Movement Alert|Tokyo Electron Falls 3.6% in Pre-Market Trading, China Sales Headwinds Continue to Weigh on Semiconductor Equipment Sector

Market Focus06-26

On June 26, Tokyo Electron fell 3.6% in pre-market trading, trading at $225.57/share, with turnover of $3.55 million. The decline comes amid broad weakness across the semiconductor equipment sector, as the industry continues to digest news of a historic drop in Japanese chip equipment makers' China sales.

According to recent reports, Japan's five major semiconductor equipment companies posted combined China sales of 1.47 trillion yen for fiscal year 2025 (ending March 2026), down 12% year-over-year — the first-ever annual decline. Tokyo Electron was notably impacted, with its China revenue share falling to 27% in the January-March quarter, down 7 percentage points year-over-year and sharply below its prior peak of 50%. Front-end process equipment makers, including Tokyo Electron, saw collective China sales decline nearly 20%.

The pressure reflects accelerating Chinese semiconductor equipment localization, with domestic front-end equipment adoption rising from 10% in 2021 to 21% in 2025. Within the sector, Applied Materials fell 2.43%, Lam Research fell 3.44%, ASML fell 2.77%, Teradyne fell 3.21%, and KLA-Tencor fell 3.41%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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