Tokyo Electron has raised its profit outlook for the year after global chipmakers continued to spend on new equipment in the face of rising economic uncertainty.
The Tokyo-based supplier to Taiwan Semiconductor Manufacturing Co. and Intel lifted its forecast for the year to March above expectations to ¥580 billion ($4.4 billion). Companies kept spending after reviewing investment plans, Tokyo Electron executives said during earnings calls on Thursday.
The Japanese maker of equipment used to coat, etch and test silicon to form semiconductors now sees a recovery starting in the second half of 2023 and continued growth from 2024 onward, thanks in part to government subsidies for chip-related investments around the world, according to Hiroshi Kawamoto, Tokyo Electron’s general manager of finance.