ASM Technologies - Engineering innovation

Amazing details for RV forms and gears here.

imtex-8.pdf (2.7 MB)

Key points.

  1. Building high precision, large sized complex fixtures was our major core competency in the past. Recently our majority of income is generated from high precision, mid and small size fixtures for the electronics and semiconductor equipment industries.

  2. Exploring the possibility of starting operations in Mexico or USA in 2023-24.

  3. We have put up 3 plants in Guindy, chennai, we are now putting up a large fourth plant in sriperumbudur area, chennai. Here we are planning to add 100 machine capacity. This capacity will be mainly for electronics and semiconducor equipment industries.


Rv forms had only two manufacturing units till recently as per our information , Now they are saying they have setup a third unit and planning for a large fourth unit. This may be in line with four phase expansion outlined in the AR -2022. We have not seen a growth in manufacturing revenue in line with these expansions. Company continue to do 15 cr revenue rate per annum while RM expense have increased substantially. Hopefully we might see growth in mfg revenue now onwards.

Happy and excited to know that company is saying majority of their income now comes from electronics and semiconductor segments. These are segments which offers high growth potential and having high entry barriers.


This is an excellent video on semiconductor industry.

US investing in their manufacturing after a gap of 20 years, Re-shoring and Nearshoring should open up big opportunity for indian companies.


I love this point that you highlighted. India is rapidly growing as a destination for manufacturing at all stages of the electronics industry value chain (ex: more iPhones being made in India), and Forms and Gears is smartly positioning itself to take advantage of this shift. Also geographically, they’re well situated to serve their clients well, as Tamil Nadu is an established (and growing) electronics manufacturing hub.

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Poor results from Asm tech.

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I am waiting for the next quarter and AGM to update my thesis regarding ASM.

ASM Technologies (and by extension Forms and Gears) has a very strong footing in Tamil Nadu and Karnataka, and the Chennai to Bengaluru belt is turning into a robust electronics manufacturing hub, and they are primed to take advantage of the opportunities in these two states.

With a presence in Western India, with the new Pune office, I am expecting to hear about big client wins. If they do not have a good client roster in Western India by the time of the AGM, I will question the decision to set up an office there.

There are long lead times and long sales cycles for specialized equipment in the semiconductor industry. However, it has been about a year since the JV with Hind High Vacuum was launched, and I expect to see some traction by the time of the AGM as well.

To summarize, ASM is sitting on a goldmine of three opportunities: workholdings/fixtures for the electronics industry, a new catchment area in Western India, and a semiconductor industry that’s in the limelight. All that matters now is how they execute.


Notice Number.

the fully paid rights shares have been allowed to trade from today.

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ASM Tech AGM 2023

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AGM Notes .

Overall seems like this company on transformation phase from a service provider to a DLM player.

Some of the points discussed are given below.

  1. DLM will grow to become 40%-50% of overall business from current 15% in next 2-3 years.

  2. Current revenue mix

Hitek (semicon+electronics) 45%
Auto mobile 20%
IT 20%

  1. In Semi/electronics space we don’t have any competitors in India, in automobile there are many players.

  2. Working with many EV players, beginning to scale these segment now. Working with iisc for some products in autonomous vehicle, we will talk about it after reaching the RnD to some level. Also in the process of building some equipment’s for EV.

  3. Additive manufacturing we do it for last few years and have plans for it

  4. We works with no 1 and no 2 players in semicon equipment space. Cannot disclose names and other details as we have NDA with them.

  5. No slowdown/recession in the segment we operate we see many opportunities emerging in the areas. Conservatively we will do 20% revenue growth for next few years. Without any inorganic and major product wins.

  6. Asm ventures : a) Lavella, airtel planning to aquire more stake it is doing well and became largest sdwan company in the country. b) Eclectic : We developed some cyber security products for manufacturing industries after partnering with them. This is getting some traction now.

  7. 120-130 products under qualification process some are through and some are at trial stages. Normally it takes 6 to 24 months for the entire process. We have been spending lot of money for these processes in last 2-3 years.

