023), irrespective of whether the
activities were performed during the financial year 2024 (2023). Other audit‑related fees are related to assurance
services on non-financial information. The following fees were charged by KPMG Accountants N.V. to the company,
its subsidiaries and other consolidated companies, as referred to in Section 2:382a(1) and (2) of the Dutch Civil
Code.
2023
2024
KPMG
Accountants NV
KPMG
network
KPMG
Total
KPMG
Accountants NV
KPMG
network
KPMG
Total
Audit fees
1,005
312
1,317
1,062
326
1,388
Audit-related fees
110
-
110
500
-
500
Tax fees
-
-
-
-
-
-
Other fees
-
-
-
-
-
-
Total
1,115
312 1,427
1,562
326 1,888
Audit Committee preapproval policies
The Audit Committee has determined that the provision of services by KPMG described in the preceding paragraphs
is compatible with maintaining KPMG’s independence. All audit and permitted non-audit services provided by KPMG
during 2024 were preapproved by the Audit Committee.
The Audit Committee has adopted the following policies and procedures for preapproval of all audit and permitted
non-audit services provided by our external auditor:
Audit services
Management submits to the Audit Committee for preapproval the scope and estimated fees for specific services
directly related to performing the independent audit of our consolidated financial statements for the current year.
Audit-related services
The Audit Committee may preapprove expenditures up to a specified amount for services included in identified
service categories that are related extensions of audit services and are logically performed by the auditors (e.g.,
assurance services on non-financial information). Additional services exceeding the specified pre-approved limits
require specific Audit Committee approval.
Tax services
The Audit Committee may pre-approve expenditures up to a specified amount per engagement and in total for
identified services related to tax matters. Additional services exceeding the specified pre-approved limits, or
involving service types not included in the pre-approved list, require specific Audit Committee approval.
Other services
Any permitted other services that the external auditor provides are subject to preapproval by the Audit Committee.
The Audit Committee monitors compliance with the Dutch and EU regulation on non-audit services provided by an
external auditor, which outlines strict separation of audit and advisory services for Dutch public interest entities.
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Note 29. Subsidiaries
Unless otherwise indicated, these are, directly or indirectly, wholly-owned subsidiaries. The location included below is the principal place of business of the specified subsidiaries. There is no difference between the principal place of
business and country of incorporation.
Name
Location
ASM Europe B.V. 1
Almere, the Netherlands
100%
100%
ASM IP Holding B.V. 1
Almere, the Netherlands
100%
100%
ASM Pacific Holding B.V. 1,2
Almere, the Netherlands
100%
100%
ASM Netherlands Holding B.V. 1
Almere, the Netherlands
100%
100%
ASM United Kingdom Sales B.V. 1
Almere, the Netherlands
100%
100%
ASM Germany Sales B.V. 1
Almere, the Netherlands
100%
100%
ASM Czech s.r.o.
Nové Město, Czech Republic
100%
100%
LPE S.p.A. 3
Baranzate, Italy
100%
100%
Pilegrowth Tech S.r.l.
Cernobbio, Italy
100%
100%
LPE Shanghai Int. Trading Co.
Shanghai, China
100%
100%
ASM France S.A.R.L.
Crolles, France
100%
100%
ASM Italia S.r.l.
Milano, Italy
100%
100%
ASM Belgium N.V.
Leuven, Belgium
100%
100%
ASM Services and Support Ireland Ltd.
Dublin, Ireland
100%
100%
ASM Services and Support Israel Ltd.
Kiryat Gat, Israel
100%
100%
ASM Microchemistry Oy
Helsinki, Finland
100%
100%
ASM America Inc.
Phoenix, Arizona, United States of America
100%
100%
ASM NuTool Inc.
Phoenix, Arizona, United States of America
100%
100%
ASM Japan KK
Tokyo, Japan
100%
100%
ASM Wafer Process Equipment Singapore Pte Ltd
Singapore
100%
100%
ASM Front-End Manufacturing Singapore Pte Ltd
Singapore
100%
100%
ASM Services & Support Malaysia SDN. BHD.
Kulim, Malaysia
100%
100%
ASM Korea Ltd.
Dongtan, South Korea
100%
100%
ASM Front-End Sales & Services Taiwan Co Ltd.
Hsin-Chu, Taiwan
100%
100%
ASM Semiconductor Equipment India Private Limited
Bangalore, India
100%
100%
ASM China Ltd
Shanghai, People’s Republic of China
100%
100%
Subsidiaries (consolidated)
% Ownership December 31,
2023
2024
1 For these subsidiaries, ASM International N.V. has filed statements at the Dutch Chamber of Commerce assuming joint and several liability in accordance with Article 403, Part 9 of Book 2 of the Dutch Civil Code.
2 ASM Pacific Holding BV holds 24.73% of the shares in ASMPT Ltd.
3 LPE S.p.A. holds 4.32%, 2.3%, 10.5% and 50% of the shares in Anvil semiconductors Ltd., Kubo's, Kiselkarbid AB and SiC Systems AB respectively.
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173
Note 30. Subsequent events
Subsequent events were evaluated up to March 6, 2025,
which is the issuance date of this Annual Report 2024.
There are no other subsequent events to report.
Signing
Almere, the Netherlands
March 6, 2025
Supervisory Board
Pauline van der Meer Mohr, Chair
Stefanie Kahle-Galonske
Didier Lamouche
Marc de Jong
Adalio Sanchez
Tania Micki
Martin van den Brink
Management Board
Hichem M'Saad
Paul Verhagen
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29. ASM International N.V. Financial statements
29.1 Company balance sheet
(before proposed appropriation of net earnings for the year)
Non-current assets
Goodwill
2
302,089
302,089
Right-of-use assets
299
299
Investments in subsidiaries and associates
3
3,144,789
3,077,621
Loans to subsidiaries
3
1,469
-
Other non-current assets
6,428
6,297
Total non-current assets
3,455,074
3,386,306
Current assets
Amounts due from subsidiaries
6
111,846
150,994
Income tax receivable
5,780
-
Other current assets
1,334
1,346
Cash and cash equivalents
4
193,671
475,248
Total current assets
312,631
627,588
Total assets
3,767,705
4,013,894
December 31,
(€ thousand)
Notes
2023
2024
Equity
Common shares
1,977
1,973
Capital in excess of par value
71,323
9,326
Treasury shares
(89,569)
(130,376)
Legal reserves
Translation reserve
100,408
170,365
Other legal reserves
1,240,027
1,401,469
Accumulated net earnings
1,150,571
1,608,664
Net earnings current year
752,073
685,734
Total equity
5
3,226,810
3,747,155
Non-current liabilities
Lease liabilities
171
171
Contingent consideration payable
88,304
-
Total non-current liabilities
88,475
171
Current liabilities
Accounts payable
549
612
Amounts due to subsidiaries
6
444,424
142,727
Income tax payable
-
10,366
Accrued expenses and other payables
7,447
15,861
Contingent consideration payable
-
97,002
Total current liabilities
452,420
266,568
Total liabilities
540,895
266,739
Total equity and liabilities
3,767,705
4,013,894
December 31,
(€ thousand)
Notes
2023
2024
The notes on the following pages are an integral part of these company financial statements.
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175
29.2 Company statement of profit or loss
Year ended December 31,
(€ thousand)
Notes
2023
2024
Operating expenses:
Selling, general and administrative
(35,634)
(43,329)
Research and development
(1,795)
(490)
Total operating expenses
7
(37,429)
(43,819)
Result from operations
(37,429)
(43,819)
Finance income
14,706
(15,611)
Finance expense
(17,437)
(9,584)
Foreign currency exchange gain (loss)
(27,124)
(8,304)
Result before income taxes
(67,284)
(77,318)
Income taxes
11,040
(17)
Net earnings from holding activities
(56,244)
(77,335)
Net earnings from subsidiaries and associates
808,317
763,068
Total net earnings
752,073
685,733
The notes on the following pages are an integral part of these company financial statements.
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29.3 Notes to the Company financial statements
Note 1. Summary of material accounting policies
ASM International N.V. (ASM or the company) is a Dutch public liability company. Statutory seat: Versterkerstraat 8,
1322 AP Almere, the Netherlands.
The description of our activities and our structure, as included in the notes to the consolidated financial statements,
also apply to the company financial statements.
The accompanying company financial statements are stated in thousands of euros unless otherwise indicated.
Accounting policies applied
The financial statements of the company included in this section are prepared in accordance with Part 9 of Book 2 of
the Dutch Civil Code. For setting the principles for the recognition and measurement of assets and liabilities and
determination of results for the company financial statements, the company makes use of the option provided in
section 2:362(8) of the Dutch Civil Code. This means that the principles for the recognition and measurement of
assets and liabilities and determination of the result (hereinafter referred to as principles for recognition and
measurement) of the company financial statements of the company are the same as those applied for the
consolidated EU-IFRS financial statements. These principles also include the classification and presentation of
financial instruments, being equity instruments or financial liabilities. In case no other principles are mentioned, refer
to the accounting principles as described in the consolidated financial statements. For an appropriate interpretation
of these statutory financial statements, the company financial statements should be read in conjunction with the
consolidated financial statements.
Information on the use of financial instruments and on related risks for the group is provided in the notes to the
consolidated financial statements of the group.
Corporate income tax
The company is the head of the Dutch fiscal unity. The company recognizes the portion of corporate income tax that
it would owe as an independent taxpayer, taking into account the allocation of the advantages of the fiscal unity.
Settlement within the fiscal unity between the company and its subsidiaries takes place through current account
positions.
Participating interests in group companies
Group companies are all entities in which the company has directly or indirectly control. The company controls an
entity when it is exposed, or has rights, to variable returns from its involvement with the group company and has the
ability to affect those returns through its power over the group company. Group companies are recognized from the
date on which control is obtained by the company and derecognized from the date that control by the company over
the group company ceases. Participating interests in group companies are accounted for in the company financial
statements according to the net equity value, with the principles for the recognition and measurement of assets and
liabilities and determination of results as set out in the notes to the consolidated financial statements.
Participating interests with a negative net equity value are valued at nil. This measurement also covers any
receivables provided to the participating interests that are, in substance, an extension of the net investment. In
particular, this relates to loans for which settlement is neither planned nor likely to occur in the foreseeable future. A
share in the profits of the participating interest in subsequent years will only be recognized if and to the extent that
the cumulative unrecognized share of loss has been absorbed. If the company fully or partially guarantees the debts
of the relevant participating interest, or if has the constructive obligation to enable the participating interest to pay
its debts (for its share therein), then a provision is recognized accordingly to the amount of the estimated payments
by the company on behalf of the participating interest.
Share of result of participating interests
The share in the result of participating interests consists of the share of the company in the result of these
participating interests. Results on transactions involving the transfer of assets and liabilities between the company
and its participating interests and mutually between participating interests themselves, are eliminated to the extent
that they can be considered as not realized.
Note 2. Goodwill
The carrying amount of the goodwill is related to acquisitions in the following cash-generating units, remained
consistent throughout both the reporting and comparative periods.
• ALD: €2.6 million
• PEALD: €8.7 million
• SiC Epi: €290.8 million
Reference is made to Note 5 of the consolidated financial statements for further disclosure on the accounting and
valuation of goodwill.
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Note 3. Investments and loans to subsidiaries
Investments in
subsidiaries
Loans to
subsidiaries
Total
Balance January 1, 2023
3,161,858
2,259
3,164,117
Net result of subsidiaries and associates
808,317
-
808,317
Capital contribution
9,123
-
9,123
Other comprehensive income investments
(138)
-
(138)
Dividend received
(746,125)
-
(746,125)
Repayment of loans
-
(790)
(790)
Settlement through capital contribution
-
-
-
Dilution
2,607
-
2,607
Foreign currency translation effect
(90,854)
-
(90,854)
Balance December 31, 2023
3,144,788
1,469
3,146,257
Net result of subsidiaries and associates
763,068
-
763,068
Capital contribution
2,694
-
2,694
Other comprehensive income investments
(549)
-
(549)
Dividend received
(913,475)
-
(913,475)
Repayment of loans
-
(1,469)
(1,469)
Compensation expense share-based payments
6,982
—
6,982
Dilution
3,500
-
3,500
Foreign currency translation effect
70,613
-
70,613
Balance December 31, 2024
3,077,621
—
3,077,621
December 31,
2023
2024
Loans due from subsidiaries – non-current portion
1,469
-
Loans due from subsidiaries – current portion
-
-
Total
1,469
-
Note 4. Cash and cash equivalents
The amounts of cash and cash equivalents are mainly related to the cash pool and in‑house bank operated by the
company. At December 31, 2024, the cash pool and in‑house bank arrangement resulted in a liability which is
recorded in amounts due to subsidiaries.
The amount presented as cash and cash equivalents at December 31, 2024 include bank deposits and investments
in money market funds that invest in marketable debt obligations and securities of governments, corporate and
financial institutions. The amount invested in deposits and money market funds at the end of 2024 was €471.8
million and interest-bearing bank accounts of €3.4 million. Our cash and cash equivalents are predominantly
denominated in US dollars and partly in euros.
Bank guarantees are in place for an amount of €0.6 million at December 31, 2024. These guarantees mainly relate to
lease and tax payments.
Cash and cash equivalents have insignificant interest-rate risk and remaining maturities of maximum three months or
can be converted into cash without no more than 30 days' notice. The carrying amount of these financial assets
approximates their fair value. The company has not recognized a provision for expected credit loss for cash and cash
equivalents due to the insignificance of the amount.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
178
Note 5. Equity
The changes in equity are as follows:
Balance as of January 1, 2023
1,974
47,960
(3,446)
924,438
389,113
191,317
1,197,963
2,749,319
Appropriation of net earnings:
-
-
-
389,113
(389,113)
-
-
-
Components of comprehensive income
Net earnings
-
-
-
-
752,073
-
-
752,073
Other comprehensive income
-
-
-
-
-
(90,909)
(139)
(91,048)
Total comprehensive income (loss)
-
-
-
-
752,073
(90,909)
(139)
661,025
Dividend paid to common shareholders
-
-
-
(123,383)
-
-
-
(123,383)
Compensation expense share-based payments
-
37,308
-
-
-
-
-
37,308
Exercise stock options out of treasury shares
-
(1,965)
2,828
-
-
-
-
863
Vesting restricted shares out of treasury shares
-
(11,980)
11,980
-
-
-
-
-
Purchase of common shares
-
-
(100,928)
-
-
-
-
(100,928)
Issuance of common shares out of treasury shares
3
-
(3)
-
-
-
-
-
Change in retained earnings subsidiaries
-
-
-
22,521
-
-
(22,521)
-
Fair value accounting investments
-
-
-
19,077
-
-
(19,077)
-
Capitalized development expenses subsidiaries
-
-
-
(83,801)
-
-
83,801
-
Other movements in investments in associates:
Dilution
-
-
-
2,606
-
-
-
2,606
Balance as of December 31, 2023
1,977
71,323
(89,569)
1,150,571
752,073
100,408
1,240,027
3,226,810
Appropriation of net earnings
-
-
-
752,073
(752,073)
-
-
-
Components of comprehensive income:
Net earnings
-
-
-
-
685,734
-
-
685,734
Other comprehensive income
-
-
-
-
-
69,957
(549)
69,408
Total comprehensive income (loss)
-
-
-
-
685,734
69,957
(549)
755,142
Dividend paid to common shareholders
-
-
-
(135,487)
-
-
-
(135,487)
Compensation expense share-based payments
-
48,557
-
-
-
-
-
48,557
Vesting restricted shares out of treasury shares
-
(51,325)
51,325
-
-
-
-
-
Purchase of common shares
-
-
(151,366)
-
-
-
-
(151,366)
Change in retained earnings subsidiaries
-
-
-
(34,660)
-
-
34,660
-
Fair value accounting investments
-
-
-
(27,949)
-
-
27,949
-
Capitalized development expenses subsidiaries
-
-
-
(99,382)
-
-
99,382
-
Cancellation of common shares out of treasury shares
(4)
(59,230)
59,234
-
-
-
-
-
Other movements in investments in associates:
Dilution
-
-
-
3,500
-
-
-
3,500
Balance as of December 31, 2024
1,973
9,326
(130,376)
1,608,664
685,734
170,365
1,401,469
3,747,155
Legal reserves
(€ thousand)
Common shares
Capital in excess of par
value
Treasury shares
Accumulated net
earnings
Net earnings current
year
Translation reserve
Other legal reserves
Total equity
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
179
Common shares, preferred and financing preferred shares
Following the amendment of the articles of association on August 3, 2018, the authorized capital of the company
amounts to 82,500,000 common shares of €0.04 par value, 88,500 preferred shares of €40 par value, and 6,000
financing preferred shares of €40 par value.
As per December 31, 2024, 49,328,548 common shares with a nominal value of €0.04 each were issued and fully
paid up, of which 230,731 common shares are held by us in treasury. All shares have one vote per €0.04 par value.
Treasury shares held by the company cannot be voted on. Of our 49,097,817 outstanding common shares at
December 31, 2024, 47,132,271 are registered with our transfer agent in the Netherlands, ABN AMRO Bank N.V., and
1,965,546 are registered with our transfer agent in the United States, Citibank, NA, New York.
As at December 31, 2024, no preferred shares and no financing preferred shares are issued.
