German chipmaking tools manufacturer Aixtron on Thursday forecast further revenue growth for 2024, driven by growing in demand for its new products used in the production of compound semiconductors. The company, which supplies deposition equipment for chipmakers, sees 2024 revenue in a range of 630 million to 720 million euros ($683 million to $780 million). Its revenue grew 36 per cent to 629.9 million euros last year.

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The company - whose end markets include e-mobility, renewable energies, and infrastructure such as data centres - also forecast an operating profit margin of 24 per cent to 26 per cent and a gross margin of 43 per cent to 45 per cent for the current year. Its fourth-quarter revenue beat market expectations at 214.2 million euros, boosted by continued high demand for its efficient power electronics based on gallium nitride and silicon carbide technologies.

Analysts were expecting quarterly revenue of 207.6 million euros, a company-compiled poll showed. Aixtron last September introduced its new G10-GaN technology, which it said will reduce production costs more than 25 per cent per wafer compared with previous products. It said in October this technology should bring in more than half of the group's GaN revenue in 2024. For the first quarter, revenue is expected in the range of 100 million to 120 million euros, the company said on Thursday.

Aixtron reported a 23 per cent rise in fourth-quarter net profit to 61.7 million euros, slightly above expectations of 59.6 million. Other semiconductor equipment suppliers including Dutch-based ASML, BE Semiconductor and ASM International have also reported upbeat quarterly results as chipmakers expand their capacity to meet growing demand. Aixtron proposed a dividend of 0.40 euro per share for 2023, a 29 per cent increase compared to the previous year.