Japanese suppliers of equipment for chip production are also forced to work under conditions of export restrictions in the Chinese direction, but outside the sanctions they manage to make good money on the Chinese market. In particular, for Tokyo Electron, Chinese sales accounted for 46.9% of total revenue last quarter, and the forecast for the current quarter exceeded analysts’ expectations and caused stock prices to rise by 12%.
In the calendar of Japanese companies, the fiscal year traditionally ends at the same time as March, so Tokyo Electron updated its forecast for the dynamics of operating profit for the full 12-month period the day before, raising it by 11% from the previous value to $3 billion. This caused the price of Tokyo Electron shares to rise by 12%, which was the maximum increase within a day in almost four years.
Along the way, representatives of Tokyo Electron expressed hope that the costs of DRAM memory manufacturers for the purchase of technological equipment will return to growth this year. The company also said it expects demand for its products in China to remain strong until at least the end of 2025, as local chipmakers strive to achieve self-sufficiency by increasing capacity and aggressively purchasing equipment. Analysts believe that the high degree of dependence of Tokyo Electron’s revenue on the Chinese market harbors certain geopolitical risks, but the company prefers to ignore them for now.