Tokyo Electron Raises Profit Forecast on Strong China Chip Demand

Tokyo Electron has increased its profit forecast for the year, now expecting a profit of $4.3 billion, an 8% increase from its previous prediction. This follows better-than-anticipated sales, particularly driven by demand from Chinese semiconductor manufacturers. Despite this positive outlook, the company`s stock has declined since April due to concerns about US export restrictions on technology to China, a significant market for Tokyo Electron. While the company has not observed any immediate signs of stricter regulations, it continues to monitor the situation. A notable factor impacting Tokyo Electron is its dependence on the Chinese market, which has increased as orders from major customer Intel have decreased. Similar to ASML Holding NV, Tokyo Electron holds a crucial position in the chipmaking industry, and its business is influenced by US efforts to control the flow of advanced technology to China.