Treasury shares
With respect to treasury shares, reference is made to Note 12 to the consolidated financial statements.
Other legal reserves
The other legal reserve for participating interests regarding retained earnings and OCI, which amounts to €877,856
(2023: €815,796), pertains to participating interests that are accounted for according to the equity accounting
method. The reserve represents the difference between the participating interest retained earnings and direct
changes in equity, as determined on the basis of the company's accounting policies, and the share thereof that the
company may distribute. As to the latter share, this takes into account any profits that may not be distributed by
participating interests that are Dutch limited companies based on the distribution tests to be performed by the
management of those companies. The legal reserve is determined on an individual basis.
In accordance with applicable legal provisions, a legal reserve for the carrying amount of €523,613 (2023: €424,231)
has been recognized for capitalized development costs.
Changes in other legal reserves in 2023 and 2024 were as follows:
Reserve for
participating
interests, regarding
retained earnings
and OCI
Reserve for
participating
interests, regarding
capitalized
development
expenses
Total other legal
reserves
Balance as of January 1, 2023
857,533
340,430
1,197,963
Other comprehensive income
(139)
-
(139)
Retained earnings subsidiaries and investments
(22,521)
-
(22,521)
Fair value accounting investments
(19,077)
-
(19,077)
Development expenditures
-
83,801
83,801
Balance as of December 31, 2023
815,796
424,231
1,240,027
Other comprehensive income
(549)
-
(549)
Retained earnings subsidiaries and investments
34,660
-
34,660
Fair value accounting investments
27,949
-
27,949
Development expenditures
-
99,382
99,382
Balance as of December 31, 2024
877,856
523,613
1,401,469
For detailed information, reference is made to Note 12 to the consolidated financial statements.
Employee stock plan, and employee restricted shares plan
The company has adopted various restricted share plans, and has entered into related agreements with various
employees. For detailed information, reference is made to Note 13 to the consolidated financial statements.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
180
Appropriation of result
Appropriation of net earnings of 2023
The financial statements for the reporting year 2023 have been adopted by the General Meeting on May 13th, 2024.
The General Meeting has adopted the appropriation of net earnings for the reporting year 2023 as proposed by the
Management Board.
Proposal for net earnings appropriation 2024
It is proposed that net earnings for the year 2024 are carried to the accumulated net earnings.
Note 6. Amounts due from / to subsidiaries
The amounts due from, and to subsidiaries, are mainly related to the cash pool and in‑house bank operated by the
company. The amounts due to subsidiaries decreased as a result of intercompany dividend distributions to the
ultimate parent (ASM International N.V.).
Note 7. Expenses by nature
Expenses by nature were as follows:
Year ended December 31,
2023
2024
Personnel expenses
16,960
19,756
Depreciation and amortization
179
151
Other personnel-related expenses
3,544
11,841
Professional fees
9,971
7,319
Other
6,775
4,752
Total operating expenses
37,429
43,819
Note 8. Personnel expenses
The average number of employees of ASM during 2024 was 32 (2023: 35). All employees have corporate and
support functions and were based in the Netherlands.
Year ended December 31,
2023
2024
Salaries
12,265
12,677
Social security charges
371
335
Pension expenses
1,068
1,024
Share-based payment expenses
3,256
5,720
Total
16,960
19,756
Detailed information on the number of employees can be found in Note 24 to the consolidated financial statements.
For information on the parent company's defined benefit pension plan, the remuneration of the Management Board
and the Supervisory Board, and the parent company's share‑based compensation plans, see notes 13 and 26 to the
consolidated financial statements.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
181
Note 9. Commitments and contingencies
With respect to certain Dutch subsidiaries, ASM has assumed joint and several liability in accordance with Article
403, Part 9 of Book 2 of the Dutch Civil Code. These Dutch subsidiaries are disclosed in Note 29 of the consolidated
financial statements.
ASM forms a fiscal unity (tax group for corporate income tax purposes) together with its Dutch subsidiaries for
purposes of Dutch tax laws and is as such jointly and severally liable for the tax debts of the unity. The tax unity
consists of ASM International N.V. and the following subsidiaries:
• ASM Europe BV;
• ASM IP Holding BV;
• ASM Pacific Holding BV;
• ASM Netherlands Holding BV;
• ASM United Kingdom Sales BV; and
• ASM Germany Sales BV.
Consistent with the IAS 12 amendment regarding global minimum top-up tax as issued by the IASB and adopted by
the EU, ASM does not recognize and disclose deferred taxes arising from tax laws regarding global minimum top-up
tax. Furthermore, ASM recognized and disclosed the impact from the global minimum income tax on current tax
effective as of 2024. Refer to section 'Global minimum tax' in income taxes as part of Note 23 of the consolidated
financial statements for further clarification on the impact for 2024.
For VAT purposes in the Netherlands, ASM forms a fiscal unity together with ASM Europe BV and ASM IP Holding BV.
Note 10. Share ownership of the Management Board and Supervisory Board
With respect to share ownership of the Management Board and Supervisory Board, reference is made to Note 27 to
the consolidated financial statements.
Note 11. Auditor's fees and services
For information regarding auditor's fees and services we refer to Note 28 to the consolidated financial statements.
Note 12. Subsequent events
Subsequent events were evaluated up to March 6, 2025, which is the issuance date of this Annual Report 2024.
There are no other subsequent events to report.
Signing
Almere, the Netherlands
March 6, 2025
Supervisory Board
Pauline van der Meer Mohr, Chair
Stefanie Kahle-Galonske
Didier Lamouche
Marc de Jong
Adalio Sanchez
Tania Micki
Martin van den Brink
Management Board
Hichem M'Saad
Paul Verhagen
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
182
30. Other information
30.1 Articles of association:
appropriation of profit and voting rights
The additional information below includes a brief
summary of several significant provisions of our Articles
of Association.
Information on the provisions in the articles of
association relating to the appropriation of
profit
The Articles of Association of ASM International N.V. (the
company) provide the following with regard to
distribution of profit and can be summarized as follows:
• From the profits, distributions shall in the first place, if
possible, be made on the preferred shares equal to
the Euribor rate for six-months loans, increased by
one and a half, on the paid-up amount which had to
be paid on the preferred shares, weighted to the
number of days to which this was applicable. If profits
are insufficient, the dividend will be paid from the
reserves with priority over any dividends. If the
reserves are insufficient, the dividend deficit has to
be made up in future years;
• Second, a dividend, if possible, is distributed on
financing preferred shares. The dividend is
a percentage of the par value, plus share premium
paid, on the financing preferred shares. The
percentage is determined by the Management Board,
subject to approval of the Supervisory Board. The
percentage is related to the average effective yield
on government loans with a weighted average
remaining term of no more than 10 years, if necessary
increased or decreased by no more than 3%, subject
to the then prevailing market conditions. If profits are
insufficient, the dividend shall be paid from the
reserves. If the reserves are insufficient, the dividend
deficit has to be made up in future years;
• With the approval of the Supervisory Board, the
Management Board will determine which part of the
profit remaining after adoption of the provisions of the
previous paragraphs will be reserved. The profit after
reserving will be at the disposal of the Annual General
Meeting of Shareholders;
• The company may only make distributions to the
shareholders and other persons entitled to profit
insofar as its equity exceeds the amount of the paid-
up and called amounts of the share capital increased
with the reserves that must be kept by virtue of law;
and
• Article 33, paragraph 3 of the Articles of Association
provides that dividend claims expire after the lapse of
five years.
For the full text, please see our website.
Special statutory control rights
Article 27 of the Articles of Association provides that
each common share gives the right to cast one vote,
each preferred financing share to cast 1,000 votes, and
each preferred share to cast 1,000 votes.
Article 29 of the Articles of Association provides that
meetings of holders of preferred shares or of financing
preferred shares shall be convened as often and insofar
as a decision of the meeting of holders of preferred
shares or financing shares desires this, and furthermore
as often as the Management Board and or the
Supervisory Board shall decide to hold such a meeting.
At the meeting, resolutions will be passed with an
absolute majority of the votes. In the event that there is
a tie of votes, no resolution will take effect.
As per December 31, 2024, there were no outstanding
preferred shares or financing preferred shares issued.
The following resolutions and actions can only be taken
on a proposal by the Management Board and the
Supervisory Board:
• any amendment to the Articles of the company; and
• the dissolution of the company.
Treasury shares
Pursuant to Dutch law, no votes may be cast at a
General Meeting in respect of treasury shares, i.e. shares
which are held by the company. As set out in note 12, as
of December 31, 2024, a total number of 230,731
treasury shares was outstanding. For the complete text,
please see our website.
30.2 Branch offices
ASM has branch offices in the United Kingdom and
Germany that operate under the respective trade names
ASM UK Sales B.V. ASM Germany Sales B.V.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
183
30.3 Independent auditor’s report
To: The General Meeting of Shareholders and the
Supervisory Board of ASM International N.V.
Report on the audit of the financial statements
2024 included in the annual report
Our opinion
In our opinion:
• the accompanying consolidated financial statements
give a true and fair view of the financial position of
ASM International N.V. as at December 31, 2024 and
of its result and its cash flows for the year then
ended, in accordance with IFRS Accounting
Standards as endorsed by the European Union (EU-
IFRS) and with Part 9 of Book 2 of the Dutch Civil
Code.
• the accompanying company financial statements give
a true and fair view of the financial position of ASM
International N.V. as at December 31, 2024 and of its
result for the year then ended in accordance with Part
9 of Book 2 of the Dutch Civil Code.
What we have audited
We have audited the financial statements 2024 of ASM
International N.V. (the Company) based in Almere. The
financial statements include the consolidated financial
statements and the company financial statements.
The consolidated financial statements comprise:
1
the consolidated statement of financial position as at
December 31, 2024;
2 the following consolidated statements for 2024: the
statement of profit or loss, the statement of
comprehensive income, changes in equity and cash
flows; and
3 the notes comprising material accounting policy
information and other explanatory information.
The company financial statements comprise:
1. the company balance sheet as at December 31, 2024;
2. the company statement of profit or loss for 2024; and
3. the notes comprising a summary of the accounting
policies and other explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch law,
including the Dutch Standards on Auditing. Our
responsibilities under those standards are further
described in the ‘Our responsibilities for the audit of the
financial statements’ section of our report.
We are independent of ASM International N.V. in
accordance with the ‘Verordening inzake de
onafhankelijkheid van accountants bij assurance-
opdrachten’ (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to independence)
and other relevant independence regulations in the
Netherlands. Furthermore, we have complied with the
‘Verordening gedrags- en beroepsregels
accountants’ (VGBA, Dutch Code of Ethics).
We designed our audit procedures in the context of our
audit of the financial statements as a whole and in
forming our opinion thereon. The information in respect
of going concern, fraud and non-compliance with laws
and regulations, climate and the key audit matters was
addressed in this context, and we do not provide a
separate opinion or conclusion on these matters.
We believe the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Information in support of our opinion
Summary
Materiality
• Materiality of EUR 43 million
• 4.95% of normalized result before income taxes
Group audit
• Audit coverage of 89% of total assets
• Audit coverage of 94% of revenue
Risk of material misstatements related to Fraud, NOCLAR, Going concern and Climate-related risks
• Fraud risks: presumed risks of management override of controls and revenue recognition identified and further
described in the section ‘Audit response to the risk of fraud and non-compliance with laws and regulations’
• Non-compliance with laws and regulations (NOCLAR) risks: no reportable risk of material misstatements related
to NOCLAR risks identified.
• Going concern risks: no going concern risks identified.
• Climate risks: we have considered the impact of climate-related risks on the financial statements and described
our approach and observations in the section ‘Audit response to climate-related risks’. We found that climate-
related risks have no material impact on the current financial statements under the requirements of EU-IFRS and
no material impact on our key audit matters.
Key audit matters
• Revenue recognition (risk of fraud)
• Accounting for capitalized development costs (risk of error)
Materiality
Based on our professional judgment, we determined the
materiality for the financial statements as a whole at EUR
43 million (2023: EUR 33 million). The materiality is
determined with reference to the result before income
taxes, resulting in a percentage of 4.95%. We consider
the result before income taxes as the most appropriate
benchmark because the Company is a profit-oriented
company and the key users of the financial statements
are primarily focused on this metric.
We have also taken into account misstatements and/or
possible misstatements that in our opinion are material
for the users of the financial statements for qualitative
reasons.
We agreed with the Supervisory Board that
misstatements identified during our audit in excess of
EUR 2.15 million would be reported to them, as well as
smaller misstatements that in our view must be reported
on qualitative grounds.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
184
Scope of the group audit
ASM International N.V. is at the head of a group of
components (hereafter “Group”). The financial
information of this group is included in the financial
statements of ASM International N.V.
This year, we applied the revised group auditing
standard in our audit of the financial statements. The
revised standard emphasizes the role and
responsibilities of the group auditor. The revised
standard contains new requirements for the
identification and classification of components, scoping,
and the design and performance of audit procedures
across the group.
We performed risk assessment procedures throughout
our audit to determine which of the Group’s components
are likely to include risks of material misstatement to the
Group financial statements. To appropriately respond to
those assessed risks, we planned and performed further
audit procedures, either at component level or centrally.
We identified eight components associated with a risk of
material misstatement. For one out of these components
we involved a component auditor. We audited the
remaining components. We set component performance
materiality levels considering the component’s size and
risk profile.
We have performed substantive procedures for 94% of
Group revenue and 89% of Group total assets. At group
level, we assessed the aggregation risk in the remaining
financial information and concluded that there is less
than reasonable possibility of a material misstatement.
In supervising and directing our component auditor, we:
• Held risk assessment discussions with the component
auditor to obtain their input to identify matters
relevant to the group audit.
• Issued group audit instructions to the component
auditor on the scope, nature and timing of their work,
and received written communication about the results
of the work they performed.
• Held meetings with the component auditor virtually to
discuss relevant developments, understand and
evaluate their work and attended a meeting with local
management.
• Inspected the work performed by the component
auditor and evaluated the appropriateness of audit
procedures performed and conclusions drawn from
the audit evidence obtained, and the relation between
communicated findings and work performed. In our
inspection we mainly focused on key audit matters,
significant risks, key judgments and audit findings as
well as the observations reported to us as the group
auditor.
We consider that the scope of our group audit forms an
appropriate basis for our audit opinion. Through
performing the procedures mentioned above we
obtained sufficient and appropriate audit evidence about
the Group’s financial information to provide an opinion on
the financial statements as a whole.
Audit response to the risk of fraud and non-compliance
with laws and regulations
In the risk management and the business conduct
chapters of the annual report, the Management Board
describes its procedures in respect of the risk of fraud
and non-compliance with laws and regulations and the
Supervisory Board reflects on this.
As part of our audit, we have gained insights into the
Company and its business environment and the
Company’s risk management in relation to fraud and
non-compliance with laws and regulations. Our
procedures included, among other things, assessing the
Company’s code of business conduct, whistle-blower
program, incidents register and its procedures to
investigate indications of possible fraud and non-
compliance.
Furthermore, we performed relevant inquiries with
management, those charged with governance and other
relevant functions, such as Internal Audit and Legal
Counsel and included correspondence with relevant
supervisory authorities and regulators in our evaluation.
We have also incorporated elements of unpredictability
in our audit, such as: modifying the nature and extent of
our inventory count procedures, and involved forensic
specialists in our audit procedures.
As a result from our risk assessment, we identified the
following laws and regulations as those most likely to
have a material effect on the financial statements in case
of non-compliance:
–
Trade sanctions and export controls laws and
regulations (reflecting the Company’s exposure to
international trading restrictions); and
–
Anti-bribery and corruption laws and regulations
(reflecting the Company’s significant and
geographically diverse operations).
Based on the above and on the auditing standards, we
identified the following fraud risks that are relevant to
our audit, and responded as follows:
Management override of controls
(a presumed risk)
Risk:
Management is in a unique position to manipulate
accounting records and prepare fraudulent financial
statements by overriding controls that otherwise appear
to be operating effectively.
Responses:
• We evaluated the design and the implementation of
internal controls that mitigate fraud risks, such as
processes related to journal entries.
• We performed a data analysis of high-risk journal
entries including a search for journal entries related to
debiting revenue with an unexpected associated
credit, and evaluated key estimates – for example in
the valuation of share-based compensation – and
judgments for bias by the Company’s management.
Revenue recognition (a presumed risk)
Risk:
We identified a cut-off fraud risk in relation to
completeness of equipment sales as a result of
recognition in the incorrect period. This risk inherently
includes the fraud risk that management deliberately
understates revenue, as management may feel pressure
to achieve planned results for the next year.
Responses:
• We refer to the key audit matter 'Revenue
Recognition'.
Other than the above matter, our evaluation of
procedures performed related to fraud did not result in
an additional key audit matter.
We communicated our risk assessment, audit responses
and results to management and the Audit Committee of
the Supervisory Board.
Our audit procedures did not reveal indications and/or
reasonable suspicion of fraud and non-compliance that
are considered material for our audit.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
185
Audit response to going concern
The Management Board has performed its going
concern assessment and has not identified any going
concern risks. To assess the Management’s Board
assessment we have performed, inter alia, the following
procedures.
• we considered whether the Management Board’s
assessment of the going concern risks includes all
relevant information of which we are aware as a result
of our audit; and
• we analyzed the Company’s financial position as at
year-end and compared it to the previous financial
year in terms of indicators that could identify going
concern risks.
