ASM International N : Interim Financial Report

INTERIM REPORT

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2021

ASMI INTERIM REPORT 2021

2

TABLE OF CONTENTS

GENERAL	3
ASMI AT A GLANCE	4
VALUE CREATION	6
STRATEGY	11
KEY FIGURES	14
INTERIM MANAGEMENT BOARD REPORT	15
REPORTING RESPONSIBILITIES AND RISKS	20
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS	21

ASMI INTERIM REPORT 2021

3

GENERAL

ASM International N.V. was incorporated on March 4, 1968, as a Dutch public limited liability company ("Naamloze Vennootschap") and was previously known as Advanced Semiconductor Materials International N.V.

Our principal executive office is located at Versterkerstraat 8, 1322 AP, Almere, the Netherlands. Our telephone number at that location is [phone], website http://www.asm.com.

The Company's first half of the financial year runs from January 1 to June 30.

SUPERVISORY BOARD

M.C.J. van Pernis, Chairman

M.J.C. de Jong

1. Kahle-GalonskeD.R. Lamouche M. de Virgiliis

MANAGEMENT BOARD

G.L. Loh, Chairman of the Management Board, President and Chief Executive Officer

P.A.H. Verhagen, Member of the Management Board and Chief Financial Officer

ASMI INTERIM REPORT 2021

4

ASMI AT A GLANCE

ASM International N.V. (ASMI) is a leading supplier of semiconductor wafer processing equipment and process solutions. Our customers include all of the top semiconductor device manufacturers in the world. Semiconductor chips sit at the heart of almost every electronic device we use today, and ASMI equipment is a key technology used to manufacture many of these chips.

WHAT WE DO

ASMI supplies wafer processing equipment to the leading semiconductor manufacturers. The total market outlook for 2021 wafer fab equipment (WFE) is US$83 billion (Gartner, July 2021). Within wafer processing equipment, the major segments include lithography, etch & clean, deposition, and process diagnostics. Our focus is on deposition equipment, which comprises about a quarter of WFE. We are a key player in the deposition equipment segments for atomic layer deposition (ALD) and epitaxy, and a focused niche player for PECVD and vertical furnaces.

At ASMI we design, manufacture, sell and service our deposition tools to supply our customers with advanced technologies for the production of semiconductor devices, or integrated circuits (ICs). Semiconductor ICs, or chips, are a key technology enabling the advanced electronic products used by consumers and businesses everywhere. Our tools are used by semiconductor manufacturers in their wafer fabrication plants, or fabs. Furthermore, we provide maintenance service, spare parts, and process support to our customers globally at their fabs, which typically operate on a 24-hour basis.

LOGIC, FOUNDRY AND MEMORY MARKETS

The semiconductor market can be split into three primary segments: logic, foundry and memory. ASMI supplies equipment to the leading semiconductor manufacturers in all of these segments:

• The logic market is made up of manufacturers that create chips, such as microprocessors, that are used to process data and are used in smartphones, laptops and computers;
• The foundry market consists of businesses that operate semiconductor fabrication plants to manufacture the designs of other so-called fabless semiconductor companies; and

››The memory market covers manufacturers that make chips that store information either temporarily, such as Dynamic Random Access Memory (DRAM), or permanently, such as NAND non-volatile memory.

There are other smaller, yet still important market segments for which ASMI supplies equipment, such as analog and power. Analog and power semiconductors are devices used in a wide range of electronic systems for mobile products, automobiles, telecommunications, and other applications. Wafer manufacturing is another relatively small segment that we participate in, for the processing of bare silicon wafers before they are delivered to semiconductor fabs.

Our customers' goal is to build faster, cheaper, and increasingly more powerful and lower energy consuming semiconductors for each new technology node. We work closely with our customers to make this a reality, forging mutually beneficial partnerships to help develop their technology roadmap. 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, increase productivity and lower operating costs per wafer. The result is value creation for our customers. While doing so, we work on the edge of what is technologically possible. This creates a very attractive professional and learning environment for our employees and generates long-term value for all of our stakeholders. We serve society by helping our customers to produce the chips needed for advanced electronics that deliver a world of improvements and opportunities. The world around us shows an increasing need for the use of more applications and lower energy usage. For example, increasingly complex processor chips are used for artificial intelligence applications and advanced chips used in 5G mobile phones require lower power usage, for which our high-k ALD process is beneficial.

ASMI INTERIM REPORT 2021

5

BASICS OF SEMICONDUCTOR MANUFACTURING

The process of making semiconductor chips at our customers' fabs is both highly complex and very costly. Semiconductor fabs house a large set of wafer-processing equipment which perform a series of process steps on round silicon wafers, which are typically 300mm in diameter. The equipment is operated in cleanrooms, which filter the air to avoid contamination from small particles that could negatively affect the circuitry on the chips.

Many individual steps are performed using various types of wafer processing equipment to create a semiconductor chip, including photolithographic patterning, depositing thin-film layers, etching to remove material and thermal treatments. Our systems are designed for deposition processes when 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 necessary to manufacture a chip. After testing the individual circuits to ensure correct performance, the chips on the wafer are separated and then packaged in a protective housing before ultimately becoming part of a set of semiconductor chips on circuit boards within an electronic product. ASMI is a key player in the ALD and epitaxy segments, and a niche player in vertical furnace and PECVD.