The reason is clear: the trade conflict between the USA and China. Sanctions affect both European and Asian technology markets simultaneously.
Moreover, other Japanese chipmaking equipment manufacturers also agree with Tokyo Electron about the decreasing demand from Chinese companies. “Even demand for older technologies is falling, and we are seeing signs that investments are lagging,” said Fumiyuki Kanai, president of Japanese lithography machine maker Kokusai Electric.
At the same time, Tokyo Electron is seeing an increase in its revenue and net profit. Tokyo Electron Vice President Hiroshi Kawamoto said the company’s operating profit in the July-September quarter rose 54% year on year to 148 billion yen ($955 million), driven by investments in artificial intelligence and traditional chip production in China. But that was before the latest tightening of American sanctions against China.
“We are taking into account all possible risks, including the possibility of the United States tightening export controls against China,” Kawamoto said.
Source: Ferra
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
