Tokyo Electron raised its full-year profit forecast as semiconductor manufacturers boost spending on equipment for artificial intelligence chips and advanced packaging technologies.
The world’s second-largest semiconductor equipment maker now expects operating profit of 680 billion yen ($4.5 billion) for the year ending March 2025, up from its previous estimate of 627 billion yen. Sales are projected to reach 2.4 trillion yen, marking a 31% increase from the previous year.
The Tokyo-based company reported second-quarter operating profit jumped 54% to 148.1 billion yen, while revenue rose 32% to 566.5 billion yen. AI-related sales are expected to exceed 600 billion yen this fiscal year.
Chief Executive Officer Toshiki Kawai said customer demand for AI server production equipment has grown 1.5 times year-over-year, now accounting for about 15% of the wafer fab equipment market. The company sees double-digit growth in 2025 equipment spending as chipmakers invest in new technologies like high-bandwidth memory.
To return cash to shareholders, Tokyo Electron announced a 70 billion yen share buyback and raised its annual dividend forecast to 571 yen per share from 519 yen.