  8. Forms and Gears running at over all 40-60% capacity utilization. old plant running at 60% and two new units are running at 40% And further expansion is considering in next few months. Turn around should happen in this year.

  9. Semicon JV : Couple of equipment’s we are building we will be able to talk about only after some level. Industry is at inflection point in India and globally.


While all these points are promising, their profitability is eaten up by loss making foreign subsidiaries. What is the promoter alongwith management doing about it?

Ner profit at standalone level is 16cr while consolidated net profit is 7cr.

Also, I hope they have some positive development from the Semicon event held at Gujarat.

Disclosure: not a buy,hold or sell recommendation. Just my opinion.

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ASM Tech aquires semcon uk this time, intresting commentary from semcon regarding the divestment.

“Our engineering activities in the UK within the business area Engineering & Digital Services
need to be scaled up in order to ensure delivery capacity and long-term profitability. We
have reviewed different options and concluded that our best option is to divest the UK
engineering operations to one of our partners, ASM Technologies, which already has a
presence in the UK. This transaction will be to the benefit of our customers and employees
within this segment in the UK while allowing us to focus on other prioritized growth areas,”
says Markus Granlund, President and CEO of Semcon.

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Fund raisal in ASM Tech.

Out of the total amount of 169 cr , more than 50% is invested by promoter himself.
Rest is arranged by ace investor Mukul Mahavir Agrawal.

Reason for the fund raisal is not clear ,we can assume that this may be used for the capex in semiconductor JV.


As per EXPLANATORY STATEMENT attached to board resolution for fund raise , purpose of the fund raise is -
“upto Rs. 130 Crores towards funding organic and inorganic growth opportunities and
strategic acquisitions including but not limited to mergers and takeovers, acquisition by
Slump Sale etc. or acquisition of any business undertaking on going concern basis or
acquisition through SPA directly by the Company or through its subsidiaries or Joint ventures
or associates as approved by the Board from time to time”
So it looks like some acquisition is on cards.


Asm tech EGM updates.

  1. We are planning an acquisition in design led manufacturing - semiconductor space. This will be an extension of what we already doing in semiconductor. This will be done at JV level and we will be disclosing more details very soon about this.

  2. Client consolidation affected the growth in EnggRnd service space this year. One large client planning to give more orders which was delayed, some of the low value added works have been stopped by them.

  3. Forms and Gears turnaround performance can expect from next year, lot of qualifications and certifications done this year, most of these new product developments are happened in a sunrise sector - electronics mobile phone manufacturing.

  4. We are verifying various optionalities in PLI and state level incentives etc.

Recent credit rating report gives some idea about the revenue de growth in the current FY.


Thank you for the summary, @shanid

I am very keen to hear the details of this acquisition. When it comes to ASM Technologies, I have always been a big believer in the strong moat that they have in the semiconductor equipment design space, which no other Indian ER&D or IT services company has managed to create. As the pure design practice keeps transitioning to more of a true design led manufacturing practice, I want to see what role this acquisition will play.

In an ideal world, I would like to see ASM Technologies (through the JV with Hind High Vacuum) design, manufacture and sell its own equipment, systems and sub-systems for semiconductor manufacturing.

Disclosure of holding: I kept buying shares in ASM Technologies from 2021 to 2023, with an overall cost basis of ₹227. I have a fairly concentrated portfolio and do not own more than 10 companies at any given time.


Hello everyone,

I am always trying to poke holes in any investment/investment thesis that I have. In that spirit, when a friend mentioned Mindteck to me recently, and highlighted how it had exposure to the semiconductor industry, it piqued my curiosity and I decided to give it a good look.

The main reason I looked at Mindteck was to determine how its capabilities compared to ASM Technologies, a long term and sizeable bet in my portfolio.

