Tokyo Electron expects profits to fall as chip makers delay investments, ET Telecom

Sub Levels

Tokyo Electron, Japan’s semiconductor equipment giant, said Thursday it expects profits to fall by more than a third from record highs as customers slow down investment in new fabs.

The company expects operating profit to fall 36% to 393 billion yen ($2.91 billion) in the 12 months ending March 31, compared with the average of 444 billion estimates of 21 analysts surveyed by Refinitiv. below the yen.

Major semiconductor makers such as Taiwan’s TSMC (2330.TW) cut investment levels this year, expecting a slowdown in the global economy to dampen demand.

Tokyo Electron CEO Toshiki Kawai said the Japanese government’s restrictions on advanced equipment could also affect the company’s performance, but the company is still evaluating the scope of the new regulations. rice field.

continued below

“We will be watching closely to see if there is an impact,” he said at a press conference. He added that China is an important market for the company and that there is a growing demand for less sophisticated equipment that is not subject to regulation.

In March, Japan announced export restrictions on 23 types of semiconductor manufacturing equipment starting in July, aligning technology trade controls with U.S. policies restricting China’s ability to make advanced sub-14-nanometer chips.

The nanometer, or billionth of a meter, refers to technology in the semiconductor industry, and generally smaller nanometers mean more advanced chips.

  • Published May 11, 2023 at 5:38 PM IST

most read devices

Join a community of over 2 million industry professionals

Subscribe to our newsletter for the latest insights and analysis.

Download the ETTelecom app

  • Get real time updates
  • save your favorite articles

Source link

Leave a Reply

Your email address will not be published.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