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Japan's chip equipment sales to grow 27% in FY2024, driven by AI demand and others

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Update time : 2024-01-29 11:28:34
        Japan's semiconductor equipment sales are expected to soar 27% to 4.03 trillion yen ($27 billion) in fiscal 2024 (from April this year), driven by demand for new spending related to artificial intelligence (AI), the Semiconductor Equipment Association of Japan (SEAJ) said.
        The Japan Semiconductor Equipment Association, whose members include Tokyo Electron, Edelweiss and Screen, said the industry group expects a significant recovery in spending by memory chip makers during the second half of fiscal 2023 (September 2023 to March 2024), in addition to the recovery of foundries and logic chip makers. The CAGR through March 2026 is expected to continue at 10%. 
        New chips optimized for generative AI and investments in AI-enabled servers will help boost demand, said Toshiki Kawai, chairman of SEAJ and CEO of Tokyo Electron. 
        TSMC said it is budgeting for a possible increase in capital spending in 2024, and CEO Chieh-Chia Wei reiterated that it expects "healthy growth" to resume this year. 
        The Japanese chip equipment maker's revenue is expected to fall 19% in the fiscal year 2023 ending in March, slightly less than the 23% drop it previously forecast in July last year, partly due to strong sales in mainland China. 
        Toshiki Kawai said that given restrictions on exports of cutting-edge manufacturing equipment, "investment in mainland China has been more aggressive than expected, and companies are actively investing in areas that are less susceptible to regulatory oversight."
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