After reviewing Mindteck’s recent Annual Reports, Investor Presentations and AGM minutes, I have come to the following conclusions below:

• Mindteck has expertise in developing supporting software (apps, databases, etc.), and control systems (including factory automation systems) for semiconductor industry operations. In its filings, the company doesn’t explicitly mention client names, but is more open about project details when compared to ASM Technologies. Semiconductor industry clients include capital equipment manufacturers, subsystems vendors and fabs

• ASM Technologies also develops supporting software and control systems. However, unlike Mindteck, the company has capital equipment and process design expertise as well. This includes the prototyping and now even manufacturing (courtesy of its JV with Hind High Vacuum) of systems and subsystems that are critical to the semiconductor industry. The company is more cagey about project details, but from what little I can gather, the company’s client base is limited to semiconductor industry capital equipment manufacturers. If the manufacturing of its own equipment (either to capital equipment manufacturers or directly to fab operators) takes off, then this will be a huge win

• Process design, along with subsystem and system design, prototyping and manufacturing (whether it’s proprietary or as a contract manufacturer) is going to be a much harder domain for potential competitors to break into here in India, versus software and control system development

• Hence as far as the semiconductor domain is concerned, as it stands, if I were to pick just one company, I intend to stick with ASM Technologies

Curious to hear what others here think about the ASM vs Mindteck comparison, specifically as it pertains to their capabilities in the semiconductor domain.


Purpose of this note
ASM Technologies is still a high conviction bet in my fairly concentrated portfolio. Prior to the elections, I intend to do a high-level scan of the semiconductor industry, as it stands, to determine whether I should keep holding onto ASM, or whether there are better ways to play the semiconductor game in the listed space. This list of companies below is not exhaustive, and if folks can find listed companies that can pose a serious challenge to ASM Technologies, please let me know.

ASM Technologies
ASM Technologies is an ER&D and design led manufacturing company operating in a variety of sectors, including the (now in vogue) semiconductor space. On its website it highlights the following:

“ASM has over 2000+ Person years of experience in serving reputed Semiconductor Equipment Manufacturing Companies. ASM has the expertise and understanding of design and development of System and Sub Systems of PVD, CVD, RTP, Etch, CMP and Inspection tools.”

To cut a long story short, ASM has the ability to create software and control systems for semiconductor capital equipment manufacturers. In addition, it also has process design, as well as equipment design expertise in this sub-domain. Courtesy of its JV with Hind High Vacuum, it also has the precision engineering capabilities to manufacture semiconductor industry equipment. This includes both entire systems and individual sub-systems.

The company held an EGM in March 2024, where they announced a potential acquisition in the semiconductor equipment manufacturing space, which would be done at the JV level. In addition, let us not forget the proposed ₹170 cr preferential allotment (₹38 cr equity shares, and ₹132 cr warrants), in which Mukul Mahavir Agrawal is playing a critical role (nearly ₹72 cr), and the promoters are also participating (primarily with warrants). Long story short, I am a fan, and I intend to find another company that can match ASM.

I am connecting dots into the future here, but initially, the company can work as a contract manufacturer of sorts for semiconductor equipment manufacturers. However, over time, I see a scenario where ASM can start manufacturing customized equipment of their own, which they can sell directly to semiconductor plant operators, while the larger equipment manufacturers focus on off-the-shelf models, but still take advantage of ASM for contract manufacturing work.

Finally, in a world where there are multiple players designing, optimizing and manufacturing chips, I want to focus on the entities designing/selling the equipment that’s required to make this all happen. In short, during a gold rush, I want to bet on the entity selling shovels, not an individual miner.

CG Power & Industrial Solutions
CG Power & Industrial Solutions is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services and solutions in two main business segments, viz. Power Systems and Industrial Systems. The company’s stock price has increased considerably since it become a Murugappa Group company.

CG, a part of Tube Investments of India Limited and the Murugappa Group, Renesas Electronics Corporation (Japan) and Stars Microelectronics (Thailand) Public Co. Ltd., recently signed a joint venture agreement to build and operate an OSAT (Outsourced Semiconductor Assembly and Test) plant in Sanand, Gujarat. The ownership percentages will be 92.3%, 6.8%, and 0.9% respectively. The JV plans to invest 7600 cr over a five-year period, with a capacity that will ramp up to 15 million units per day.

