HK Stock Market Move | ASMPT (00522) has risen by over 7%. The company announced the divestment of ASMPT NEXX to focus on backend packaging business.

ASMPT (00522) rose by more than 7%, rising by 6.98% as of the time of writing, reaching 174.7 Hong Kong dollars with a trading volume of 2.43 billion Hong Kong dollars. In terms of news, Applied Materials will acquire ASMPT's NEXX large-area advanced packaging deposition equipment business, involving a total price of $120 million in cash. ASMPT stated that the group has decided to divest the target company from the semiconductor solutions sector through a sale, which will help the group to focus more on backend packaging business. Huaxin Securities pointed out that they are optimistic about ASMPT's leading position in advanced packaging technologies such as Thermo-Compression Bonding (TCB), riding on the trend of domestic self-controllable supply chain in China. They believe that ASMPT can solve the high-precision interconnect pain points in the mass production process of domestic chip manufacturers such as Huawei HiSilicon and Yangtze Memory, and therefore benefit from the huge equipment procurement dividend brought by China's independent development of computing and storage capabilities.