Tokyo Electron Ltd. has revised its revenue and earnings forecasts for the entire year in response to increased demand for its chipmaking equipment, largely driven by the Chinese market. The company reported quarterly revenue of $2.8 billion, with sales in China surpassing analyst estimates and accounting for nearly half of the total.
The tech firm raised its full-year sales forecast to $1.73 trillion, citing strong performance in China, which saw a record 43% increase in sales in the September quarter. Tokyo Electron holds over 90% of the photoresist coating and development instrument industry, reflecting chipmakers’ expanding aspirations.
Hiroshi Kawamoto, general manager of Tokyo Electron’s finance division, affirmed the strong Chinese investment in mature-node chips such as power semiconductors and automotive chips. According to the company, China’s market sentiment is robust, and this positive trend is expected to continue.
Despite a 60% decline in quarterly operating profit, Tokyo Electron reported an operating income of $401 billion for the year ending in March, surpassing analyst projections. The business is cautiously optimistic about the semiconductor market’s recovery and foresees a surge in AI-training chip sales beginning next year.
In other news, Japan plans to invest approximately $13 billion in cutting-edge AI and semiconductor technologies to advance its technology sector. Part of this funding will go towards supporting companies like TSMC, which is set to build another semiconductor factory in Kumamoto.
The investment aims to address supply issues and global political hurdles, signaling Japan’s commitment to leading in semiconductor production. The move will attract investments aimed at producing high-end chips for future technologies like smart AI and self-driving cars, strengthening Japan’s position in the industry.
Furthermore, the establishment of a Japanese chip manufacturer to compete with industry giants like TSMC and Samsung Electronics Co. is a challenging endeavor set to be undertaken by the company Rapidus. The goal of the government-backed project is to build a cutting-edge foundry by 2027, thus bolstering Japan’s economy by providing reliable labor.
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