The outcome of our risk assessment procedures did not
give reason to perform additional audit procedures on
management’s going concern assessment.
Audit response to climate-related risks
The Company has set out its ambitions relating to
climate change in the chapter “Climate Action” of the
annual report. The Company publicly communicated
their key ambition to achieve carbon neutrality with net
zero emissions in its operations and its value chain
(Scope 1, 2 and 3) by 2035 in their “Climate Transition
Plan”.
Management has assessed, against the background of
the Company’s business and operations, in detail how
climate-related risks and opportunities and the
Company’s own ambitions could have a significant
impact on its business or could impose the need to
adapt its strategy and operations. Management has
considered the impact of both transition and physical
risks on the financial statements in accordance with the
applicable financial reporting framework, more
specifically the valuation of non-current assets, as
described in section 16.1 Climate impacts, risks and
opportunities of the Annual Report.
Management prepared the financial statements,
including considering whether the implications from
climate-related risks, ambitions and the current financial
effects relating to sustainability matters as disclosed in
the sustainability statements have been appropriately
accounted for and disclosed. As part of our audit, we
performed a risk assessment of the impact of climate-
related risk and the ambitions of the Company in respect
of climate change on the financial statements and our
audit approach. In doing this we performed the following:
• To understand management's assessment, against
the background of the Company’s business and
operations of the potential impact of climate-related
risk and opportunities on the Company’s Annual
Report and financial statements and the Company's
preparedness for this we:
–
performed inquiries with relevant functions in the
company including the Management Board, the
Corporate VP of Sustainability, the Company’s legal
counsel and the Audit Committee of the
Supervisory Board; and
–
inspected relevant supporting documentation,
such as management’s climate risk, scenario and
resilience analysis and the corresponding financial
impact assessment.
• The Company has disclosed that it has prepared its
sustainability statements in accordance with the
European Sustainability Reporting Standards (ESRS).
We have read, and considered as part of our risk
assessment, these sustainability statements, which
includes information over material sustainability
matters relating to material impacts, risks and
opportunities relating to climate change. As part of
this, we have read and considered the information
reported over the connectivity of the sustainability
statements with the financial statements.
• We have evaluated climate related fraud risk factors,
including the KPI’s related to climate in Management’s
remuneration. We have assessed whether this results
in a risk of material misstatement of the financial
statements due to fraud.
• We have made use of KPMG climate risk expert to:
1. support in understanding how climate-related risks
and opportunities may affect the entity, in order to
understand (potential) implications on its
accounting in the current year’s financial
statements;
2. support in obtaining an understanding of
management’s processes and procedures with
regards to climate-related risks, inspecting the
Company’s climate risk scenario analysis (including
climate change strategy) and the resilience
analysis, including assessing follow-up actions
taken by management compared to prior year;
3. and obtaining insights into potential business
implications of the identified climate risks and
opportunities on the Company. These insights
provided us with a better understanding how
climate-related risks and opportunities may affect
the Company and the preparation of the financial
statements.
Based on the risk assessment procedures performed we
found that climate-related risks have no material impact
on the current financial statements and no material
impact on our key audit matters.
Furthermore we have read the ‘Other information’,
including the information over material sustainability
matters relating to material impacts, risks and
opportunities relating to climate change, with respect to
climate-related risks as included in the Annual Report
and considered whether such information contains
material inconsistencies with the financial statements or
our knowledge obtained through the audit, in particular
as described above and our knowledge obtained
otherwise.
Our key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements. We have
communicated the key audit matters to the Supervisory
Board. The key audit matters are not a comprehensive
reflection of all matters discussed.
Revenue recognition (risk of fraud)
Description
As disclosed in the notes to the consolidated financial
statements, equipment sales are measured taking into
account multiple element arrangements as contracts
with customers typically include separately identifiable
performance obligations that are recognized based on
their relative selling price. Typically, this includes a single
sales transaction that combines the delivery of goods
and rendering of (installation) services. Furthermore,
equipment sales are recognized when the customer
obtains control of the products and services, often
coinciding with shipment or delivery of goods.
We identified a cut-off risk that equipment sales could
be misstated as a result of recognition in the incorrect
period. This risk inherently includes the fraud risk that
management deliberately understates revenue, as
management may feel pressure to achieve planned
results for the next year. We consider revenue
recognition a key audit matter, due to the thereto related
risk of management override of controls, as well as the
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Financial statements
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fraud risk concerning the completeness of equipment
sales in the cut-off period of the financial year.
Our response
Our audit procedures to address this key audit matter
included, among others:
• evaluating the design and implementation of the
Company’s internal control in the sales process that
would identify a misstatement as a result of revenue
recognition in the incorrect accounting period;
• assessing the appropriateness of the Company’s
accounting policies relating to revenue recognition
and assessing compliance with IFRS 15;
• assessing the completeness of sales by selecting
samples during the cut-off period, with specific focus
on the equipment sales recorded from January 1,
2025 through January 14, 2025, to agree the timing of
revenue recognition to underlying supporting
documents such as shipping documents;
• inquiring with management and those who have
responsibilities for initiating, preparing or authorizing
journal entries at period end whether there was
inappropriate or unusual activity relating to the
processing of journal entries and other adjustments
during the period;
• searching for high-risk journal entries (such as journal
entries debiting revenue with an unexpected
associated credit) from the population of journal
entries from the ERP system with the involvement of
our IT auditors; and
• assessing the adequacy of the revenue disclosures
included in Note 22 of the financial statements.
Our observation
The results of our procedures related to the revenue
recognition of equipment sales are satisfactory. We
consider the disclosure in Note 22 of the financial
statements as adequate.
Accounting for capitalized development costs
(risk of error)
Description
Capitalized development costs are deemed to be
significant to our audit, given the significance of the
capitalized balance of EUR 524 million including
additions of EUR 166 million in 2024, as well as the
specific criteria that have to be met for capitalization.
This involves management judgment on capitalized
development costs not in use including the additions for
the year, with respect to technical feasibility, intention
and ability to complete the intangible asset, the ability to
use or sell the asset, the generation of future economic
benefits and the ability to measure the costs reliably.
Our response
Our audit procedures to address this key audit matter
included, among others:
–
assessing the appropriateness of the Company’s
accounting policies relating to internal and external
cost capitalization and assess compliance with IFRS;
–
evaluating the design and implementation of the
Company’s internal control in the R&D process that
would identify a misstatement as an incorrect
capitalization of development expenses;
–
challenging the key assumptions used, or judgments
made, in capitalizing development costs, such as
technical feasibility, intention and ability to complete
the intangible asset, the ability to use or sell the asset
and generation of future economic benefits, the
accuracy of costs included and the useful economic
life attributed to the asset based on development
plans, pre-orders and customer communications; and
–
assessing the adequacy of the other intangible assets
disclosures included in note 6 of the financial
statements.
Our observation
The results of our procedures related to the accounting
for capitalized development costs are satisfactory. We
consider the disclosure in Note 6 of the financial
statements as adequate.
Report on the other information included in the
Annual Report
In addition to the financial statements and our auditor’s
report thereon, the Annual Report contains other
information.
Based on the following procedures performed, we
conclude that the other information:
• is consistent with the financial statements and does
not contain material misstatements; and
• contains the information as required by Part 9 of Book
2 of the Dutch Civil Code for the management report
and other information.
We have read the other information. Based on our
knowledge and understanding obtained through our
audit of the financial statements or otherwise, we have
considered whether the other information contains
material misstatements.
By performing these procedures, we comply with the
requirements of Part 9 of Book 2 of the Dutch Civil Code
and the Dutch Standard 720. The scope of the
procedures performed is less than the scope of those
performed in our audit of the financial statements.
The Management Board of the Company is responsible
for the preparation of the other information, including the
information as required by Part 9 of Book 2 of the Dutch
Civil Code.
Report on other legal and regulatory
requirements and ESEF
Engagement
We were initially appointed by the Annual General
Meeting of Shareholders as auditor of ASM International
N.V. on May 21, 2014, as of the audit for the year 2015
and have operated as statutory auditor ever since that
financial year.
No prohibited non-audit services
We have not provided prohibited non-audit services as
referred to in Article 5(1) of the EU Regulation on specific
requirements regarding statutory audits of public-
interest entities.
European Single Electronic Format (ESEF)
ASM International N.V. has prepared its annual report in
ESEF. The requirements for this are set out in the
Delegated Regulation (EU) 2019/815 with regard to
regulatory technical standards on the specification of a
single electronic reporting format (hereinafter: the RTS
on ESEF).
In our opinion the annual report prepared in XHTML
format, including the (partly) marked-up consolidated
financial statements as included in the reporting
package by ASM International N.V., complies in all
material respects with the RTS on ESEF.
The Management Board of the Company is responsible
for preparing the Annual Report including the financial
statements in accordance with the RTS on ESEF,
whereby the Management Board combines the various
components into one single reporting package.
Our responsibility is to obtain reasonable assurance for
our opinion whether the annual report in this reporting
package complies with the RTS on ESEF. We performed
our examination in accordance with Dutch law, including
Dutch Standard 3950N ’Assurance-opdrachten inzake
het voldoen aan de criteria voor het opstellen van een
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digitaal verantwoordingsdocument’ (assurance
engagements relating to compliance with criteria for
digital reporting). Our examination included, among
others:
• obtaining an understanding of the entity's financial
reporting process, including the preparation of the
reporting package;
• identifying and assessing the risks that the annual
report does not comply in all material respects with
the RTS on ESEF and designing and performing
further assurance procedures responsive to those
risks to provide a basis for our opinion, including:
–
obtaining the reporting package and performing
validations to determine whether the reporting
package containing the Inline XBRL instance
document and the XBRL extension taxonomy files
have been prepared in accordance with the
technical specifications as included in the RTS on
ESEF; and
–
examining the information related to the
consolidated financial statements in the reporting
package to determine whether all required mark-
ups have been applied and whether these are in
accordance with the RTS on ESEF.
Description of responsibilities regarding the
financial statements
Responsibilities of the Management Board and the
Supervisory Board of the Company for the financial
statements
The Management Board is responsible for the
preparation and fair presentation of the financial
statements in accordance with EU-IFRS and Part 9 of
Book 2 of the Dutch Civil Code.
Furthermore, the Management Board is responsible for
such internal control as management determines is
necessary to enable the preparation of the financial
statements that are free from material misstatement,
whether due to fraud or error. In that respect the
Management Board, under supervision of the
Supervisory Board, is responsible for the prevention and
detection of fraud and non-compliance with laws and
regulations, including determining measures to resolve
the consequences of it and to prevent recurrence.
As part of the preparation of the financial statements,
the Management Board is responsible for assessing the
Company’s ability to continue as a going concern. Based
on the financial reporting frameworks mentioned, the
Management Board should prepare the financial
statements using the going concern basis of accounting
unless the Management Board either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so. The Management Board should
disclose events and circumstances that may cast
significant doubt on the Company’s ability to continue as
a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the
Company’s financial reporting process.
Our responsibilities for the audit of the financial
statements
Our objective is to plan and perform the audit
engagement in a manner that allows us to obtain
sufficient and appropriate audit evidence for our opinion.
Our audit has been performed with a high, but not
absolute, level of assurance, which means we may not
detect all material errors and fraud during our audit.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
financial statements. The materiality affects the nature,
timing and extent of our audit procedures and the
evaluation of the effect of identified misstatements on
our opinion.
A further description of our responsibilities for the audit
of the financial statements is located at the website of
de ‘Koninklijke Nederlandse Beroepsorganisatie van
Accountants’ (NBA, Royal Netherlands Institute of
Chartered Accountants). This description forms part of
our auditor’s report.
Amstelveen, March 6, 2025
KPMG Accountants N.V.
F.A.M. Croiset van Uchelen RA
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Financial statements
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30.4 Limited assurance report of the
independent auditor on the
sustainability statements
To: The Supervisory Board of ASM International N.V.
Our conclusion
We have performed a limited assurance engagement on
the consolidated sustainability statements for 2024 of
ASM International N.V. based in Almere (hereinafter: the
company) in the section ‘Sustainability statements’ of the
accompanying annual report, including the information
incorporated in the sustainability statements by
reference (hereinafter: the sustainability statements).
Based on the procedures performed and the assurance
evidence obtained, nothing has come to our attention
that causes us to believe that the sustainability
statements are not, in all material respects:
— prepared in accordance with the European
Sustainability Reporting Standards (ESRS) as adopted by
the European Commission and in accordance with the
double materiality assessment process carried out by
the company to identify the information reported
pursuant to the ESRS; and
— compliant with the reporting requirements provided
for in Article 8 of Regulation (EU) 2020/852 (Taxonomy
Regulation).
Basis for our conclusion
We performed our limited assurance engagement on the
sustainability statements in accordance with Dutch law,
including Dutch Standard 3810N ‘Assurance-opdrachten
inzake duurzaamheidsverslaggeving’ (Assurance
engagements relating to sustainability reporting) which
is a specified Dutch standard that is based on the
International Standard on Assurance Engagements
(ISAE) 3000 (Revised) ’Assurance engagements other
than audits or reviews of historical financial information’.
Our responsibilities under this standard are further
described in the section ‘Our responsibilities for the
assurance engagement on the sustainability statements’
section of our report.
We are independent of ASM International N.V. in
accordance with the ‘Verordening inzake de
onafhankelijkheid van accountants bij assurance-
opdrachten’ (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to
independence). Furthermore, we have complied with the
‘Verordening gedrags- en beroepsregels
accountants’ (VGBA, Dutch Code of Ethics for
Professional Accountants).
We believe the assurance evidence we have obtained is
sufficient and appropriate to provide a basis for our
conclusion.
Emphasis of matter
We draw attention to chapter 15 ‘General disclosures’ on
page 57 of the sustainability statements. This disclosure
sets out that the sustainability statements have been
prepared in a context of new sustainability reporting
standards requiring entity-specific interpretations and
addressing inherent measurement or evaluation
uncertainties.
This section also outlines the value chain estimation and
sources of estimation and outcome uncertainty in the
sustainability statements that identify circumstances
around the quantitative metrics that are subject to a high
level of measurement uncertainty and discloses
information about the sources of measurement
uncertainty and the assumptions, approximations and
judgements the company has made in measuring these
in compliance with the ESRS.
The comparability of sustainability information between
entities and over time may be affected by the lack of
historical sustainability information in accordance with
the ESRS and by the absence of a uniform practice on
which to draw, to evaluate and measure this information.
This allows for the application of different, but
acceptable, measurement techniques.
Furthermore these disclosures explain the double
materiality assessment process, including robust
engagement with affected stakeholders. Due diligence is
an on-going practice that responds to and may trigger
changes in the company’s strategy, business model,
activities, business relationships, operating, sourcing and
selling contexts. The double materiality assessment
process may also be impacted in time by sector-specific
standards to be adopted. The sustainability statements
may not include every impact, risk and opportunity or
additional entity-specific disclosure that each individual
stakeholder (group) may consider important in its own
particular assessment.
Our conclusion is not modified in respect to these
matters.
Corresponding information not subject
to assurance procedures
No reasonable or limited assurance procedures have
been performed on the comparative figures in
accordance with ESRS in the sustainability statements of
prior year. Consequently, the corresponding
sustainability information and thereto related disclosures
for the period 2023 have not been subject to assurance
procedures.
Our conclusion is not modified in respect to this matter.
Limitations to the scope of our
assurance engagement
In reporting forward-looking information in accordance
with the ESRS, the Management Board of the company is
required to prepare the forward-looking information on
the basis of disclosed assumptions about events that
may occur in the future and possible future actions by
the company. The actual outcome is likely to be different
since anticipated events frequently do not occur as
expected. Forward-looking information relates to events
and actions that have not yet occurred and may never
occur. We do not provide assurance on the achievability
of this forward-looking information
The references to external sources or websites in the
sustainability information are not part of the
sustainability information as included in the scope of our
assurance engagement. We therefore do not provide
assurance on this information.
Our conclusion is not modified in respect to these
matters.
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Financial statements
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Responsibilities of the Management
Board and the Supervisory Board for the
sustainability statements
The Management Board is responsible for the
preparation of the sustainability statements in
accordance with the ESRS, including the double
materiality assessment process carried out by the
company as the basis for the sustainability statements
and disclosure of material impacts, risks and
opportunities in accordance with the ESRS. As part of
the preparation of the sustainability statements,
management is responsible for compliance with the
reporting requirements provided for in Article 8 of
Regulation (EU) 2020/852 (Taxonomy Regulation).The
Management Board is also responsible for selecting and
applying additional entity-specific disclosures to enable
users to understand the company’s sustainability-related
impacts, risks or opportunities and for determining that
these additional entity-specific disclosures are suitable
in the circumstances and in accordance with the ESRS.
Furthermore, the Management Board is responsible for
such internal control as it determines is necessary to
enable the preparation of the sustainability statements
that is free from material misstatement, whether due to
fraud or error.
The Supervisory Board is responsible for overseeing the
sustainability reporting process including the double
materiality assessment process carried out by the
company.
Our responsibilities for the assurance
engagement on the sustainability
statements
Our responsibility is to plan and perform the assurance
engagement in a manner that allows us to obtain
sufficient and appropriate assurance evidence for our
conclusion.
