Tokyo Electron President Toshiki Kawai expressed confidence that Chinese semiconductor equipment manufacturers cannot close the technology gap despite receiving billions in government funding, citing his company’s superior development pace and customer relationships.
Kawai emphasized collaboration with contract chipmakers gives Tokyo Electron access to cutting-edge wafers and processes, allowing faster innovation than Chinese competitors. The executive highlighted decade-long technology roadmaps shared with major device manufacturers, covering four generations of semiconductor processing advances.
Chinese equipment makers AMEC, NAURA Technology, and ACM Research reported record 2024 revenues, with AMEC forecasting ¥9.1 billion ($1.24 billion) in sales. NAURA, China’s largest equipment supplier, projected revenue between ¥27.6 billion and ¥31.8 billion ($4.4 billion), approaching levels of global leaders.
Tokyo Electron plans investing ¥1.5 trillion ($10 billion) in research over five years while hiring 10,000 engineers. The company received 25,000 applications for 500 graduate positions, indicating strong talent attraction despite stock price concerns.
China’s share of Tokyo Electron’s business declined from 40% to around 30%, with AI-related equipment demand offsetting the reduction. Kawai downplayed US tariff risks, noting America represents just 8% of sales with yen-denominated transactions limiting currency exposure.
China’s semiconductor equipment self-sufficiency rate reached 13.6% in 2024, with projections of 50% by 2025, suggesting Kawai’s confidence may face serious testing.