While this is promising news, OSAT plants are not the same thing as semiconductor fabs, and serve a supporting role after integrated circuits (ICs) are manufactured/fabricated. Additionally, at this stage, I cannot comment on what the revenue contribution from this JV will look like, and given the massive run-up in CG Power’s share price, I worry about the margin of safety.

MIC Electronics
As per its website, MIC Electronics Limited is a global leader in the design, development & manufacturing of LED Video Displays, high-end Electronic and Telecommunication equipment and development of Telecom software since 1988. An ISO 9001:2008 & ISO 14001:2004 certified, it has a marked presence in the highly dynamic domains of:

• LED Video, Graphics and Text Displays
• LED Lighting Solutions
• Embedded, System and Telecom software
• Communication and Electronic Products

This company’s exposure to the display space piqued my interest. However, I personally am not qualified to determine if they have any unique expertise here. Additionally, much larger players are lining up to get approvals and incentives to set up LCD display manufacturing units in the country, and looking at MIC Electronics’ 10-year revenue trend, I am not bullish about the company’s prospects.

Mindteck (covered previously, but recapping over here)
Mindteck has expertise in developing supporting software (apps, databases, etc.), and control systems (including factory automation systems) for semiconductor industry operations. In its filings, the company doesn’t explicitly mention client names, but is more open about project details when compared to ASM Technologies. Semiconductor industry clients include capital equipment manufacturers, subsystems vendors and fabs.

Process design, along with subsystem and system design, prototyping and manufacturing (whether it’s proprietary or as a contract manufacturer) is going to be a much harder domain for potential competitors to break into here in India, versus software and control system development. Since Mindteck is primarily focused on the software and control systems aspect, I will give the company a pass.

MosChip Technologies
This is a very interesting company. In the semiconductor space, MosChip offers turnkey analog, digital and mixed-signal ASIC (Application-specific integrated circuit) and IP (intellectual property) design services. With an overall unparalleled tape out expertise on more than 200 multi-million gate ASICs with stringent power and speed requirements, taping out designs in all leading foundries in process nodes all the way from 500nm to 7nm, and with time tested and proven methodologies/flows using leading EDA (electronic design automation) tools, MosChip has emerged a leading semiconductor design services house providing expert Spec to GDSII services for customers globally. MosChip has been building its own digital IP and analog IP over the years. Over the past 2 decades, MosChip has developed and shipped millions of connectivity ICs. MosChip has expertise in Serdes (serializer/deserializer) designs and its 6G and 10G Serdes designs are production ready.

Moschip has additional feathers in its cap. It is part of TSMC’s DCA (design centre alliance), and has been shortlisted for the Government of India’s HPC (high performance computing) project.

There are is a lot of terminology in here, but in my estimation, Moschip is a fabless engineering services company that helps clients design and optimize their integrated circuits (chips). The company’s website and investor relations page has definitely improved over the last few years, and management has mentioned that a ramp up in revenue is on the cards. This is all good news, but with the company trading at around 10x revenue, and the fact that I would rather bet on the shovel maker/designer, I still like ASM Technologies.

RIR Power Electronics
In the semiconductor devices domain, RIR Power Electronics manufactures low and high-power semiconductor devices like diodes, thyristors modules, and bridge rectifiers by processing chips from 28mm to 125 mm in diameter.

The company made headlines with the Odisha government’s approval to invest ₹511 cr in the establishment of a state-of-the-art fabrication and packaging facility for SiC (silicon carbide) devices.

I do not know enough about RIR’s semiconductor device manufacturing expertise to comment how they would perform in a very competitive environment. Additionally, with the company currently trading at over 20 times revenue, I worry about the margin of safety.

SPEL Semiconductor
SPEL is a pioneer the Indian OSAT market. SPEL is a trusted & strategic contract manufacturing partner for many of the world’s leading Semiconductor companies. SPEL provides full turnkey solutions that include Wafer sort, Assembly, Test and Drop-shipment services which help Customers accelerate time-to-revenue for their new products. SPEL also offers value added services such as Package Design, Failure Analysis and Full Reliability Test, Test Program Development & Product Characterization.