Our assurance engagement is aimed to obtain a limited
level of assurance to determine the plausibility of
sustainability information. The procedures vary in nature
and timing from, and are less in extent, than for a
reasonable assurance engagement. The level of
assurance obtained in a limited assurance engagement
is therefore substantially less than the assurance that is
obtained when a reasonable assurance engagement is
performed.
A further description of our responsibilities for the
assurance engagement on the sustainability statements
is included in the appendix of this assurance report. This
description forms part of our assurance report.
Amstelveen, 6 March 2025
KPMG Accountants N.V.
F.A.M. Croiset van Uchelen RA
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Appendix:
We apply the quality management requirements
pursuant to the Nadere voorschriften
kwaliteitsmanagement (NV KM, regulations for quality
management) and accordingly maintain a comprehensive
system of quality management including documented
policies and procedures regarding compliance with
ethical requirements, professional standards and
applicable legal and regulatory requirements.
Our limited assurance engagement included among
others:
a. Performing inquiries and an analysis of the external
environment and obtaining an understanding of
relevant sustainability themes and issues, the
characteristics of the company, its activities and the
value chain and its key intangible resources in order
to assess the double materiality assessment process
carried out by the company as the basis for the
sustainability statements and disclosure of all material
sustainability-related impacts, risks and opportunities
in accordance with the ESRS;
b. Obtaining through inquiries a general understanding
of the internal control environment, the company’s
processes for gathering and reporting entity-related
and value chain information, the information systems
and the company’s risk assessment process relevant
to the preparation of the sustainability statements and
for identifying the company’s activities, determining
eligible and aligned economic activities and prepare
the disclosures provided for in Article 8 of Regulation
(EU) 2020/852 (Taxonomy Regulation), without
obtaining assurance evidence about the
implementation, or testing the operating
effectiveness, of controls;
c. Assessing the double materiality assessment process
carried out by the company and identifying and
assessing areas of the sustainability statement,
including the disclosures provided for in Article 8 of
Regulation (EU) 2020/852 (Taxonomy Regulation)
where misleading or unbalanced information or
material misstatements, whether due to fraud or error,
are likely to arise (‘selected disclosures’). We
designed and performed further assurance
procedures aimed at assessing that the sustainability
statements are free from material misstatements
responsive to this risk analysis;
d. Considering whether the description of the double
materiality assessment process in the sustainability
statements made by Management Board is consistent
with the process carried out by the company;
e. Performing analytical review procedures on
quantitative information in the sustainability
statement, including consideration of data and trends
in the information submitted for consolidation at
corporate level;
f. Assessing whether the company’s methods for
developing estimates are appropriate and have been
consistently applied for selected disclosures. We
considered data and trends, however, our procedures
did not include testing the data on which the
estimates are based or separately developing our own
estimates against which to evaluate management’s
estimates;
g. Analysing, on a limited sample basis, relevant internal
and external documentation available to the company
(including publicly available information or information
from actors throughout its value chain) for selected
disclosures;
h. Reading the other information in the annual report to
identify material inconsistencies, if any, with the
sustainability statements and reconciling the relevant
financial information with the financial statements;
i.
Considering whether:
–
the disclosures provided to address the reporting
requirements provided for in Article 8 of Regulation
(EU) 2020/852 (Taxonomy Regulation)
–
for each of the environmental objectives reconcile
with the underlying records of the company and
are consistent or coherent with the sustainability
statement;
–
appear reasonable, in particular whether the
eligible economic activities meet the cumulative
conditions to qualify as aligned and whether the
technical screening criteria are met; and
–
the key performance indicators disclosures have
been defined and calculated in accordance with
the Taxonomy reference framework as defined in
Appendix 1 Glossary of Terms of the CEAOB
Guidelines on limited assurance on sustainability
reporting adopted on 30 September 2024 , and in
compliance with the reporting requirements
provided for in Article 8 of Regulation (EU)
2020/852 (Taxonomy Regulation), including the
format in which the activities are presented.
j.
Considering the overall presentation, structure and
the fundamental qualitative characteristics of
information (relevance and faithful representation:
complete, neutral and accurate) reported in the
sustainability statement, including the reporting
requirements provided for in Article 8 of Regulation
(EU) 2020/852 (Taxonomy Regulation); and
k. Considering, based on our limited assurance
procedures and evaluation of the assurance evidence
obtained, whether the sustainability statements as a
whole, is free from material misstatements and
prepared in accordance with the ESRS.
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31. Sustainability statements appendix
193
32. Additional sustainability information
203
33. Five-year non-financial table
208
34. Non-IFRS financial performance
measures
211
35. Five-year financial tables
212
36. Declarations
216
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Appendix
31. Sustainability statements appendix
31.1 Content and structure of the Sustainability statements
ESRS 2: General disclosures
BP-1
15.1 Company overview - Our sustainability statements.
BP-2
15.1 Company overview - Our sustainability statements.
GOV-1
15.2 Sustainability governance; DRs 21a, 21b, 21d, 21e are incorporated by reference to chapter 21. DRs 20a and 22a are
incorporated by reference in chapters 22 and 23. DRs 20c and 21c are incorporated by reference in chapter 24.
GOV-2
15.3 Stakeholder engagement - ASM stakeholder framework
GOV-3
15.2 Sustainability governance - Sustainability incentive schemes
GOV-4
15.2 Sustainability governance - Sustainability due diligence
GOV-5
15.2 Sustainability governance - Our sustainability reporting principles
SBM-1
15.1 Company overview. DRs 40a and 40e are incorporated by reference in chapter 4.1; DR 41 is incorporated by reference in
section 16.2; DR42a and 42b are incorporated by reference in section 8.1. DR42c is incorporated by reference in chapter 6.
SBM-2
15.3 Stakeholder engagement
SBM-3
15.4 Impacts, risks and opportunities at ASM - 2024 Results and continuous improvement; 16.1 Climate risks and opportunities
IRO-1
15.4 Impacts, risks and opportunities at ASM
MDR-M
15.1 General disclosures, MDR-M is incorporated by reference in section 31.2
MDR-P
15.1 General disclosures, MDR-P is incorporated by reference in section 31.4
ESRS E1: Climate change
SBM-3
16.1 Climate risks and opportunities
E1-1
16.2 Climate action approach and results - Climate Transition Plan. Disclosure requirement 14 is derived from Regulation (EU)
2021/1119, Article 2(1).
E1-2
16.2 Climate action approach and results - Our climate and net-zero policies
E1-3
16.2 Climate action - Climate Transition Plan, 16.3 Product sustainability; 16.4 Own operations; 16.5 Supply chain emissions
E1-4
16.2 Climate action approach and results - Net-zero target
E1-5
16.4 Own operations - Energy management and efficiency
E1-6
16.2 Climate action approach and results - Our 2024 greenhouse gas emission results
E1-9
16.1 Climate risks and opportunities; DR 68 is included in Note 5 and incorporated by reference
ESRS S1: Own workforce
S1-1
17.1 People practices - Our Global Employment Standards; 19.1 Corporate culture and ethics
S1-2
17.1 People practices - Engaging our people
S1-3
19.2 Ethics, Bribery, and Corruption - Speaking up
S1-4
17.1 People practices - Talent attraction and retention; Human rights due diligence; 17.2 Inclusion, Equity, and Diversity; 17.3
Skilled workforce; 17.4 Health, safety, and employee well-being
S1-5
17.1 People practices - Talent attraction and retention; 17.2 Inclusion, equity, and diversity - Equal pay and gender equity;
Diversity in perspectives; Age diversity; 17.3 Skilled workforce - Performance management and career development; 17.4 Health,
Safety, and employee well-being - Our 2024 performance
S1-6
17.2 Inclusion, equity, and diversity - Workforce demographics
S1-9
17.2 Inclusion, equity, and diversity - Equal pay and gender equity; Diversity in perspectives; Age diversity;
S1-10
17.2 Inclusion, equity, and diversity - Equal pay and gender equity
S1-13
17.3 Skilled workforce - Performance management and career development
S1-14
17.4 Health, Safety, and employee well-being - Our 2024 performance
S1-16
17.2 Inclusion, equity, and diversity - Equal pay and gender equity
S1-17
19.2 Ethics, bribery, and corruption - Speaking up; 2024 breaches or our code of conduct
ESRS S2: Workers in the value chain*
S2-1
18.1 Supply chain overview - Policies governing supply-chain risks; Supplier Code of Conduct and Human Rights policy statement
S2-2
18.2 Engaging our suppliers
S2-3
18.2 Engaging our suppliers - Grievance mechanisms and whistleblower protection
S2-4
18.3 Taking action
S2-5
18.2 Engaging our suppliers - Tracking effectiveness of our supplier engagement; 18.3 Taking action
ESRS G1: Business conduct*
G1-1
19.1 Corporate culture and ethics; DR 5b is incorporated by reference in chapter 24.
G1-3
19.2 Ethics, Bribery, and Corruption, 24. Supervisory Board report
G1-4
19.2 Ethics, Bribery, and Corruption
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31.2 Minimum disclosure requirements
for metrics (MDR-M)
This section presents the key performance indicators included in the 2024 Annual Report to track ASM's sustainability performance. These metrics encompass those aligned with the sustainability matters
identified in the 2024 double materiality assessment (DMA), as well as other relevant metrics (marked with an asterisk) that provide a broader understanding of ASM's sustainability performance. The
section is prepared in accordance with the European Sustainability Reporting Standards (ESRS), Minimum Disclosure Requirements – Metrics (MDR-M).
Environment
Scope 1 and 2 emissions
Scope 1 emissions
#16.2
kilotonnes CO2
equivalent (CO2e)
Direct greenhouse gas (GHG) emissions from sources owned or
controlled by the organization (e.g., on-site fuel combustion, company
vehicles).
ASM follows best-known methods, including the GHG Protocol (GHGP) and IPCC
Guidelines for GHG inventories, 2019 edition (IPCC 2019). Main direct emissions are
related to process gases, refrigerants, mobile and stationary combustion, natural gas,
and LPG. Calculated using emission factors from recognized sources and activity data
(e.g., fuel consumption, distance traveled).
In a few cases, where direct measurement is not available, estimations
and country-specific approximations are applied based on relevant
characteristics (e.g., office size, vehicle type or contractual maximum
values).
Energy consumption
[table] #16.4
Megawatt hours
(MWh)
The total energy consumption KPI is measured in absolute terms,
reflecting improvements in energy efficiency, exposure to coal, oil and
gas-related activities, and the share of biogenic and renewable energy
in the overall energy mix of ASM's own operations.
Energy consumption data for ASM sites is gathered from invoices, meters, contracts or
relevant databases, aiming for the highest data-quality available, while accounting for
differences in reporting units. It includes grid electricity, district heating, cooling, and
steam, electric vehicle (EV) charging, and on-site electricity generation.
Extrapolations are at times made for the last period of the reporting year
to accommodate timely reporting. The extrapolation factor is based on
assumptions stemming from historic results combined with known
factors that could influence the usage. For smaller locations, (e.g.,
shared sales offices) where source data may be limited, estimates are
made. These locations represent a non-material portion of our total
global operations.
Percentage renewable
electricity #16.4
Percentage
Rate of electricity consumed from renewable sources in ASM’s total
electricity consumption, demonstrating progress towards renewable
energy targets.
Proportion of total electricity consumption from bundled and unbundled renewable
sources.
Renewable electricity
from Energy Attribute
Certificates (EACs)
[table] #16.4
Percentage
Share of bundled renewable electricity is purchased from a specific
renewable energy source. In comparison, unbundled EACs are sold
independently from the physical electricity and can be acquired to
support renewable energy claims.
Proportion of bundled and unbundled electricity of the total renewable electricity
consumption. Bundled electricity reflects ASM's on-site electricity generation, while
unbundled electricity accounts for the global qualified EAC purchases against purchased
electricity.
Energy intensity #16.4
MWh/ million EUR
Energy consumed per million EUR of revenue for contextualizing energy
consumption.
Calculated dividing total energy consumption by total revenue for the reporting period
for all ASM operations.
Fluorinated GHG
emissions #32.4*
tonnes CO2e
These are emissions of fluorinated greenhouse gases (F-gases), which
are potent synthetic GHGs used in various applications, such as
refrigerants, air-conditioning, and industrial processes.
Emissions are calculated using activity data (e.g., refrigerant usage) and IPCC-based
emission factors for each F-gas.
Scope 2 emissions
(location-based) #16.2
kilotonnes CO2
equivalent (CO2e)
Scope 2 emissions are indirect emissions from sources that are not
owned and/or operationally controlled by ASM, considering energy
sources the organization is physically connected to, and the
corresponding emissions intensities of those source(s) in each
geography they are located.
Location-based emissions are calculated utilizing country and/or regional specific
emission factors that account for the electricity generation sources within each
respective region. These emission factors can be applied per unit energy (e.g., per kWh/
MWh) to determine the location-based tonnes CO2e from procured energy.
Assumptions and limitations inherent to the Energy Consumption Metric.
Scope 2 emissions
(market-based) #16.2
kilotonnes CO2
equivalent (CO2e)
Scope 2 emissions are indirect emissions from sources that are not
owned and/or operationally controlled by ASM, considering market-
based accounting of Energy Attribute Certificate (EAC) procurement,
which accounts for renewable energy generation and accounting of
source-to-sink usage of such energy.
Market-based GHG Scope 2 emissions are calculated by accounting for the global
qualified EAC purchases against purchased electricity. As part of our Scope 2 reporting
we account for procured energy in all its forms (grid electricity, district heating/cooling,
EV charging, generation) as well as associated environmental attributes of EACs for
market-based accounting.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
194
Scope 3 emissions - All metrics presented in this section align with the disclosures outlined in Chapter 16.2 of the Annual Report.
Scope 3 emissions
kilotonnes CO2
equivalent (CO2e)
Scope 3 emissions encompass all peripheral activities that occur in the
value chain, excluding those already included in Scope 2.
As part of comprehensive GHG accounting and calculation practices, ASM follows the
GHG Protocol, where GHG Scope 3 emissions are calculated by converting the relevant
activity data (e.g, spend, distance) to tonnes CO2e using emission factors.
While Scope 3 encompasses 15 categories, ASM has determined that
categories 10, 13, and 14 are not applicable to our business according to
the GHG Protocol.
Scope 3.1 Purchased
goods and services
kilotonnes CO2
equivalent (CO2e)
Emissions from the extraction, production, and transportation of
purchased goods and services.
ASM uses a spend-based methodology, aligning company financial tracking system
commodity codes with the EPA's GHG emission factor (NASCI) and recommended GHG
databases, excluding categories covered by other Scope 3 reporting. Inflation
adjustments ensure ongoing calculation accuracy.
The spend-based approach may not fully capture the impact of
supplier-specific greenhouse gas (GHG)-reduction initiatives,
methodologies and parameters are reviewed annually to incorporate the
latest insights.
Scope 3.2 Capital
goods
kilotonnes CO2
equivalent (CO2e)
Emissions from the extraction, production, and transportation of capital
goods purchased by the company.
The spend-based method estimates emissions by multiplying the financial expenditure
on capital goods (e.g., machinery, equipment, buildings) by relevant emission factors.
Average emission factors may not capture the variability in emissions
across different production processes for specific capital goods.
Scope 3.3 Fuel &
energy related
kilotonnes CO2
equivalent (CO2e)
Emissions related to the extraction, production, and transportation of
fuels and energy purchased and consumed by the reporting company
(not already included in Scope 1 or Scope 2).
The fuel- and energy-based method estimates emissions by multiplying the quantity of
fuel and energy consumed by the respective emission factors).
Emission estimates are based on average factors and may not capture
variations in actual operating conditions.
Scope 3.4 Upstream
transportation &
distribution
kilotonnes CO2
equivalent (CO2e)
Emissions from the transportation and distribution of purchased goods
(inbound logistics) in vehicles and facilities not owned or controlled by
the reporting company.
Emissions are calculated based on detailed emission report of logistics partners. For
suppliers where a carbon footprint report including GHG protocol standards is not yet
available, ASM calculates the emissions based on distance, shipping weight, and
method.
Average transportation emission factors may not fully account for
shipment-specific conditions such as vessel type, cargo weight and
density, and weather conditions.
Scope 3.5 Waste
kilotonnes CO2
equivalent (CO2e)
Emissions from the disposal and treatment of waste generated in the
reporting company’s operations.
The waste-type specific method estimates emissions by categorizing waste generated
into different types (e.g., paper, plastic, electronic, organic) and applying specific
emission factors to each waste type based on its treatment method (e.g., landfill,
incineration, recycling).
The waste-type specific method may not fully account for complexities
in waste management, including waste-stream mixing, evolving
treatment technologies, and potential for unintended emissions.
Scope 3.6 Business
travel
kilotonnes CO2
equivalent (CO2e)
Emissions from the transportation of employees for business-related
activities in vehicles not owned or operated by the reporting company.1
The fuel-based method calculates emissions based on the amount of fuel consumed
(e.g., gasoline, jet fuel) for business travel. The distance-based method calculates
emissions based on the distance traveled and the mode of transport (e.g., car, plane,
train).
Variability in vehicle type, driving conditions, and maintenance can lead
to actual emissions that differ from those estimated using average fuel-
specific factors.
