SCHMID Group N.V. (NASDAQ:SHMD) stock gained Monday after the company secured an order to supply critical wet-process equipment for South Asia's first glass core substrate manufacturing facility.

The order came from a U.S.-based advanced packaging company developing the facility to support next-generation artificial intelligence processors, high-performance computing and data centers.

SCHMID expects to include the order in its fourth-quarter 2026 order intake. The company did not disclose financial terms.

The Germany-based company provides equipment and process solutions for the electronics and semiconductor industries.

SCHMID had a market capitalization of $143.3 million as of Friday's close.

AI Chip Demand Drives Glass Substrate Expansion

Once fully operational, the facility is expected to produce about 70,000 glass panels annually, along with glass interposers and advanced 3D integration modules.

These products will support AI processors, data centers, 5G networks, and aerospace and defense applications.

SCHMID will provide specialized wet-process equipment for key manufacturing stages. These processes play a critical role in improving production yields, reliability and cost efficiency.

Glass core substrates offer advantages over traditional organic substrates as AI chips and advanced semiconductor packages become larger and more complex.

Roland Rettenmeier, SCHMID's chief sales officer, described the order as a key milestone in the industry's shift toward large-scale glass core substrate production.

He also highlighted South Asia's growing role in the global semiconductor supply chain.

SCHMID Sees Stronger Orders And Growing Backlog

The latest deal follows SCHMID's Oct. 21 business update, which showed stronger equipment demand.

Third-quarter order intake more than doubled to 67.8 million euros ($75.5 million), up from 30.7 million euros ($34.2 million) in the previous quarter.

The company's equipment order backlog reached 96.8 million euros as of Sept. 30. SCHMID also reported preliminary third-quarter revenue of 24 million euros.

For 2026, management maintained its revenue forecast of more than 100 million euros and an adjusted EBITDA margin of 6% to 9%.

SCHMID also raised its 2026 order intake forecast to more than 150 million euros from its previous range of 125 million euros to 150 million euros.

SHMD Price Action: SCHMID Group shares were up 20.93% at $2.60 at the time of publication on Monday, according to market data.