DENVER, Colo. (247marketnews.com) — SCHMID Group (NASDAQ:SHMD) reached an agreement for an equipment order valued at more than €25 million to support a customer’s expansion of high-density interconnect (HDI) manufacturing capacity in Malaysia. The deal extends a long-standing technology partnership and gives the German equipment maker another foothold in Southeast Asia’s increasingly important electronics supply chain.
The opportunity goes beyond a single customer order. HDI technology enables increasingly complex printed circuit boards with denser electrical connections; an important capability as next-generation computing, networking and other advanced electronic applications demand greater precision and manufacturing reliability. SCHMID is positioning its specialized production equipment and process expertise to serve that growing need.
Chief Sales Officer Roland Rettenmeier said: “This significant agreement reflects the strength of our long-standing technology partnership and the continued confidence of leading industry players in SCHMID’s capabilities.”
The Malaysia agreement also arrives amid a broader pickup in business. In July, SCHMID announced a repeat order exceeding €37 million for advanced HDI multilayer and modified semi-additive processing equipment from a Chinese customer, supporting capacity expansion for AI server boards and optical modules. In June, the company reported more than €26 million in combined order intake since mid-May, driven by investments in AI infrastructure and optical communications. The latest agreement strengthens the narrative that demand for increasingly sophisticated electronics manufacturing is translating into substantial equipment opportunities.
The company’s October 21 business update adds further context: SCHMID reported preliminary third-quarter order intake of €67.8 million, raised its full-year order-intake guidance to more than €150 million, and reported an order backlog of €96.8 million at September 30. More than €7 million of the Malaysia agreement was already included in third-quarter order intake, with the remainder expected to be recorded in the fourth quarter.
There is, however, a crucial distinction between strong orders and strong profitability. SCHMID’s August guidance maintained expected 2026 revenue above €100 million but lowered its adjusted EBITDA margin outlook to 6%–9%, underscoring the execution and cost challenges that remain.
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