Scope 3.7
Commuting / WFH
kilotonnes CO2
equivalent (CO2e)
Emissions from the transportation of employees between their homes
and their regular places of work.
The distance-based method calculates emissions based on the distance traveled by
employees between their homes and their workplaces. Emission factors are applied
based on the mode of transportation (e.g., car, public transport, cycling).
Distance-based commuting emissions may not accurately reflect actual
emissions due to variations in vehicle type, occupancy, driving habits,
and routes.
Scope 3.8 Leased
facilities (upstream
leased assets)
kilotonnes CO2
equivalent (CO2e)
Emissions from the operation of assets leased by the reporting company
and not included in Scope 1 and Scope 2.
Emissions are estimated based on the energy consumption of these assets, using
relevant emission factors, based on owner reports.
Where direct energy consumption data from landlords is unavailable,
estimated emissions are calculated based on asset type, country
averages, and building space. This approach can lead to potential
inaccuracies due to variations in building characteristics, energy
efficiency, and local energy grids.
Scope 3.9
Downstream
transportation &
distribution
kilotonnes CO2
equivalent (CO2e)
Emissions from the transportation and distribution of sold products
(outbound logistics) in vehicles and facilities not owned or controlled by
the reporting company.
Emissions are calculated based on detailed emission report of logistics partners. For
suppliers where a carbon footprint report including GHG protocol standards is not yet
available, ASM calculates the emissions based on distance, shipping weight, and
method.
Average transportation emission factors may not fully account for
shipment-specific conditions such as vessel type, cargo weight and
density, and weather conditions.
Scope 3.11 Use of
sold products
kilotonnes CO2
equivalent (CO2e)
Emissions from the use of goods and services sold by the reporting
company.
Scope 3.11 use of sold products is calculated using a process-based method, evaluating
the energy consumption over the lifetime of our machines installed at our customers’
fabs during the reporting year. The use cases are selected by product sustainability
experts, where independent tests aligned with the SEMI S23-1021E standard determine
the energy usage, expressed in MWh.
Lifetime emissions are calculated at the point of sale, based on location-
specific emission factors and assuming an average operational lifespan
of 15 years. This assumed lifespan is derived from peer analysis, expert
input, and internal analysis of service records, and may vary on a case-
by-case basis.
Scope 3.12 End-of-life
treatment of sold
products
kilotonnes CO2
equivalent (CO2e)
Emissions from the waste disposal and treatment of products sold by
the reporting company at the end of their life.
The waste-type specific method estimates emissions by categorizing waste generated
into different types (e.g., paper, plastic, electronic, organic) and applying specific
emission factors to each waste type based on its treatment method (e.g., landfill,
incineration, recycling).
The waste-type specific method may not fully account for complexities
in waste management, including waste-stream mixing, evolving
treatment technologies, and potential for unintended emissions.
Scope 3.15
Investments
kilotonnes CO2
equivalent (CO2e)
Emissions associated with investments in companies or projects.
Portfolio-weighted method based on the proportional ownership stake and emissions
data from investee companies.
Due to the timing of ASMPT's annual report release, data is estimated
based on the prior year's reported figures.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
195
The metrics below measure supply chain transparency and engagement related to environmental performance.
% of critical/strategic
Suppliers reporting
Scope 1 & 2 emissions
#16.5
Percentage
The percentage of ASM's critical or strategic suppliers that publicly
disclose their Scope 1 and Scope 2 GHG emissions.
This involves identifying the company's critical/strategic suppliers (based on spend, risk,
or other criteria) and then determining whether these suppliers publicly report their
Scope 1 and 2 emissions data (e.g., through sustainability reports, CDP disclosures).
% of critical/strategic
suppliers with GHG
reduction targets
#16.5
Percentage
The percentage of ASM's critical or strategic suppliers that have set
science-based GHG-reduction targets aligned with a 1.5°C warming
scenario by 2030, as validated by the Science Based Targets initiative
(SBTI).
Identification of critical/strategic suppliers with publicly committed to SBTI-validated
targets.
Avoided supply chain
emissions from
material savings
#16.5*
kilotonnes CO2
equivalent (CO2e)
The weight of avoided GHG emissions per year through Complete Kit
Management (CKM) reducing the necessity for new materials through
systematic repair, refurbishment, and reuse.
Emissions reduction is calculated by combining refurbished part counts with raw material
weights (sourced from system records, specification sheets, or volume/density) and raw
material processing emission factors.
Due to estimated raw material weights and generic emission factors, the
resulting CO2 reductions are indicative of trends and may differ from
actual values.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Water*
Water Withdrawn
Absolute #32.1
cubic meters (m3)
The total volume of water withdrawn from all sources (surface water,
groundwater, municipal water supply, etc.)
Measured using water meters, invoices from water utilities, or estimations based on
water-usage patterns and equipment specifications.
Extrapolations are at times made for the last period of the reporting year
to accommodate timely reporting. The extrapolation factor is based on
assumptions stemming from historic results combined with known
factors that could influence the usage. For smaller locations, (e.g.,
shared sales offices) where source data may be limited, estimates are
made. These locations represent a non-material portion of our total
global operations.
Water intake per
revenue (water
intensity) #32.1
cubic meters (m3)
per million EUR
The volume of water withdrawn per unit of revenue generated. This
metric provides a measure of the organization's water-use efficiency
relative to its economic output.
Water withdrawal figure, which is the same as the water intake figure, divided by net
revenue to obtain a water intensity figure.
Water withdrawn from
water-stressed
regions #32.1, 35
cubic meters (m3)
The percentage of water withdrawn from high or extremely high water-
stressed regions as per the most recent information from the World
Resource Institute (WRI) Aqueduct analysis.
This metric is defined by WRI as the ratio of total water withdrawals to the available
renewable surface and groundwater supplies.
The Aqueduct analysis may not fully capture the specific water-stress
levels at the exact location of water withdrawal, due to the spatial
resolution of the data and the potential for localized variations in water
availability and demand.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Environmental releases*
Significant chemical
spills or releases to
the environment
#32.2
# of incidents
Releases directly to the environment that are unanticipated and meeting
a material threshold for reporting per the jurisdiction of release.
Based on records of all chemical spills and releases, including the type and quantity of
chemicals released, the location of the release, and the impacts on the environment.
The assessment significance is based on environmental impacts, as
determined through expert judgment and scientific analysis, and
includes violations with significant fines or penalties (greater than
US$10,000).
Hazardous waste
#32.3
metric tonnes
Waste materials that pose substantial or potential threats to public
health or the environment. These are defined by national or regional
regulations based on characteristics such as ignitability, corrosivity,
reactivity, or toxicity.
Measured through weighing or using certified waste-management company records.
Waste is classified according to applicable regulations (e.g., EU Waste Framework
Directive, US Resource Conservation and Recovery Act (RCRA)).
Variations in waste composition can affect the accuracy of emissions
calculations associated with waste treatment.
Liquid chemical waste
#32.3
cubic meters (m3)
Liquid waste containing chemical substances that may be hazardous or
require specific treatment before disposal.
Measured using flow meters, volume calculations based on container size, or waste-
disposal records from certified waste management companies. Chemical composition is
documented where relevant.
Variations in chemical composition can affect treatment requirements
and associated environmental impacts.
Volatile Organic
Compounds (VOCs)
#32.5
metric tonnes
Organic chemical compounds that have high vapor pressures at
ordinary room temperature. Many VOCs are hazardous air pollutants
and contribute to the formation of ground-level ozone.
Measured using direct monitoring equipment (e.g., gas chromatography), emission
factors based on production processes or solvent usage, or mass balance calculations.
Emission factors may not always be representative of specific
operations.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
196
Reuse/recycle rate
(ASM operations)
#32.2
Percentage
Percentage of total non-hazardous solid waste from ASM operations
that is reused or recycled.
Measured by tracking the quantity (e.g., weight or number of units) of waste collected
for reuse. The total non-hazardous solid waste generated by ASM operations is used as
the denominator.
Accuracy based on internal tracking systems, collaboration with
customers on return programs, and partnerships with third-party
collection and reuse organizations.
Waste to landfill rate
(ASM operations)
#32.2
Percentage
Percentage of total non-hazardous solid waste from ASM operations
that is sent to landfill for disposal.
Measured by tracking the quantity (e.g., weight) of non-hazardous solid waste sent to
landfill for disposal. The total non-hazardous solid waste generated by ASM operations
is used as the denominator.
Waste incinerated
with/ without energy
recovery
metric tonnes
The quantity of waste incinerated, categorized by whether the heat
generated during combustion is recovered for energy production (with
energy recovery) or not (without energy recovery).
Waste incineration data is gathered from waste-management facilities, differentiating
between facilities with and without energy recovery systems (e.g., boilers, turbines) for
waste with sufficient heat content.
Incomplete reporting on energy recovery by some facilities may lead to
underestimation of waste incinerated with energy recovery.
Waste disposal
avoided through our
reusable packaging
program #32.2
metric tonnes
This table presents the quantity of packaging waste avoided through
ASM's reusable crating program, which aims to reduce reliance on
single-use wood crates in the shipping and movement of production
materials, final products, and spares.
Calculated by determining the weight or volume of materials returned to customers
through the ASM program that would have otherwise been disposed of.
Actual landfill waste avoidance may differ from calculated amounts due
to variations in lifecycle assessment assumptions (return rates,
refurbishment, amortization) and program performance.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Our people. The listed metrics support the information presented in sections 17.1 - 17.3 of this report
CEO pay ratio
Ratio
The ratio of the CEO's annual total compensation to the median annual
total compensation of all other employees.
CEO remuneration divided by the median remuneration of all employees excluding the
highest-paid individual.
The pay ratio assessment was done against ASM's current CEO's
remuneration, H. M'Saad. The 'other items' offered to G.L. Loh were not
considered for the assessment, making the remuneration offered to H.
M'saad that of the highest paid individual.
Gender pay ratio
Ratio
Gender-based pay ratio, calculated using headcount and adjusted for
purchasing power differences between countries, with disclosure of
both average and median values.
The gender pay gap is calculated using both average and median pay levels. For each
calculation, the difference between female and male pay is expressed as a percentage
of the male pay level. Data is sourced from the ASM HR system on the last day of the
reporting period.
Gender diversity
Percentage
Total number of employees (in headcount) on the last day of the
reporting period by gender in percentages.
Employee headcount as of the last day of the reporting period is categorized by gender
within predefined categories (e.g., grade). The percentage of employees in each gender
category is then calculated. Data is extracted from the HR system.
Voluntary and total
attrition rate [table]
Percentage
Employee attrition rate, including the percentage of total employee
departures, as well as separate percentages for voluntary (employee-
initiated) and involuntary (employer-initiated) departures, during the
reporting year.
Number of people who have left the company voluntarily and involuntarily during the
reporting year divided by the number of employees at the end of the reporting year (in
percentages).
Employee age bracket
statistics
Percentage
The distribution of employees across different age groups.
The share of employees in each age group at the end of the reporting period. The age
groups are under 30, 30-50, and over 50.
Training hours per
gender [table]
Hours
The average number of training hours completed by male and female
employees. Additional break down provided as average and technical
training.
Training hours per employee are calculated based on data from ASM's internal training
system. This includes the duration of assigned training courses and records of employee
completion. Employee gender data is sourced from the ASM HR system.
The assigned duration of training courses may not accurately reflect the
actual duration of sessions attended by employees.
Working hours
compliance according
to RBA standards
Qualitative score
Compliance assessment based on the RBA (Responsible Business
Alliance) Code of Conduct standards on working hours (including
overtime limits).
Employee working hours records assessed according to the RBA standards.
The KPI is limited to workers as per the definition of the RBA: direct and
indirectly hired workers subject to hourly increases or decreases due to
volume production and/or covered by local laws governing overtime.
% of employees
participated in regular
performance and
career development
reviews
Percentage
The percentage of employees who took part in regular performance and
career-development reviews during the reporting period.
Completion of performance reviews is logged within ASM's internal performance
management system. Individual employee completion records are subsequently
extracted and aggregated as part of the metric calculation.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
197
Health and safety. The listed metrics support the information presented in section 17.4 of this report
Number of fatalities
related to work-
related injuries and
work-related ill health
Number
Number of employee deaths resulting from work-related incidents or
work-related ill health.
ASM uses the US OSHA (Occupational Safety and Health Administration) recordkeeping
criteria. These criteria include fatalities, loss of consciousness, days away from work,
restricted work or job transfer, medical treatment beyond first aid, diagnosed cases of
cancer, chronic irreversible diseases, fractured or cracked bones or teeth, punctured
eardrums, and specific criteria for needlestick/sharp injuries, medical removal, hearing
loss, and tuberculosis. Records are based on incident reports and medical
documentation.
Our incident reporting platform, trainings and governance ensures the correct recording,
classification and follow up of the relevant cases.
Recordable work-
related injuries and
work-related ill health
Number
Total number of recordable injuries and illnesses reported separately.
Recordable work-
related injury rate
Number per 100
FTE
The number of recordable injuries and illnesses as compared to the
average number of 100 FTE during the reporting year. This metric
normalizes injury data for variations in workforce size.
Injury rate
Number per 100
FTE
The total number of work-related injuries and illnesses (both recordable
and first-aid) as compared to the average number of 100 FTE during the
reporting year.
Lost workday injury
rate
Number per 100
FTE
The total number of lost time recordable-injury cases as compared to
the average number of 100 FTE. If an injury case has lost time, that
automatically makes it recordable.
Days lost from work-
related injuries and ill
health and related
fatalities.
Number of days
Total number of days lost due to lost-time cases of work-related injury,
ill health, and fatalities.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Supply chain responsibility. The listed metrics support the information presented in chapter 18 of this report.
RBA Code of Conduct
Acknowledgement
Percentage
Percentage of critical and/or strategic suppliers acknowledging the RBA
Code of Conduct.
Number of signed acknowledgments or other forms of formal commitment from suppliers
regarding the RBA Code of Conduct.
RBA Code of Conduct
self-assessment
questionnaire (SAQ)
Percentage
Percentage of critical and/or strategic suppliers who completed a
required RBA SAQ.
Critical and strategic suppliers are identified at the beginning of each year. These
suppliers are then requested to complete the RBA Self-Assessment Questionnaire (SAQ)
for their relevant facilities within the RBA online platform. Facility IDs are mapped to ASM
supplier codes, and the year-end status of each SAQ submission linked accordingly.
Supplier sites with
reported incidents of
involuntary labor
Number
The number of supplier sites with incidents of involuntary labor
identified.
Data is based on facility Self-Assessment Questionnaires (SAQs) submitted through the
RBA online platform by critical and strategic suppliers. The scope includes selected on-
site Tier 1 suppliers, where on-site due-diligence assessments have been conducted.
Findings from these on-site assessments are incorporated into the KPI.
Supplier sites
reporting work-related
serious injuries and
fatalities
Number
The number of supplier sites reporting work-related serious injuries and
fatalities.
Supplier sites with
reporting incidents of
egregious working
hours or insufficient
days of rest
Number
The number of supplier sites reporting incidents of egregious working
hours or insufficient days of rest (in violation of labor standards) have
been identified.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
198
Supplier/Supplier
worker issues
identified and
dispositioned through
ASM grievance
process
Number
The number of issues raised by suppliers or supplier workers and
resolved through the ASM grievance mechanism (SpeakUp!, or other
channels) as presented in Chapter 19.
The number of grievances received through the grievance process described under the
Ethics section.
Supplier workers that
have been through an
RBA on-site audit
Number
The total number of supplier workers at facilities that have undergone
an RBA on-site audit (or other equivalent social audit).
The number of workers at audited facilities is based on records submitted through the
RBA online platform or collected by the Supply Chain Sustainability team.
Suppliers participation
in the Responsible
Factory Initiative (RFI)
program
Number
Number of direct suppliers participating in RFI.
The number of suppliers participating in the RFI program, as recorded in the relevant
system.
CMRT (Conflict
Minerals Reporting
Template) Completion
Percentage
Percentage of critical and/or strategic suppliers that have submitted
compliant CMRT responses.
Critical and strategic suppliers are requested to submit their CMRTs through the
designated system. Supplier information is mapped to ASM supplier codes for data
tracking and analysis.
The data reflects CMRT submissions from critical and strategic suppliers
identified in the previous year, as the CMRT cycle typically commences
mid-year. This may not fully capture the performance of all critical and
strategic suppliers active during the current reporting year, given that
the list of critical and strategic suppliers may be updated annually.
YoY change in % of
suppliers with high-
risk smelters or
refineries (SORs)
Percentage point
(p.p.)
The change from the previous year in the percentage of suppliers
identified as having high-risk smelters or refineries (SORs) in their
supply chain.
Year-on-year change of in-scope suppliers identifying 'high-risk' SORs in ASM's supply
chain. The CMRT survey cycle is a reporting process based on prior-year sourcing
activities related to critical and strategic suppliers.
Due to the mid-year to mid-year survey cycle, the data used to identify
critical and strategic suppliers reflects a one-year delay. Therefore, the
supplier list from the previous year is used for scoping.
Supplier attendees
that joined ASM's
sustainability training
sessions
Number
The number of supplier representatives who attended ASM's
sustainability training sessions.
Data is based on training records and attendance lists collected by the supply chain
sustainability team.