So, this company also is in the OSAT portion of the semiconductor industry value chain, well outside my preferred area of interest (semiconductor industry capital equipment). Additionally, given how much larger players like CG Power and Micron are entering this space in India, I worry about SPEL Semiconductor’s prospects. Their 10 year revenue trend is a cause for concern.

Titan Engineering and Automation Limited (subsidiary of Titan Company)
TEAL, a wholly-owned subsidiary of Titan Company, was born as the in-house engineering team dedicated to high precision component manufacturing and designing manufacturing automation machines. The company now caters to external clients as well, and has over 500 employees in two divisions – Manufacturing Services and Automation Solutions.

Its solutions span Aerospace, Defence, Transportation, Electrical & Electronics and Medical sectors. Driven by its ambition to be a significant global player, it now provides solutions in over eighteen countries, including Germany, France and the USA.

What caught my attention was an article from December 2023, where the company said that it would spend ₹220 cr to ramp up its fab component unit. The company started supplying components in 2022 and may probably be the first Indian company in the supply chain for semiconductor wafer fab equipment. So while ASM was focused on design and optimization (and maybe some prototyping) back then, TEAL was already in the manufacturing game.

The CEO, NP Sridhar added, “We are now making 200-250 components required for our semiconductor manufacturer client. We have invested Rs 30-40 crore already in setting up processing lines and a 1,000-class cleaning room.” He declined to name the client, citing a non-disclosure agreement.”

Additionally, as of last week, Apple is in the final stages of discussions with Murugappa Group and Tata group’s Titan Company (specifically TEAL) to assemble and possibly manufacture sub-components for iPhone camera modules, according to a report by The Economic Times. This move could increase Apple’s dependence on the Indian supplier ecosystem for its products as it continues to shift operations away from China.

In FY2023, TEAL had a revenue of ₹510 cr and an after-tax profit of ₹21 cr. I mention this because compared to Titan’s total consolidated TTM revenue of nearly 49,000 cr, these numbers are a drop in the bucket, and TEAL’s revenue would have to increase by an order of magnitude to meaningfully impact Titan’s stock price. Therefore, even though the company is showing promise in the semiconductor equipment manufacturing space, as well as high-end electronics manufacturing, I still like ASM Technologies more, especially given the higher consolidated revenue contribution that semiconductor industry work would bring, as well as ASM’s many more years of experience in this domain. However, I would like to point out that TEAL has a headstart in actual equipment manufacturing, and should TEAL be spun off and listed, then its valuation could meaningfully move higher.

Disclosure of holding: I kept buying shares in ASM Technologies from 2021 to 2023, with an overall cost basis of ₹227. I have a fairly concentrated portfolio and do not own more than 10 companies at any given time.


Hi @ankit_george semiconductor has given a good run up and I have recently started tracking asm, would love to have your opinion on recent developments.

disclosure: Invested in asm

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Hi @aastar98 . Regarding ASM, please bear in mind that anything I say is coming from someone with a low cost basis (227), who therefore has the luxury of a good margin of safety.

Other than what I have already mentioned above, please take a moment to go through the details of the 170 cr preferential allotment that was announced a few months ago.

The semiconductor space is clearly in vogue, but it remains to be seen which Indian listed companies in this sector will actually perform in the long term. However, the fact that Mukul Mahavir Agrawal is making such a sizeable investment in ASM Technologies is something that keeps me optimistic. In addition, the promoters are investing even more than he is into the company as well.


Hi @ankit_george @shanid any idea about the AGM. Any video link? Or do u have any summary of the AGM. If so please share it.

Thanks in advance.

Not many things were discussed in AGM.
Overall they are saying lot of NDA with suppliers, so they cannot disclose many of the things.
One interesting development was founder of HHV also spoke during AGM on behalf of the joint venture company, he was saying lot of product qualifications are going through and they will scale up manufacturing once these things are completed. Rabindra said Forms & Gears doing trials for Aerospace industry, this is a new segment company trying to enter.