SÜSS MicroTec (SMHN) investor relations material

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 hybrid bonding blurring front-end and back-end boundaries.

• Advanced backend and heterogeneous integration markets are growing rapidly, with 2.5D/3D packaging and wafer cleaning segments showing CAGRs of 14%, 32%, and advanced packaging wafers at 10%.

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

• Geographic sales mix is diversifying, with China’s share expected to normalize to 15% by 2030, and growth anticipated in Americas, EMEA, and Southeast Asia.

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

Strategic initiatives and product roadmap

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

• Service business is a key focus, aiming to grow from 15–18% to 25% of sales by 2030, with high-margin service contracts, upgrades, and predictive maintenance.

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

• Outsourcing, supply chain localization, and operational excellence, including a new factory in Zhubei, are being expanded to increase flexibility and cost efficiency.

• R&D spend will rise to 11% of sales by 2030, with €360–380 million planned between 2026 and 2030, supporting innovation in wafer cleaning, hybrid bonding, and inkjet printing.

Financial guidance and growth targets

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

• Gross margin is targeted to rise from 35–37% in 2025 to 43–45% by 2030, with EBIT margin reaching 20–22%.

• Service revenue is expected to reach €190–225 million by 2030, with gross profit margins of 50% in this segment.

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

• CapEx for 2026–2030 is planned at €100–120 million, including a major application center investment of around €45 million in 2027–2028.