Tokyo Electron Ltd. posted a 41.2% jump in quarterly sales, fueled by strong demand for semiconductor equipment used in artificial intelligence processors and memory chips.
The Tokyo-based company reported revenue of yen 654.5 billion ($4.4 billion) for the third quarter ended December 31, with operating profit soaring 50.7% to yen 199.6 billion. The results exceeded market expectations, driven by increased equipment orders from chipmakers investing in advanced technologies.
China remained the largest market, accounting for 42.7% of sales, while Taiwan and South Korea contributed 18.3% and 17.5% respectively. The company secured key manufacturing certifications for its latest etch and deposition equipment used in advanced chip production.
Looking ahead, TEL forecasts the global wafer fab equipment market to remain flat at around $110 billion in 2025, citing reduced investment from automotive semiconductor makers and Chinese manufacturers. However, the company expects demand for AI server-related equipment to offset the slowdown.
To boost production capacity, TEL announced plans to invest yen 170 billion in capital expenditure for fiscal 2025, including a new yen 104 billion manufacturing facility in Miyagi Prefecture scheduled for completion in 2027.