Webinars hosted for
suppliers in which
sustainability best
practices are shared
Number
The number of webinars hosted by ASM for its suppliers on
sustainability best practices.
% of commodity
managers trained on
sustainability
Percentage
The percentage of commodity managers who have completed
sustainability training.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Business conduct. The listed metrics support the information presented in chapter 19 of this report.
Ethics training, e.g.
Anti-Corruption and
Bribery training
Percentage
Percentage of the total number of employees, as of the end of the
reporting year, that completed the required ethics trainings, including
Anti-Corruption and Bribery training.
Ethics training and Anti-Corruption and Bribery training completion rate is calculated as
the percentage of internal active employees, new college graduates, expat employees,
and managed contractors who completed all required ethics trainings during the
reporting year, as tracked in the company's learning management system.
Reported confidential
concerns via
SpeakUp! or other
channels [table]
Count
Count of events reported via SpeakUp!, the globally available
anonymous reporting channel or other channels to report ethical or
whistleblower concerns. The scope is ASM worldwide, including other
stakeholders with a valid business interest (for example, suppliers,
contractors, seconded personnel).
Reported confidential concerns are managed by the Ethics Committee. Data is collected
from all available channels, including the anonymous SpeakUp! hotline and direct
outreach to Ethics Committee members. Cases are reviewed by the Ethics Committee to
ensure data accuracy and to avoid double-counting of similar or identical issues.
To maintain data consistency across reporting periods, confidential
concerns reported through various channels in prior years have been
consolidated with current data from the SpeakUp! system.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
199
Code of Business
Conduct (COBC)
confirmed cases of
non-compliance
Count
Count of COBC confirmed cases of non-compliance.
Reported confidential concerns are reviewed and categorized by the Ethics Committee,
and those associated with violations of the Code of Business Conduct (COBC) are
counted for this metric.
RBA self-assessment
rating
Rating
The rating obtained by the organization through a self-assessment
questionnaire (SAQ) based on the Responsible Business Alliance (RBA)
Code of Conduct. The RBA Code sets standards for social,
environmental, and ethical responsibilities in global supply chains.
The RBA self-assessment rating is determined through a comprehensive self-
assessment conducted by ASM based on the Responsible Business Alliance (RBA) Code
of Conduct. The self-assessment utilizes the RBA Self-Assessment Questionnaire (SAQ)
and adheres to the RBA's guidelines and scoring methodology.
Metric name
Unit of measure
Definition
Methodology
Assumptions and limitations
Introduction
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Leadership and governance
Financial statements
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200
31.3 Restatements of historic figures
As part of our commitment to continuous
improvement in reporting, we have revised
several historic sustainability results in the 2024
Annual Report. We also restated 2023 figures in
our EU Taxonomy disclosures due to a found
error. The updates incorporate enhanced
methodologies and the latest available data to
ensure comparability across reporting periods.
Energy and Scope 1&2 KPIs
The 2023 Energy and Scope 1&2 KPI data has been
restated to incorporate actual invoice data received
subsequent to the initial reporting period. Additionally,
calendarization was adopted for enhanced allocation of
energy consumption to specific reporting periods. To
offset increased consumption, supplemental energy
attribute certificates (EACs) were procured, and these
are reflected in the updated 2023 figures detailed in
Chapter 33.
Scope 3 metrics
Consistent with the GHG Protocol, we have re-baselined
our Scope 3 metrics using the latest available
methodologies. The most significant change resulted
from updates to the ASM product energy consumption
database, which directly enhanced the accuracy of our
Category 3.11 (Use of Sold Products) emissions
calculation.
A further significant change impacted Category 3.1
(Purchased Goods and Services), where we transitioned
to a new emission factor database as part of our
implementation of a new environmental database platform
to improve reporting efficiency and maintain consistency
of application of emission factor across geographies.
The changes in reported GHG values described above
are summarized as follows.
Restatement GHG values
Old value
New value
Electrical Consumption
2023 (MWh)*
74,432
76,371
Energy intensity 2023
(MWh/million EUR)
33
33.8
Scope 1 2023 (ktCO2e)
2.5
2.4
Scope 2 (location-based)
2023 (ktCO2e)
32.3
32.8
Scope 3.1 2021 (ktCO2e)
402.2
311
Scope 3.11 2021 (ktCO2e)
1,354.6
1,321.1
*For restated 2023 values of the energy sources, please refer to
section 16.4, Table: Energy Consumption and Mix.
Avoided GHG emissions through CKM materials
savings (tonnes CO2e)
Prior year GHG avoidance values have been updated to
reflect additional data received after the original
reporting period. These have increased the total GHG
avoidance value for prior years, fully covering the
positive impact of ASM's refurbishment program.
The changes in reported GHG avoidance from the CKM
refurbishment program values are summarized as
follows.
Restatement GHG avoidance from CKM (mtCO2e)
Old value
New value
2020
36
81
2021
775
916
2022
1,620
1,807
2023
1,650
2,127
Supply chain-related metrics
To ensure consistency, the scope of prior years' supply
chain metrics has been adjusted to align with the 2024
criteria for identifying relevant suppliers.
The changes in values reported in the 2023 Annual
Report for the year 2023 are summarized as follows.
Restatement supplier spend 2023
Old Value
New Value
Total direct supplier spend by region
Asia
68 %
74 %
North America
23 %
19 %
Europe
9 %
7 %
Conflict minerals
Total # of surveyed
suppliers
84
70
# of suppliers with high
risk SORs reported
27
24
Water KPIs
As part of ASM's continuous improvement of reported
metrics, ASM has updated its estimation factors for site
water usage where the actual utility consumption data is
unavailable.
The changes in water withdrawal reported values are
summarized as follows.
Restatement water withdrawal (m3)
Old value
New value
2020
121,000
140,506
2021
198,000
175,774
2022
194,000
168,517
2023
252,000
221,406
Waste-related metrics
ASM has updated its reported waste to landfill values, as
we gained new insights that enable us to distinguish
waste handling methods in more detail, specifically
measuring the amount of our non-hazardous waste that
was incinerated.
The changes in waste to landfill reported values are
summarized as follows.
Restatement waste to landfill (metric tons)
Old value
New value
2020
156
56
2021
362
97
2022
441
101
2023
420
92
EU Taxonomy KPIs
In 2024, ASM updated its methodology for assessing
expenditure KPIs under the EU Taxonomy. The more
refined data inputs have led to reevaluated numerators
and denominators for both capex and opex. For more
details refer to chapter 20 of this Annual Report.
The changes are summarized as follows.
Restatement proportion of capex, opex (mln. Eur)
Old value
New value
Capex
83 / 215
314 / 336
Opex
45 / 47
274 / 274
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Financial statements
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31.4 Minimum Disclosure Requirements
for Policies
This section presents key policies relevant to ASM's sustainability performance. These policies
provide a broader understanding of ASM's sustainability governance and are categorized by their
scope and ownership within ASM.
Policy
Owner within ASM
Scope
Relevant section in the
Annual Report
Stakeholder dialogue policy
Management Board
ASM Global
15.3
Climate and Net Zero policy statement
VP Sustainability
ASM Global
16.2
Global Occupational Health and Safety
policy statement
VP Sustainability
ASM Global
17.4
ASM Supplier Code of Conduct
VP Global Supply Chain
Direct and indirect suppliers
18.1
Responsible Minerals policy statement
VP Sustainability
ASM Global
18.1
Human Rights policy
VP Sustainability
ASM Global
17.1, 18.1
Global employment standards
Head of People, Europe
ASM Global
17.1
Diversity, Equity & Inclusion policy
Management Board
ASM Global
17.2, 21
Anti-Fraud policy
Ethics Committee
ASM Global
19.1, 21
Policy On Anti-Corruption
Ethics Committee
ASM Global
19.1, 21
SpeakUp! procedure
Ethics Committee
ASM Global
19.1, 21
Code of Business Conduct
Ethics Committee
ASM Global
19.1, 21
Remuneration policy Management Board
Supervisory Board
Management Board
15.1, 21
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32. Additional sustainability information
In this section, we detail ASM's approach to
environmental, social, and governance
stewardship in relation to various topics not
subject to the Corporate Sustainability Reporting
Directive (CSRD) as these topics did not meet
our double materiality thresholds. ASM's overall
sustainability program is broad, encompassing
many interrelated but distinct topics. Certain
topics have reached critical levels of importance
within our company and are being prioritized
accordingly. We also recognize that other
sustainability topics are often interconnected,
despite not reaching the same critical levels of
impact. This section of the report offers a more
holistic overview to our environmental, social,
and governance sustainability efforts, to provide
a complete account of activities undertaken.
ASM has been globally certified to the ISO 14001
Environmental Management System (EMS) standard
since 2003. The scope of a global EMS supports
consistency in practice across our operations, and
provides a foundation for continuous improvement.
The EMS ensures the organization is appropriately
evaluating and managing environmental aspects related
to our business. Our certification was last refreshed in
Q4 2024.
Our EMS provides a framework to be compliant with all
applicable environmental laws and regulations with a
goal of no Notices of Violation (NOVs), and we maintain
an environmental legal register to assess regulatory
applicability annually at a minimum.
In 2024, we did not sustain any environmental-related
violations with significant (> US$10,000) fines or
penalties.
32.1 Water efficiency and quality
ASM published its dedicated water policy in 2023. This
policy sets out how we collaborate and engage in water
security, align to recognized water stewardship
standards, and set targets to measure our progress. In
2024, ASM continued implementation of our water
policy, prioritizing key facilities for water efficiency and
reclaim and recycling improvements based on water
intensity and water stress.
ASM ensures full compliance with water-effluent quality
within regulatory control parameters, adhering strictly to
regulatory discharge limits and permit conditions. We
actively take steps to ensure our discharges meet local
quality requirements, enabling adequate treatment
before returning to natural ecosystems. In some regions,
ASM pre-treats effluents before discharging to a publicly
owned treatment works (POTW) facility, following
stringent quality protocols to prevent disruptions to
downstream treatment processes, infrastructure issues,
worker safety risks, or adverse effects on receiving
water bodies. In other regions where the municipality
does not directly accept industrial wastewater, we
collect and transport wastewater offsite for appropriate
treatment and management. Across all scenarios, we
ensure that there are no leaks or unintended releases
within our wastewater collection system, safeguarding
the surrounding environment.
ASM does not make use of ultra pure water (UPW) in any
of its operations. ASM’s water objective for the period
2021-2025 is to maintain or reduce our normalized water
withdrawal intensity at or below our 2020 level of 91 m³/
€ million revenue. This target applies across all
operations, and we aim to achieve it by leveraging
reduction, reuse, or restoration methods. In 2024, our
normalized water withdrawal per revenue was 76m³/€
million revenue.
Our four primary research and development centers in
South Korea, Japan, Phoenix (U.S.), and Catania, Italy,
accounted for 63% of our water consumption in 2024.
This water is mainly used for cooling and abatement
processes related to our equipment operations.
Previously, we identified our Phoenix site as having a
potential climate-related water risk, considering regional
water scarcity, site usage, and overall supply versus
demand challenges. Since 2019, we have been operating
a wastewater treatment and reclaim and recycling
system, which has saved an estimated 225,200 m³ of
water annually, including in 2024. In 2024, we realized
an upgrade to our cooling tower auto-controller which
saves an additional 2,000 m³ per year. In addition, we
realized upgrades to our waste water treatment system
in Catania, enabling additional reclaim at that site.
ASM is planning additional water management
improvements in 2025, including a cooling tower
automation in our R&D facility in Hwaseong, Korea, and
implementing enhanced metering at key facilities. These
steps are part of our ongoing effort to optimize water
use efficiency and advance our stewardship goals.
Water withdrawals
141
176
169
221
224
106
102
70
84
76
Water withdrawn absolute (m3)
Water intensity (Cubic meters/million € revenue)
2020
2021
2022
2023
2024
—
100
200
300
—
100
200
300
32.2 Circularity and waste
ASM published its first waste reduction and circularity
policy in 2023, focusing on minimizing resource use,
optimizing raw material use, transitioning to a circular
economy, and reducing waste-related risks. In 2024,
ASM expanded its current waste-reduction programs,
seeking new opportunities to optimize raw materials
usage through reuse, recycling, and resource reductions.
Minimizing resource use is the most impactful part of our
waste reduction strategy. By reducing consumption, we
lower emissions, water use, pollution, and resource
depletion, supporting also our Net Zero by 2035 target.
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Product refurbishment
ASM recognizes the value of refurbishing durable parts
to extend their life. Through our Complete Kit
Management (CKM) program, we are expanding in-
house capabilities to refurbish more components than
before. In 2024, our refurbishment initiatives extended
the useful life of numerous tool parts, reducing waste,
and providing sustainable options for our customers.
Reusable crates to avoid packaging waste
Shipping and movement of production materials, final
products, and spares are major sources of waste in
ASM's global value chain. Historically, our packaging has
relied on one-time-use wood crating, which may be
recycled or disposed of depending on the region. In
2024, ASM continued its action plans to expand the
reuse crating program, partnering globally to
disassemble, refurbish, and return crates for reuse. We
aim to expand our reusable crates approach to all tools
and tool-sets in the future. In 2024, our reusable crates
initiative avoided 539 tonnes of landfill disposal.
Our percentage coverage of downstream customer
reuse crating decreased from 9% to 8% in 2024,
representing our reuse achievement compared to the
total potential for this category. We expect the
percentage in 2025 to increase as more reusable crates
were shipped, which we expect to see returned in the
periods to come.
Waste avoidance values for 2024 are presented below
by program area:
Reusable
packaging
program
Description
Tonnes of
waste
disposal
avoided
ASM to
customer
Product and supporting
equipment sales to
customers
144.4
ASM to supplier
Parts an sub-assemblies
shipped between ASM
and suppliers as part of
the production process
0.98
ASM to contract
manufacturer
Assembled equipment and
sub-assemblies
393.9
According to a comprehensive Life Cycle Assessment
(LCA) that spans across our entire product portfolio, our
reusable crates significantly outperform single-use
crates in all analyzed indicators, including human health,
ecosystems, resources, global warming, cumulative
energy demand, and water scarcity. Key results,
measured over the lifetime of a reusable crate, include:
• A 68% reduction in CO2 emissions
• 55% in materials savings
• 94% decrease in water usage
The full LCA results are available on request.
Waste management at our sites
In 2024, we achieved 82% of our non-hazardous waste
to be recycled or reused, which is the same as in 2023.
Our 2025 target is to grow this percentage to 90%.
Previously, our target focused on landfill avoidance.
Clarifying this goal to recycling and reuse is helping us
refocus our priorities to not only avoid landfill, but pursue
more positive circular material dispositions. Part of our
efforts to further grow recycling and reuse has been to
train specific functions into effective waste management
methods. This resulted in five waste management
workshops given globally, amongst others to our site
EHS leaders and local facilities departments. Our main
manufacturing location in Singapore received a deep-
dive assessment to spot improvement opportunities.
32.3 Chemical waste management
ASM is focused on managing its chemical and hazardous
waste responsibly. As an R&D and engineering company,
we are constantly evaluating new processes at our
engineering sites. We have robust controls to make sure
all chemicals and gases are handled properly from
'cradle to grave' or 'cradle to cradle'.
The controls include:
a. Chemical approval process – A strict chemical request
and approval process that engages experts from
across the organization for all new chemicals, gases,
and change of use requests. Experts involved in the
process at all sites include EHS, product safety,
facilities, and the requesting process R&D team. The
process evaluates the request for legal compliance,
health and safety, and environmental management –
including proper effluent and abatement, and, if
required, waste disposal.
b. Physical controls – Once in use, we use leading
technology and controls to monitor for leak detection,
exposure controls, emission controls for gas
abatement and wastewater treatment, and robust
storage rooms and secondary containment to prevent
release to the environment should there be a leak.
c. Emissions and hazardous-waste management – This
involves chemical or other hazardous content
materials that must be properly managed. Our
controls help minimize the risk of unabated emissions
to air or water-treatment systems. When chemicals
are not managed as part of process exhaust or by-
products, they are properly collected and stored for
potentially hazardous waste disposal. All chemical
waste is properly characterized and managed,
according to local regulations and capabilities. The
regions in which waste is generated at ASM are
covered by the Basel Convention definition of waste,
and properly managed – in some cases as hazardous
waste, and our goal is to have zero hazardous waste
to landfill where landfill is not the best known method
for disposal. ASM first focuses on minimizing
hazardous waste. For example, our Phoenix, Arizona,
site has been a very small quantity generator (VSQG)
for several years. This is the lowest classification of
hazardous waste generation status in the United
States.
d. Industry associations – We are engaged in industry
associations to stay informed of the latest
developments and knowledge related to chemicals
and gases in our industry, including SEMI, SIA, SESHA,
IEEE, and regional associations. This helps us stay
informed, improve our operational safety, and
collaborate with customers to support transitioning
processes safely from R&D to their production
processes.
Year
Hazardous waste
(mtons)
Liquid chemical
waste (m3)
2022
20.2
719.5
2023
8.7
985.3
2024
10.3
927
32.4 Fluorinated process GHG emissions
Fluorinated chemicals are used extensively across the
semiconductor industry for etching and cleaning in the
manufacturing process. These chemicals have unique
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properties that allow for efficient plasma etching of
wafer surfaces and cleaning of tool-chamber residues
from wafer processing. They are also used as tracer
gases to test and validate gas lines prior to shipping out
ASM products. These compounds are stable when
released into the atmosphere, and absorb radiation,
resulting in high global-warming potentials. As such, they
represent a significant portion of the semiconductor
industry's GHG footprint.
