Tokyo Electron will significantly increase its R&D spending from fiscal 2024 (April 2024 to March 2025) to fiscal 2028. R&D expenditures will reach JPY1.5 trillion (US$10 billion), up 80% from the past five fiscal years, and the workforce will expand by 10,000 during the period. Furthermore, Capex will reach JPY700 billion, a 90% growth from the past five years.

Tokyo Electron's top five customers, including Intel, TSMC, Samsung Electronics, SK Hynix, and Micron, account for about 55% of the company's revenue.

Tokyo Electron holds the first or second market share in several chipmaking tool processes, particularly the coater developer for EUV lithography, where Tokyo Electron enjoys a 100% share. Tokyo Electron, which saw market valuation more than double in a year, is among the beneficiaries amid the AI investment hype.

Now, Tokyo Electron believes it is on the verge of a growth spike, with demand for artificial intelligence chips set to lift its overall sales by 20% to YEN 2.2 trillion (USD 14.1 billion) in the year to March.

Which explains why the firm is setting aside YEN 250 billion (USD 1.6 billion) for research and development this year, said Tokyo Electron President Toshiki Kawai. He added that production of its front-end machines, which form circuits onto wafers, is expected to hit double-digit percentage growth next year.

Tokyo Electron occupies a very specific niche in the manufacture of advanced semiconductor: it claims to be the only manufacturer in the world to focus on the process of forming micron- to nano-scale circuit patterns. Its portfolio covers the four sequential patterning processes.

Tokyo Electron Limited, or TEL, is a Japanese electronics and semiconductor company headquartered in Akasaka, Minato-ku, Tokyo, Japan. The company was founded as Tokyo Electron Laboratories, Inc. in 1963. TEL is best known as a supplier of equipment to fabricate integrated circuits (IC), flat panel displays (FPD), and photovoltaic cells (PV). Listed on the Nikkei 225, in 2024, Tokyo Electron had a market cap of US$114.6 billion, making it the third-most valuable company in Japan in terms of market cap, and the 12th ranked semiconductor-related company worldwide.

-advertisement-

Editor：Vicky

▼▼▼

US semiconductor giant Marvell Tech launches third office in Vietnam

Robert Dennard, inventor of DRAM and pioneer of semiconductor scaling, dies at 91

1 worker seriously injured after explosion at TSMC plant in north Phoenix

Biden announces new China tariffs on electric vehicles, solar, chips and more

Intel nears $11 billion deal with Apollo for Ireland factory

Blacklisted China chipmaker SMIC becomes the world's second-largest pure-play foundry by revenue