SÜSS MicroTec (SMHN) CMD 2025 summary

Market outlook and technology trends

• The global semiconductor market is projected to reach €1 trillion by 2030, driven by AI, connectivity, and a 7% CAGR, with advanced packaging and wafer cleaning fueling innovation.

• Advanced backend and heterogeneous integration markets are growing rapidly, with backend segments seeing up to 32% CAGR and advanced packaging wafers at 10% CAGR.

• AI and hyperconnectivity are expected to significantly increase DRAM wafer demand, especially from AI servers.

• Demand for both high-end and mature node photomasks is expected to rise, supporting a hybrid strategy across technology nodes.

• ESG and green process solutions are increasingly important, with active efforts to reduce product carbon footprint, hazardous materials, and a goal of net-zero emissions by 2050.

Strategic initiatives and product roadmap

• Major product launches are planned for 2026–2027, including Master Smart Cleaning, ASX 9500, GreenTech wafer cleaning systems, MaskTrack SMART Cleaning, and Green Track 200 LVM, targeting high-end and mature nodes.

• New product introductions focus on photomask cleaning, wafer cleaning, hybrid bonding, inkjet coating, and UV-Scanner technologies.

• Modularization, platform strategies, and standardization are being implemented to reduce complexity, improve margins, and enable flexible manufacturing.

• Strategic partnerships with chipmakers and research institutes, and inorganic growth through targeted M&A, are emphasized to drive innovation.

• Service business is set to expand from 15–18% to 25% of sales by 2030, leveraging a large installed base and high-margin contracts, with a focus on customer-centric service innovations and predictive maintenance.

Financial guidance and growth targets

• Sales ambition for 2030 is €750–900 million, implying a 9–13% CAGR from 2025, outpacing the 7% market growth.

• Gross margin targeted at 43–45% and EBIT margin at 20–22% by 2030, with significant improvements expected from new products and operational efficiencies.

• Free cash flow is expected to triple by 2030, with operating cash flow reaching ~€100 million.

• R&D spending to rise to 11% of sales by 2030, with €360–380 million planned for innovation and infrastructure between 2026 and 2030.

• Dividend policy aims to distribute 20–40% of consolidated free cash flow, with potential for buybacks or targeted acquisitions if strategic fit is ensured.