On June 24, Tokyo Electron fell 3.42% in pre-market trading, trading at $220.0/share, with turnover of $29,400. The decline follows reports that Japanese semiconductor equipment makers saw a historic drop in China sales as Chinese domestic manufacturers increasingly substitute foreign equipment.
According to recent data, the five major Japanese chip equipment makers reported combined China sales of 1.47 trillion yen (approximately $9.11 billion) for the fiscal year ended March 31, down 12% year-over-year. Tokyo Electron's China revenue as a percentage of total sales fell to 27% in the January-March quarter, down 7 percentage points from the prior year and sharply below the 50% peak recorded in April-June of the previous year. Front-end wafer fabrication equipment makers including TEL, Screen Holdings, and Kokusai Electric saw their combined China sales decline nearly 20%.
The downturn reflects China's accelerating push toward a self-sufficient semiconductor supply chain, including domestic equipment procurement, driven by U.S. export restrictions that have cut off access to advanced foreign manufacturing tools. Western peers such as Applied Materials and KLA also face headwinds in the Chinese market, which accounts for 37% of global semiconductor equipment demand at approximately $493 billion.
(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.)
Comments