Early industry action has allowed for abatement of a
significant portion of the total potential emissions from
these used chemistries, both from the utilized species
and the by‑product species resulting from their use.
Investment in abatement by ASM has similarly resulted in
a large reduction of the potential impact from utilizing
these necessary process gases. In fact, recent years
have shown installed abatement at ASM sites removing
approximately 90% of process-gas GHG emissions that
otherwise would have been emitted to the atmosphere.
Emissions are provided below for ASM’s direct F-GHG
emissions (in tonnes CO2 equivalents):
Year
NF3
CF4
SF6
2022
27.0
52.7
3.2
2023
43.5
62.3
50.6
2024
36.2
67.6
29.5
Values are reported in metric tonnes CO2 equivalents.
32.5 Volatile Organic Compounds
Volatile Organic Compounds (VOCs) are another class of
chemicals used extensively across the semiconductor
industry, primarily in solvents and cleaning applications.
They are able to remove contaminants in high-purity
semiconductor environments. Their effectiveness in use
applications are due to their chemical properties, which
also include high vapor pressures. This means that the
chemicals will quickly volatilize (vaporize) into the
gaseous phase, which can cause micro-contamination
and safety concerns if not properly vented.
These chemicals represent a very small footprint by
ASM, mostly resulting from cleaning applications at ASM
sites. Emissions values are provided assuming 100%
volatilization of purchased solvents to the atmosphere,
which is therefore a conservative approach.
Year
Emissions (tonnes)
2022
1.05
2023
1.99
2024
1.40
32.6 Biodiversity
In 2024, we continued with our biodiversity roadmap,
taking action to add biodiversity requirements into how
we manage our own physical footprint. ASM published
its first biodiversity policy in 2022, with the intention of
integrating biodiversity considerations into relevant ASM
business programs. In 2023, we performed our first-ever
biodiversity risk assessment of our new greenfield site in
Scottsdale, Arizona, where we plan to build our new
North American headquarters. The risk assessment
followed four steps: we conducted 1) a biodiversity
baseline study, 2) performed a desk-based assessment,
followed by 3) a field-based assessment, which
concluded in 4) a biodiversity impact report. The
assessment was based on the International Finance
Corporation Performance Standard 6 framework. Various
risks were identified, including birds with a high
presence and invasive species. We integrated the
findings from that risk assessment into our Green
Buildings program. This includes repotting all large trees
for reintroduction on the property, to ensure a native
ecosystem for the birds, and removing all invasive
species and replacing them with native plantings.
Aligned with our Green Buildings program, we integrate
biodiversity requirements within leading site
certifications like Leadership in Energy and
Environmental Design (LEED). The LEED certification
framework covers pollution prevention, habitat
protection, open space creation, rainwater management,
heat island reduction, and light pollution reduction.
These elements contribute to the points allocation under
LEED’s ‘Sustainable Sites’ category, guiding the
biodiversity focus in our site design.
At our future Scottsdale facility, we aim for LEED Gold
certification, focusing on reducing our environmental
footprint and enhancing local biodiversity. Our
biodiversity action plan, developed with third-party
experts, outlines our approach to integrate biodiversity
throughout the design, construction, and operational
phases. In 2024, ASM completed native plants survey
and developed plans for using native plants in landscape
design.
The expansion of our Hwaseong Korea facility also
targets LEED Gold certification. Situated in a developed
high-tech park, our biodiversity impacts are limited, but
efforts still focus on minimizing impacts and promoting
biodiversity through heat island reduction, habitat
restoration, and providing open spaces while minimizing
light pollution.
Our Singapore manufacturing operations feature
biodiversity-supporting elements in a Green Mark Gold+
certified building. Sustainable landscaping, water-
scaping, sustainable product use, and heat island
reduction contribute to supporting local biodiversity,
aligning with Singapore’s vision of a green, sustainable
city.
We also took steps to encourage biodiversity within our
supply chain through the prescribed use of wood from
certified sources for our packaging. With this
requirement, we aim to reduce the risk of habitat
destruction of native species. In 2024, we conducted a
supplier survey to better understand adherence to our
packaging specifications. While most suppliers meet
these requirements, the survey highlighted areas for
improvement, including the continued use of non-
compliant materials by a small number of our partners.
These insights help us identify opportunities to reduce
our packaging footprint and focus our future efforts. By
engaging suppliers in conversations about sustainable
practices, we aim to foster a collective commitment to
preserve biodiversity and promote sustainable sourcing
across the semiconductor industry, with ecosystem
services in mind.
Moving forward, ASM will continue to prioritize
biodiversity within our site designs. This includes
seeking high building standards, and further addressing
our impact on biodiversity through roadmaps for
footprint reduction.
32.7 Supplier diversity
In 2024, ASM continued to track the diversity of our
supply chain and continues to seek out new avenues to
support opportunities within the broader supply chain.
Building on our efforts from previous years, we have
maintained our engagement with SEMI’s Manufacturing
Ownership Diversity working group. Through this
collaboration, we can deepen our connections with
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diverse-owned businesses worldwide, leveraging the
working group’s collective knowledge to create
efficiencies, align approaches, and open new channels
for engagement.
With a more targeted strategy in place, we aim to
prioritize supplier engagement based on specific topics,
risk profiles, and each supplier’s scale and capabilities.
By focusing on these areas, we seek to foster an
inclusive supply chain that not only benefits our
business, but also contributes to the growth and
resilience of diverse-owned businesses in the
semiconductor industry and beyond.
32.8 Living wage in the supply chain
In 2024, we continued building on our existing
partnership with the Responsible Business Alliance (RBA)
to establish a standard to engage our value chain on the
topic of living wage. We remain focused on highlighting
the critical importance of providing a living wage
globally.
Our advocacy efforts over the past year helped maintain
momentum with the RBA’s Living Wage Task Force, to
examine the broad impacts of a living wage and develop
actionable guidelines for adoption across the industry.
The Task Force is currently finalizing a practical guide for
companies to help integrate living wage principles into
their operations and supplier engagements. We aim to
use these guides to survey our suppliers in 2025, and
begin our engagement on the topic.
ASM remains actively engaged in supporting the RBA's
efforts for standardization and will continue to
collaborate with the RBA and our partners to drive
tangible progress for employees throughout our value
chain.
32.9 Supplier summits
ASM hosted two supplier summits in 2024 to enhance
collaboration, share best practices, and drive responsible
sourcing in the semiconductor supply chain. The first
summit took place in April at ASM’s Phoenix offices. This
event provided a platform for suppliers to engage
directly with ASM leadership on critical sustainability
issues, including supply chain decarbonization,
responsible minerals sourcing, and ensuring human
rights are upheld. Participants shared insights on
industry challenges, exchanged innovative solutions, and
explored opportunities to strengthen collaborative
sustainability initiatives. Through best-practice
discussions, suppliers gained a deeper understanding of
ASM’s environmental and social expectations, reinforcing
collective efforts toward more sustainable manufacturing
processes.
The second summit was held in November at ASM’s
Singapore location, where the focus shifted towards
collaboration opportunities for social and environmental
impact. Key discussions covered upcoming regulatory
requirements, good practices to supply chain
engagement, and strategies for reducing waste and
emissions across the value chain. This summit
emphasized ASM’s commitment to fostering
transparency and long-term partnerships in the supply
chain, ensuring alignment with global sustainability
standards. It coincided with ASM’s Supplier Day, for
which details can be found in section 13.3 of this report.
As part of ASM’s ongoing efforts to recognize and
incentivize sustainability leadership, the company
awarded three of its suppliers the PRISM Award for their
sustainability contributions. These awards highlight
suppliers who have demonstrated exceptional
commitment to sustainability, whether through carbon
footprint reduction, innovative solutions, or ethical labor
practices. By recognizing these achievements, ASM aims
to encourage continuous improvement and inspire
broader industry action toward a more resilient and
responsible supply chain.
32.10 Tax principles
We see tax as an integrated part of doing business and
believe that tax should follow business. It is embedded
in the company’s core values to care for societies in
which ASM operates. This includes complying with tax
legislation, and making sure we pay the correct amount
of tax in the jurisdictions in which ASM operates, in line
with the added value of the business operations in that
jurisdiction.
ASM sees tax not only as a cost factor, but as a means
to contribute to the societies and jurisdictions we
operate. We are committed to provide timely, regular and
reliable information on ASM’s tax position.
ASM embraces the Dutch Tax Governance code, as
published by the Confederation of Netherlands Industry
and Employers (VNO-NCW). For 2024, ASM prepared a
separate Tax Report in which the company provides
transparency on tax related matters, including its tax
principles and strategy. The Tax Report includes an
overview of ASM's total tax contribution for 2024.
The 2024 Tax Report can be found on our website.
32.11 Tax governance, risk management
and compliance
ASM’s tax department is responsible for tax
management. The Management Board reviews and signs
off on the tax strategy and tax principles, at a minimum
on an annual basis. The Management Board (which is
ultimately responsible for tax-related matters)
supervises the tax team via the CFO, who discusses
adherence to the tax strategy and principles, together
with the Head of Tax, with the Supervisory Board's Audit
Committee.
ASM has a tax control framework in place to mitigate
risks and the testing of our tax control processes and
procedures takes place periodically by way of self-
assessment. Our tax control framework is updated from
time to time considering, for example, new tax
(legislative) developments, changes in ASM business,
and other external developments. The finance and tax
team periodically review the tax controls, and the tax
positions are part of the financial audit performed by our
external auditor.
We are dedicated to the timely, accurate and correct
filing of our tax returns and accompanying disclosures
and making the respective tax payments when required.
Relationship with stakeholders
ASM proactively engages with tax authorities to
establish and develop an open and transparent working
relationship, including, where applicable, early
engagement ahead of transactions and the filing of tax
returns. If we seek certainty upfront, the company
provides full disclosure of all relevant facts and
circumstances. We engage constructively in national and
international dialogue with governments, business
groups and tax associations to support the development
of new tax legislation and administration. This resonates
with our tax strategy, through which we want to create
an open and transparent dialogue and consider
the interests of all stakeholders. We also take part in
meetings of business groups and peer companies to
learn, improve, and provide our view on tax
developments.
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32.11 Cybersecurity
Protecting ASM’s physical and digital assets are crucial
elements in preserving our business, fostering
innovation, and upholding our position as a global leader
in the semiconductor space. To achieve this, ASM
Cybersecurity Management has introduced the
Cybersecurity Assurance Framework, which aligns with
industry best practices such as ISO 27001 and NIST.
This framework provides a robust foundation for our
cybersecurity initiatives and ensures a level of assurance
and maturity in our cybersecurity posture.
One of our key targets is data loss prevention. In 2024,
we have further implemented capabilities such as
Information Rights Management (IRM), which bolsters
our capacity to proactively prevent potential data loss,
thereby safeguarding our invaluable assets.
Recognizing that the cornerstone of a robust cyber
posture is physical security, ASM IP & Licensing and
Global IT have collaborated on conducting periodic site
audits. These audits not only drive strict adherence to
security requirements but also align with our overarching
business resiliency and risk-management activities,
further strengthening our commitment to comprehensive
security measures.
We have expanded our capabilities in detecting and
responding to advanced threats to address the ever-
evolving cyber-threat landscape. Our around-the-clock
enhanced threat intelligence now covers internal and
external threats, and continuous third-party monitoring
of our key suppliers’ cyber posture. This comprehensive
expansion aims to achieve early detection and swift
response to potential attacks.
We have a strong emphasis on readiness in response to
threats in our continued focus on cyber drills. These
exercises simulate real-world scenarios and help us keep
our response teams and playbooks current. They also
help us maintain our vigilance towards evolving cyber
threats.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
207
33. Five-year non-financial table
Employees
Employees
Number
2,583
3,312
4,258
4,542
4,558
Employees including temp
Number
2,689
3,462
4,397
4,654
4,632
New hires
Number
515
1,146
1,453
730
588
Diversity & inclusion
Employees
Male (% globally)
85 %
85 %
83 %
83 %
82 %
Female (% globally)
15 %
15 %
17 %
17 %
18 %
Supervisory Board
% Female/% Male
33 / 67%
43 / 57%
50 / 50%
50 / 50%
43 / 57%
Management Board
% Female/% Male
0 / 100%
0 / 100%
0 / 100%
0 / 100%
0 / 100%
Gender pay ratio (median)
Female-Male (total)
99 %
95 %
98 %
98 %
97 %
Nationalities
Number
40
47
59
66
69
Workforce split
Asia
58 %
63 %
62 %
59 %
57 %
US
28 %
25 %
24 %
26 %
29 %
Europe
14 %
12 %
14 %
15 %
14 %
Foreign nationals workforce split
Asia
59 %
66 %
66 %
62 %
55 %
US
29 %
23 %
21 %
24 %
31 %
Europe
12 %
11 %
13 %
14 %
14 %
Other segmentation
Employees in R&D
Percent
24 %
20 %
22 %
24 %
25 %
Employees covered by collective bargaining
Number
328
254
408
514
486
Percent of worker under collective bargaining
Percent
11.7 %
7.7 %
9.6 %
11.3 %
10.7 %
Voluntary attrition rate
Percent
8.3 %
11.1 %
10.2 %
6.6 %
6.8 %
Total attrition rate
Percent
10.8 %
12.5 %
12.0 %
9.2 %
11.6 %
% performance management completion
Percent
99.0 %
100.0 %
100.0 %
100.0 %
99.0 %
Health and safety
Injury rate
per 100 employees
0.58
0.50
0.55
0.48
0.47
Recordable injury rate
per 100 employees
0.23
0.26
0.30
0.28
0.24
Number of recordable injuries
Number
6
8
12
13
11
Asia
3
2
5
4
4
Europe
—
2
2
3
1
Categories
Indicators
Units or Definition
2020
2021
2022
2023
2024
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
208
US
3
4
5
6
6
Lost time injury rate (LTIR)
per 100 employees
0.16
0.17
0.17
0.11
0.06
Fatality rate
per 100 employees
0
0
0
0
0
Efforts to assess, monitor, reduce exposures
Qualitative
*See Health & safety, People section
Training
Ethics training (bi-annual)
All employees
100.0 %
97 %
97 %
97 %
92 %
Ethics training
New hire employees
99.2 %
98 %
99 %
94 %
95 %
Technical training hours of ASM employees
Hours annually
28,624
46,727
87,134
53,418
53,103
Environmental
Electrical consumption 1
MWh
44,915
56,286
62,366
76,371
82,194
Grid electricity 1
Percent from grid
100 %
100 %
100 %
100 %
99 %
Renewable EACs purchased 1
MWh (or EAC units)
366
41,563
45,787
67,281
82,194
Renewable electricity 1
Percent from renewable sources
10.0 %
74.0 %
73.0 %
88.0 %
100.0 %
Scope 1 and 2 (market-based) GHG emissions 1,2
Kilotonnes CO2e
25.0
9.8
11.1
7.9
3.8
Gross global Scope 1 GHG emissions 1
Kilotonnes CO2e
1.0
1.3
2.0
2.4
2.5
Gross global Scope 2 (location-based) GHG emissions 1
Kilotonnes CO2e
24.0
24.3
27.1
32.8
33.0
Gross global Scope 2 (market-based) GHG emissions 1,2
Kilotonnes CO2e
24.0
8.4
9.1
5.4
1.3
Scope 1 and 2 (market-based) GHG per revenue (emission intensity) 1,2
Tonnes CO2e/million €
18.8
5.6
4.5
3.0
1.3
Water withdrawn absolute 1
Cubic meters
140,506
175,774
168,517
221,406
223,884
Water withdrawn from water-stressed regions 1
Percent from high or extremely high
water-stressed regions
47.0 %
43.0 %
37.0 %
41.0 %
44.0 %
Water intake per revenue (water intensity) 1
Cubic meters/million €
106
102
70
84
76
Significant chemicals spills or releases to the environment
Number
0
0
0
0
0
Non-hazardous solid waste recycle
Tonnes
714
1,429
1,981
1,557
1,545
Non-hazardous solid waste landfill 1
Tonnes
56
97
101
92
102
Non-hazardous solid waste incinerated with energy recovery 1
Tonnes
—
—
—
—
—
Non-hazardous solid waste incinerated without energy recovery 1
Tonnes
104
264
340
323
316
Non-hazardous reuse - ASM diversion
Tonnes
122
215
453
352
395
Reuse/recycle rate (ASM operations)
% solid waste reused or recycled
84 %
82 %
85 %
82 %
82 %
Waste to landfill rate (ASM operations)
% solid waste sent to landfill
6 %
5 %
4 %
4 %
4 %
Landfill diversion (in scope packaging reuse across ASM value chain)
Tonnes (through all reuse sectors)
163
260
542
500
539
Categories
Indicators
Units or Definition
2020
2021
2022
2023
2024
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
209
Ethics compliance
Reported confidential concerns via SpeakUp! and other channels
Number
9
8
8
14
27
Confirmed cases of non-conformity to our Code of Business Conduct
Number
2
1
1
6
8
RBA Risk assessment
RBA self-assessment rating
RBA rating (corporate + all applicable
facilities)
Low
Low
Low
Low
Low
Supply chain
Total direct supplier spend by region 1
Asia percent
71 %
72 %
72 %
74 %
77 %
North America percent
22 %
20 %
20 %
19 %
20 %
Europe percent
7 %
8 %
8 %
7 %
3 %
Supply chain (critical, strategic
suppliers)
RBA Code of Conduct acknowledgement
Percentage
100 %
99 %
100 %
99 %
94 %
RBA self-assessment questionnaire (SAQ) with low/medium risk
Percentage
77 %
84 %
84 %
84 %
89 %
Material sourcing
Critical/strategic suppliers conflict minerals CMRT received
Percentage
100 %
100 %
100 %
99 %
96 %
Intellectual property
Patents in force
Number
2,094
2,250
2,619
2,953
3,395
Intellectual property protection & competitive behavior
Monetary losses as a result of legal
proceedings associated with anti-
competitive behavior regulations
0
0
0
0
0
Categories
Indicators
Units or Definition
2020
2021
2022
2023
2024
1 Where reported numbers for prior years have been revised, explanations are provided in the ESG Supplement.
2 As ASM did not procure market-based renewable electricity in 2020, the table reflects location-based sourcing.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
210
34. Non-IFRS financial
performance measures
Certain parts of this Annual Report contain non-IFRS financial performance measures, which are not recognized
measures of financial performance or liquidity under IFRS. These are commonly referred to as non-IFRS financial
measures.
