Tokyo Electron Hikes Outlook Despite China Chip Sanctions

Tokyo Electron, a leading semiconductor equipment manufacturer, has announced a better-than-expected outlook for the fiscal year ending March 2023, despite the ongoing impact of China’s chip sanctions.

The company reported a net profit of 102.5 billion yen ($928 million) in the nine months to December, up from 51.5 billion yen a year earlier. Sales increased 34% to 823.5 billion yen, boosted by strong demand for equipment used in the production of semiconductors, flat-panel displays and solar cells.

Despite the positive results, the company noted the ongoing impact of China’s chip sanctions, which have affected the industry as a whole. The sanctions, which were imposed last year, restrict Chinese companies from buying high-end chip-making equipment from Japan and other countries, in an effort to promote China’s domestic chip industry.

Despite this, Tokyo Electron raised its full-year net profit forecast to 135 billion yen from a previous estimate of 120 billion yen, citing strong demand for its equipment from customers in other regions. The company also raised its sales forecast to 1.09 trillion yen from 1.03 trillion yen.

In a statement, Tokyo Electron acknowledged the challenging market conditions, but expressed confidence in its ability to adapt to changing circumstances. “We are constantly exploring ways to enhance our competitiveness and maintain our leadership position in the industry,” the company said.

The news comes as Japan, the United States and other countries are taking steps to address the global semiconductor shortage, which has been exacerbated by the Covid-19 pandemic and other factors. The shortage has disrupted supply chains and led to increased demand for equipment used in semiconductor production.

Overall, Tokyo Electron’s positive outlook suggests that the semiconductor industry may be well positioned to weather the ongoing challenges and continue to drive growth in the global economy.

Leave a Reply

Your email address will not be published. Required fields are marked *