ASMPT Retains SMT Unit as Bookings Top $1.4 Billion Since Start of 2026
Key Facts
ASMPT said on November 5, 2026, that its board had decided to retain the Surface Mount Technology (SMT) Solutions business within the group, ending a strategic options review that began in January 2026. The company said the decision followed a review of multiple alternatives for the business in light of its growth prospects. Chief Executive Basil Haddad linked the decision to a change in its financial outlook, saying AI-driven demand “puts the business at the threshold of a major shift in its financial profile.” The decision comes as investment in AI infrastructure accelerates, which ASMPT sees opening up sources of demand in servers, networking, photonics and power. The percentage increase in the shares or their price in the November 11 session could not be verified from a reliable public source.
The options considered by the board included exiting the business, forming a joint venture, spinning it off from the group and pursuing a public listing, as well as retaining it. The company said the board concluded that keeping the SMT unit was in the best interests of the company and its shareholders, and that the group would continue to support its development and growth. ASMPT frames the decision against a shift in the business from one affected by industrial cycles to one benefiting from investment related to AI infrastructure. According to the company, that investment spans servers, networking, photonics and power, broadening the base of applications that require the business’s systems. The decision to retain the unit reflects the group’s bet that this demand will continue and could feed through to revenue and profitability.
ASMPT says the addressable market for its SMT business is projected to grow at a compound annual rate of more than 20% between 2024 and 2027, driven by accelerating investment in AI infrastructure. The business’s share of market bookings rose from about 24% in 2025 to nearly 31% since the start of 2026. Bookings also increased from about $0.7 billion in 2025 to more than $1.4 billion since the start of 2026, according to company figures. The demand mix shifted alongside this expansion, with AI-related applications rising to more than 50% of bookings since the start of 2026, from 12% in the corresponding period of 2024. These indicators point to the growing weight of AI applications in SMT’s business, according to company data.
At the business level, SMT bookings set a record for the third consecutive quarter in the third quarter of 2026. Bookings rose 18.9% from the previous quarter and 122.1% year over year, driven mainly by strong demand for AI servers, the company said. At the group level, quarterly revenue rose 48.7% year over year to HK$5.25 billion, while bookings reached a record HK$8.85 billion, up 137.9% year over year. The book-to-bill ratio was 1.69, its highest since the first quarter of 2021. Adjusted gross margin also reached 42.9%, up 517 basis points from a year earlier.
Bookings related to advanced packaging have been a notable part of SMT’s growth, reaching about $340 million since the start of 2026, or nearly 25% of the business’s bookings over the same period, according to ASMPT estimates. The company plans to translate this expansion into revenue and margin growth, expecting the business’s revenue to double from its 2025 level to about $1.6 billion by 2027. It also targets a business margin of 20% that year. These projections are based on growth in the market the company targets, the increase in bookings and the contribution from AI applications. The targets are the company’s forward-looking indicators for the business following its decision to retain it within the group.
For the fourth quarter of 2026, ASMPT expects group revenue of between $670 million and $730 million, with double-digit growth in SMT revenue. The midpoint of the revenue range, at $700 million, represents a year-over-year increase of 37.5%, according to the company. It expects bookings to be below the third-quarter record, however, due to exceptional orders and the timing of some SMT orders, while remaining clearly higher year over year. The company said the exceptional orders and timing shift explain the expected decline from the previous record bookings level. Revenue and bookings estimates for the coming quarter remain part of the company’s outlook published with its third-quarter results.