Reading between the lines, through this JV, ASM will be able to not just offer design expertise, but also provide equipment sub systems to longstanding clients like Applied Materials. If I remember correctly, their relationship with Applied Materials is over 10 years long.
Additionally, while Applied Materials, Lam Research, etc., may only be willing to provide off-the-shelf equipment to semiconductor plant operators, since they are large scale manufacturers, this then creates a whitespace for ASM to supply customized equipment directly to operators, instead of just being a supplier to a supplier.
While this potential exists, all that matters is whether the company can actually win business.
Additionally, while I was thrilled about a $3B semiconductor plant coming up in Mysore, there’s now the possibility of a $22B investment to build a semiconductor and a display plant in Maharashtra, courtesy of a JV between Vedanta and Foxconn. So ASM is in the right place, at the right time.
Fingers crossed, and cautiously optimistic!
See the details of the Vedanta-Foxconn announcement here
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