Tokyo Electron has slashed its full-year earnings outlook below estimates due to weak investment appetite by some advanced logic manufacturers and a lull in chip gear spending in China.
The Japanese chip equipment supplier, which competes most directly with Applied Materials, said it now sees slower-than-expected recovery in demand from producers of logic chips. It warned that it may not be able to hit a midterm revenue goal of ¥3 trillion ($20 billion) in the next fiscal year and that the timing of reaching that target may "shift slightly.”
The company's shares dove 18% — the most in nearly a year — after the earnings revision, highlighting weakness among some logic manufacturers.
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