HomeFor Japan's equipment maker Tokyo Electron, Chinese customers remain terribly frustrated

For Japan’s equipment maker Tokyo Electron, Chinese customers remain terribly frustrated

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The Japanese company Tokyo Electron is Asia’s largest lithographic equipment supplier. In spite of the addition of new restrictions, Chinese customers can continue to cooperate with the government.

Source: Tokyo Electron.

According to Bloomberg, the CEO of Toshiki Kawai saw an inflow of funds from Chinese clients; that trend will not subside, he believes. Chinese customers are continuing to demand for chips from Tokyo Electrons in the coming years. In fact, in the second quarter, the Chinese consumer accounted for 39 % of the Japanese manufacturing total.

Without warning, Tokyo Electrons’ new restrictions on the supply of equipment by Japan to China announced beginning July did not impact directly on the business. The company’s revenues were up from 77% to 111.8 billion, but management tends to blame the global downturn in the electronics market — and does not propose to revise its revenue guidance for the current year. In addition to demand from Chinese customers, revenues will be supported by the automotive and industrial segments of the chip market. According to the representatives of Tokyo Electron, Chinese customers readjusted their strategy before a long time, despite the worsening sanctions.

On the other hand, Tokyo Electron hasn’t reached the demand for equipment in order to produce chips used in artificial intelligence systolics. If this is the product that is satisfied with this factor, it won’t appear until April next year, as it is thought to be. According to this equipment supplier, the chip market fell on demand in the last quarter. She’ll recover.

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