ASM HHV joins hands with iisc bangalore.
A small step in right direction.
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The affiliation with IISc Bangalore is going to pay some big dividends over the next few years!
On another note, and this might be a case of me being pedantic with semantics, but I get mildly peeved when ASM Technologies is called an IT company. For example in the linked article, the company’s share price movement is compared with IT companies.
To me, ASM is primarily an ER&D (engineering research and development) company. In general, it operates higher up the value chain than the typical IT company, and apart from taking advantage of the lower labour costs in India, I do not see a lot in common between ER&D and IT services.
One company whose share price has really benefitted from the growth in ER&D in India is Tata Elxsi, although I believe that the ER&D story is just beginning. Please click here for a very comprehensive brochure on what the ER&D space actually is.
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Thanks for sharing the link! It’s good to see companies starting to highlight ER&D as something separate from traditional IT services.
Within the IT and ER&D universe, we have relatively pure-play companies that are primarily IT services providers, or ER&D companies (ASM Technologies, Tata Elxsi, etc.).
However, the confusion arises when there’s a good mix of IT and ER&D under one roof. However, as the sector matures, I think research analysts and other market observers will start separating these two separate businesses when analyzing a company.
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Modern Manufacturing India (MMI) Sept - Oct 2022 Edition.pdf (3.1 MB)
India has waited far too long for this moment to arrive — a new sunrise beckons.
#indiasemicon
Major points in the article.
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"Semiconductor manufacturing is still very nascent in India. To build semiconductors at any time, India should also be able to manage the production tools and build parts of the tools, if not the whole".
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In the next ten years, we will have quite a few semiconductors made in India and make some equipment in the country. They may not be state-of-the-art, but they will reduce our import bill significantly - As the ecosystem evolves, we will be progressing from part-time tool manufacturers and maintenance specialists to full-time tool designers.”
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ASM-HHV will also be working towards developing and **producing many pieces of equipment, sub-assemblies, and sub-systems required to support the establishment of amorphous **
silicon- and perovskite-based solar cell manufacturing capabilities. -
In the Semi space ASM HHV will also be working
on supporting international companies in obsolescence management and sustaining processes that are not directly supported by the OEMs.
Article is written by Mr Reji Varghese MD of Forms and Gears, subsidiary of Asm technology.
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Decoupling of world supply chain is real and happening. Semiconductor manufacturing is a major sector to reflect this transformation.
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Thank you so much for sharing the MMI article!
It shows a clarity of purpose in the organization regarding how they plan to add value in the semiconductor space in India. It sheds light on where the ASM-HHV JV fits in.
In addition, I was thrilled to see that Mr. Reji Varghese of Forms and Gears wrote the article. So whether it’s Forms and Gears, the parent company, or the ASM-HHV JV, the organization as a whole is very cognizant about the opportunities in front of them.
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Asm Tech Q2 result.
YoY Topline growth 32%
YoY PAT down 50%
QoQ Topline growth 25%
QoQ PAT down 30%
Basically company continue to grow their revenue while profitability taken a big hit.
On expense side what got my attention is 15 cr spend on raw material while manufacturing revenue is just 3.9 cr. This is very strange and can happen only when any of these things or all of these things happens.
#Customer rejected production
#Trials happening and awaiting customer approvals
#Bulk RM purchase for future production (example imported sensors etc).
Basically my assumption is this could be one off expense, low probability to repeat, company would have done 7-8 cr PAT without this big ticket expense. This is my assumption looking at numbers, i could be wrong too. If the company conduct a concall we can verify and confirm this.
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Thanks for the summary! Personally, I don’t mind profits taking a dive, as long as the company continues to invest in growth.
I really hope that the additional expense is for trials awaiting approval, or a bulk raw materials purchase.
The company really does need to consider concalls more than once a year, so these sorts of questions that shareholders have can get answered.
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Asm tech investor presentation for Q2 FY 23.
e58f5c0c-8dbb-4355-bb43-d4037ca2857f (3).pdf (2.1 MB)
df1419b7-e2e0-489a-b555-b09e341b4b1a.pdf (76.3 KB)
“ We have managed to surpass our expectations which are visible in terms of strong numbers of the company. Our focus on design led manufacturing enabled us to remain ahead of the curve. With the focus on digitisation, there continues to be a strong demand for design led manufacturing. The hi tech and engineering industries are gaining momentum with investments, attention, incentives and govt. support. We shall continue to pursue all such efforts to increase the company’s operational effiency and revenues "
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" We do not intend to be like Taiwan (focused only on manufacturing). We will focus manufacturing, packaging, design and innovation " .
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I am glad that Rabindra sir is making an appearance at industry events like this. It conveys that the management is serious about making itself known as a thought leader, which can be seen as a potential leading indicator of further upside in the company’s performance.
" When comparing the competitiveness of Vietnam and Bangladesh to Indian manufacturing, it needs to be understood that in the high technology space India has an advantage due to large investments into engineering and scientific education and research institutions. "
Article is written by Mr Prasanth Sakhamuri, Managing Director, Hind High Vacuum Company Pvt. Ltd.
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Great to hear from the MD at Hind High Vacuum. Thanks for sharing this, @shanid
I look forward to seeing some meaningful revenue from the JV with ASM materialize over the next 4 quarters. While the potential is sky high, winning orders and execution is key.
The two companies have deep technical capabilities. For the purposes of semiconductor equipment manufacturing, ASM does have more strength in design, while HHV seems to have manufacturing figured out better. So the synergistic JV that they have set up makes a lot of sense.
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https://www.mmindia.co.in/article/1554/asm-technologies-opens-engineering-services-office-in-pune-
Asm tech expanding to Pune.
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This is a very smart move. They already have a presence in Salem, which can cater to one major industrial belt, and with the office in Pune, they will now have a foothold in another industrial belt.
Not to mention the fact that a lot of folks in Maharashtra are suddenly going to look this company up to see what it’s all about, whether they’re prospective customers or shareholders.
I look forward to seeing the company’s Q3FY23 results and investor presentation.
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As per the below news item, ground breaking of India’s very first chip fabrication plant to happen very soon.
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Asm tech aquired 70% stake in Forms and Gears four years back, it was just a manufacturing company at that point of time. Over these years under the able guidance of Asm tech they have evolved to become a diversified player in manufacturing and engg service catering to different segments like automobile, electronics product manufacturing etc.
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