ASM uses items such as working capital and free cash flow as internal measures of financial performance. ASM’s
definition of these measures may not be comparable with similarly titled financial performance measures and
disclosures by other entities.
These measures may not be indicative of the company’s historical operating results nor are such measures meant to
be predictive of the company’s future results.
The presentation of the non-IFRS measures and non-financial operating data in this report should not be construed
as an implication that ASM’s future results will be unaffected by exceptional or non-recurring items.
ASM presents non-IFRS financial measures in this Annual Report because it monitors these performance measures at
a consolidated level, and it believes that these measures are relevant to an understanding of the group’s underlying
financial performance, adjusted for the impact of purchase price accounting, earn-out expenses and impairment
(reversal) on its investments in associates.
Non-IFRS financial performance measures
Financial performance measures
Definitions
Adjusted cost of sales
Cost of sales adjusted for the amortization expenses of fair value adjustments from
purchase price allocation
Adjusted gross profit
Gross profit adjusted for the amortization expenses of fair value adjustments from
purchase price allocation
Adjusted gross research &
development expenses
Gross research & development expenses adjusted for the amortization expenses of
fair value adjustments from purchase price allocation
Adjusted selling, general and
administrative expenses
Selling, general and administrative expenses adjusted for the amortization expenses
of fair value adjustments from purchase price allocation
Adjusted operating result
Operating resulted adjusted for the amortization expenses of fair value adjustments
from purchase price allocation
Adjusted finance income
(expenses)
Finance income (expenses) adjusted for the change in fair value of the contingent
consideration ("LPE earn-out")
Adjusted share in income of
investments in associates
Share in income of investments in associates adjusted for the amortization expenses
of fair value adjustments from purchase price allocation
Adjusted income taxes
Income taxes adjusted for the realization of temporary differences resulting from
purchase price allocation
Adjusted net earnings
Net earnings adjusted for the amortization of fair value adjustments from purchase
price allocations (net of tax), change in fair value of the contingent consideration ("LPE
earn-out") and (impairment) reversal of ASMPT.
Cash flows from operating
activities after investing activities
Cash flows from operating activities after investing is also referred to as free cash
flow.
Operating cash flows before
changes in working capital
Cash flows from operating activities excluding the impact of movements in working
capital during the period.
Working capital
The sum of accounts receivable, contract assets, other current assets, inventories,
provision for warranty, accounts payable, contract liabilities, accrued expenses and
other payables.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
211
35. Five-year financial tables
Consolidated statement of profit or loss
(€ thousand, except per share data)
2020
2021
2022
2023
2024
Revenue
1,328,122
1,729,911
2,410,927
2,634,331
2,932,724
Cost of sales
(704,553)
(901,780)
(1,268,046)
(1,362,635)
(1,451,351)
Gross profit
623,569
828,131
1,142,881
1,271,696
1,481,373
Other income
(621)
4,071
40
69
7,391
Operating expenses:
Selling, general and administrative
(156,802)
(189,547)
(276,620)
(308,727)
(316,811)
Research and development
(139,002)
(151,197)
(233,866)
(309,297)
(369,818)
Total operating expenses
(295,804)
(340,744)
(510,486)
(618,024)
(686,629)
Result from operations
327,144
491,458
632,435
653,741
802,135
Finance income
141
23
2,246
14,826
21,658
Finance expense
(2,304)
(2,012)
(4,098)
(13,600)
(10,582)
Foreign currency exchange gain (loss)
(22,862)
33,473
25,011
(21,375)
45,048
Net finance income (costs)
(25,025)
31,484
23,159
(20,149)
56,124
Share in income of investments in associates
31,950
74,382
64,771
17,540
9,643
Reversal of impairment of investments in associates, net
—
—
(215,389)
215,389
—
Result before income taxes
334,069
597,324
504,976
866,521
867,902
Income taxes
(48,673)
(102,615)
(115,863)
(114,448)
(182,168)
Net earnings from operations, attributable to common shareholders
285,396
494,709
389,113
752,073
685,734
Per share data
Basic net earnings per share (€):
From operations
5.84
10.17
7.97
15.26
13.95
Diluted net earnings per share (€):
From operations
5.78
10.11
7.93
15.18
13.89
Weighted average number of shares (thousand):
Basic
48,907
48,645
48,820
49,286
49,165
Diluted
49,359
48,909
49,097
49,555
49,386
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
212
Consolidated statement of financial position
(€ thousand)
2020
2021
2022
2023
2024
Assets
Right-of-use assets
23,387
26,938
31,663
35,395
36,525
Property, plant and equipment
213,967
257,017
312,053
384,949
482,901
Evaluation tools at customers
69,474
63,717
68,676
79,597
109,539
Goodwill
11,270
11,270
320,818
320,167
321,318
Other intangible assets
209,924
274,833
646,104
705,624
815,590
Investments in associates
742,714
848,812
686,341
861,937
903,625
Other investments
-
-
5,814
11,307
19,821
Deferred tax assets
196
69
181
179
34,651
Other non-current assets
6,590
6,792
7,071
15,778
18,810
Employee benefits
1,431
1,982
2,556
2,919
3,816
Total non-current assets
1,278,953
1,491,430
2,081,277
2,417,852
2,746,596
Inventories
162,199
211,841
538,425
525,690
567,007
Accounts receivable
280,061
446,724
580,823
487,727
788,958
Contract assets 1
38,277
26,302
63,982
59,392
57,745
Income taxes receivable
553
18,614
18,778
29,957
4,836
Other current assets 1
34,668
24,670
48,189
68,845
70,277
Cash and cash equivalents
435,228
491,507
419,315
637,264
926,501
Total current assets
950,986
1,219,658
1,669,512
1,808,875
2,415,324
Total assets
2,229,939
2,711,088
3,750,789
4,226,727
5,161,920
Equity and liabilities
Equity
1,854,724
2,241,754
2,749,319
3,226,811
3,747,155
Other liabilities
13,045
15,886
18,604
22,684
23,589
Contingent consideration payable
-
-
78,649
88,304
-
Deferred tax liabilities
21,892
45,748
123,803
150,147
190,944
Total non-current liabilities
34,937
61,634
221,056
261,135
214,533
Accounts payable
124,507
175,436
243,499
177,686
282,554
Contingent consideration payable
-
-
-
-
97,002
Provision for warranty
18,987
27,181
34,219
22,716
33,401
Income taxes payable
67,857
14,519
43,785
21,925
66,243
Contract liabilities 1
51,136
81,374
295,180
300,241
485,732
Accrued expenses and other payables 1
77,791
109,190
163,731
216,213
235,300
Total current liabilities
340,278
407,700
780,414
738,781
1,200,232
Total liabilities
375,215
469,334
1,001,470
999,916
1,414,765
Total equity and liabilities
2,229,939
2,711,088
3,750,789
4,226,727
5,161,920
1 Contract assets and liabilities are retrospectively separated from 'other current assets' and 'accrued expenses and other payables'.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
213
Consolidated statement of cash flows
Cash flows from operating activities
Net earnings from operations
285,396
494,709
389,113
752,073
685,734
Adjustments to reconcile net earnings to net cash from operating activities
Depreciation, amortization and impairments
89,029
95,580
122,434
180,896
195,800
Net loss (gain) on sale of property, plant and equipment
-
(4,071)
(40)
185
(7,036)
Share-based compensation
12,792
17,242
29,877
37,308
41,576
Net finance (income) costs
11,974
(23,510)
3,886
(9,466)
(24,759)
Share in income of investments in associates
(31,950)
(74,382)
(64,771)
(17,539)
(9,643)
Impairment (reversal of impairment) of investments in associates, net
-
-
215,389
(215,389)
-
Income tax
48,673
102,615
115,863
114,448
182,168
Changes in evaluation tools at customers
(39,710)
(7,980)
(20,516)
(32,218)
(47,080)
Changes in employee benefits pension plans
(407)
(339)
198
98
(11)
Income tax paid
(8,055)
(151,623)
(90,481)
(118,766)
(97,563)
Operating cash flows before changes in working capital 1
367,742
448,241
700,952
691,630
919,186
Decrease (increase) in working capital: 1
Accounts receivable
(93,000)
(154,030)
(125,068)
67,660
(294,635)
Other current assets
(724)
2,670
(14,081)
(21,817)
(1,522)
Inventories
498
(39,148)
(276,914)
(3,537)
(31,961)
Provision for warranty
3,814
7,140
5,097
(10,220)
9,933
Contract assets and liabilities
(28,036)
39,473
131,178
21,485
184,598
Accounts payable, accrued expenses and other payables
14,059
76,294
120,324
(9,314)
112,055
Net cash from operating activities
264,353
380,640
541,488
735,887
897,654
Year ended December 31,
(€ thousand)
2020
2021
2022
2023
2024
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
214
Cash flows from investing activities
Capital expenditures property, plant and equipment
(95,441)
(72,199)
(101,184)
(154,103)
(167,895)
Proceeds from sale of property, plant and equipment
2,348
6,159
940
3,558
8,817
Capitalized development expenditures
(64,126)
(81,973)
(102,627)
(147,220)
(166,343)
Capital expenditures intangible assets
(3,230)
(2,680)
(4,662)
(16,389)
(30,492)
Dividend received from associates
16,142
36,297
48,919
30,753
13,668
Acquisition of subsidiaries, net of cash acquired
-
-
(314,295)
-
-
Other investments
-
-
(1,971)
(5,641)
(7,721)
Net cash used in investing activities
(144,307)
(114,396)
(474,880)
(289,042)
(349,966)
Cash flows from operating activities after investing activities 1
120,046
266,244
66,608
446,845
547,688
Cash flows from financing activities
Payment of lease liabilities
(7,819)
(7,854)
(10,289)
(12,602)
(14,177)
Credit facility renewal fee paid
-
-
(660)
-
-
Purchase of treasury shares
(66,715)
(140,142)
-
(100,928)
(151,366)
Proceeds from issuance of treasury shares
2,774
4,630
-
863
-
Dividends to common shareholders
(98,688)
(96,893)
(121,650)
(123,383)
(135,487)
Net cash used in financing activities
(170,448)
(240,259)
(132,599)
(236,050)
(301,030)
Foreign currency translation effect on cash and cash equivalents
(12,244)
30,294
(6,201)
7,154
42,579
Net increase (decrease) in cash and cash equivalents
(62,646)
56,279
(72,192)
217,949
289,237
Cash and cash equivalents at beginning of year
497,874
435,228
491,507
419,315
637,264
Cash and cash equivalents at end of year
435,228
491,507
419,315
637,264
926,501
Year ended December 31,
(€ thousand)
2020
2021
2022
2023
2024
1 Non-IFRS performance measure. Please refer to chapter 34 'Non-IFRS performance measures'.
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Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
215
36. Declarations
Corporate governance statement
The Dutch Corporate Governance Code was last
updated in 2022. As of the reporting year 2024, Dutch-
listed companies are required to report on compliance
with this code.
The full text of the Dutch Corporate Governance Code
can be found on the website of the Monitoring
Commission Corporate Governance Code.
ASM complies with the Dutch Corporate Governance
Code, save for the deviations set out herein. ASM
applies the relevant principles and best practices of the
Dutch Corporate Governance Code applicable to the
company, the Management Board, the Executive
Committee and to the Supervisory Board, in the manner
set out in the Corporate Governance section, as long as
it does not entail disclosure of commercially sensitive
information and other than as set out below:
• The Supervisory Board has delegated the contacts
with the internal auditor to the Audit Committee. The
Audit Committee is the body with the most financial
experience, best equipped to properly discuss with
the internal auditor, in which five out of seven
Supervisory Board members are represented.
However, the internal auditor may always contact the
Chair of the Supervisory Board directly in case there
are any matters to escalate which is also laid down in
the Audit Committee Charter. The internal audit plan,
the remuneration of the internal auditor and an
appointment or dismissal of the internal auditor
require approval from the Supervisory Board.
Moreover, the Audit Committee shares full minutes of
all its meetings with the Supervisory Board, so that
the Supervisory Board remains informed of all items
discussed. This means that ASM deviates from best
practice provisions 1.3 (as the Supervisory Board
does not oversee the internal auditor directly, but
through the Audit Committee). Moreover, pursuant to
best practice provision 1.3.5, the internal auditor
should report hierarchically to a member of the
Management Board, preferably to the CEO. The
internal auditor does report to a member of the
Management Board, but to the CFO as ASM believes
the CFO is best equipped with this task.
• For the same reasons as included in the previous
bullet, the Audit Committee, rather than the
Supervisory Board, has maintained the contact with
the external auditor, and KPMG Accountants N.V. has
attended several Audit Committee meetings. This
means that ASM deviates from best-practice
provisions 1.6.2 (it is the Audit Committee instead of
the Supervisory Board that gives the external auditor
a general idea of the content of the reports relating to
its functioning).
• Pursuant to best-practice provision 3.1.3, the
Management Board should inform the Supervisory
Board about the remuneration of the members of the
Executive Committee who are not Management Board
members and discuss this remuneration with the
Supervisory Board annually. As management had not
finalized the benchmark it was conducting on
executive committee remuneration, it will share and
discussed the remuneration in the first half of 2025,
rather than in 2024, which means ASM has not
managed the finalizing of this in reporting year 2024.
Corporate governance-related documents are available
on our website. These include, among others, the
Articles of Association, Supervisory Board Profile, Rules
of the Supervisory Board, Rules of the Management
Board, Rules of the Executive Committee, the Audit
Committee Charter, the NSR Committee Charter, the
Technology Committee Charter, the COBC, the
Stakeholder dialogue policy, the anti-fraud policy, the
rules concerning Insider Trading, the Remuneration
Policy of the Management Board, the Remuneration
Policy of the Supervisory Board, the Diversity, Equity &
Inclusion (DE&I) policy, the SpeakUp! procedure and
policy regarding communications and bilateral contacts
with shareholders.
Responsibility statement
The members of the Management Board state that, to
the best of their knowledge, the statutory financial
statements prepared in accordance with EU-IFRS and
Title 9 of part 2 of the Dutch Civil Code as included in
this Annual Report 2024 provide a true and fair review of
the assets, liabilities, financial position, and results of the
company and its subsidiaries included in the
consolidated statements, and that the management
report provides a true and fair review of the position and
the business of the company and its subsidiaries, and
the Annual Report 2024 provides a fair review of the
state of affairs at the balance sheet date, the
development / performance during the financial year of
the business (and group as a whole) and the principal
risks that ASM faces.
For more on the risks ASM faces, the internal risk
management and control framework and the
declarations provided in relation thereto pursuant to the
Dutch Corporate Governance Code, see chapter 19.
Article 10 EU takeover directive decree
The Management Board states that the information
required under Article 10 of the EU Takeover Directive
Decree is disclosed herein to the extent that it is
applicable to ASM:
• This includes a change of control clause, which could
lead to prepayment of any outstanding amount. See
note 17 ‘Credit facility’;
• ASM is party to commercial agreements, including
lease agreements, which occasionally include change
of control clauses;
• ASM is party to an agreement with the Stichting
Continuïteit ASM International pursuant to which the
Stichting is granted an option to acquire up to a pre-
determined number of our preferred shares in the
event of a potential public takeover. See chapter 21,
section Stichting Continuïteit Agreement; and
• In case of a change of control, Management Board
members may be entitled to a severance amount as
set out in the Remuneration Policy for the
Management Board and the Remuneration report in
chapter 26.
Introduction
Strategy and performance
Sustainability statements
Leadership and governance
Financial statements
Appendix
ASM Annual Report 2024
216
Feedback and questions
Please feel free to contact us if you
have any feedback on or questions about
our Annual Report:
investor.relations@asm.com
ASM International N.V.
Versterkerstraat 8
1322 AP Almere
The Netherlands
Published on March 6, 2025
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