Tokyo Electron Ltd.’s quarterly revenue dived 17%, as Asia’s biggest semiconductor gear-maker grappled with weakening investment in chipmaking during a global electronics slump.
(Bloomberg) — Tokyo Electron Ltd.’s quarterly revenue dived 17%, as Asia’s biggest semiconductor gear-maker grappled with weakening investment in chipmaking during a global electronics slump.
The company reported sales of ¥391.7 billion ($2.7 billion) in the June quarter, which missed expectations by a slim margin. It posted operating profit of ¥82.4 billion, just above estimates.
Tokyo Electron is an important link in the chipmaking supply chain, providing the machinery that Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Intel Corp. rely on for their advanced silicon products. The Japanese company said it expects strong momentum in investments around automotive and industrial applications, a trend that’s continuing from the prior fiscal year.
TSMC in July cut its annual outlook for revenue and postponed the start of production at its signature Arizona project to 2025, reflecting the way geopolitical tensions and a deep market slump are stoking uncertainty in the global chip arena.
Tokyo Electron also saw a slowdown in investment for advanced semiconductor manufacturing during the June quarter, but expects long-term trends like artificial intelligence development to buoy demand, it said in an earnings report on Thursday.
This year’s surge in demand for AI-training chips — which made Nvidia Corp. the world’s first trillion-dollar chipmaker — is not translating to an immediate boost for Tokyo Electron. The company said it sees AI helping its bottom line in the next fiscal year, starting in 2024.
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