Tokyo Electron Limited recorded a robust increase in net sales and operating profit in the first quarter ended June 30, 2024.
Net sales increased by 41.7% compared to the same period last year, while operating income increased by an impressive 101.1%.
The company is also forecasting significant growth for the financial year ending March 31, 2025.
Net sales are expected to increase by 34.2% and operating profit by 61.3%.
Despite this positive outlook, Tokyo Electron ($8035 (+4,51 %) ) cautions that these financial projections are based on current information and reasonable assumptions. There is a possibility that actual results may differ.
These developments underscore Tokyo Electron's strong market position and positive business outlook, but could also indicate uncertainties that may be affected by variable market conditions and other external factors.
The Biden administration is considering tougher trade rulesin particular the Foreign Direct Product Rulein order to China's access to advanced semiconductor technology further restrict China's access to advanced semiconductor technology. The FDPR would allow the USA to restrict the export of foreign products that contain even a small amount of American technology.
This potential measure has led to a significant drop in shares from several chip manufacturers.
The USA reportedly has allies such as the Netherlands and Japan have called for the export of advanced chip manufacturing equipment to China. Failure to comply with this request could lead to the activation of the FDPR rules lead to the activation of the FDPR rules. The potential trade restrictions and the geopolitical tensions surrounding Taiwan have and will lead to considerable fluctuations in the chip industry.
If you consider that a large proportion of the products in China are produced with machines from Germany. In principle, we have destroyed the German solar industry with our machines. Could the German automotive industry suffer the same fate? Did we make China so strong in the first place with our know-how in mechanical engineering and could this have been avoided by not supplying the machines? Should we have avoided selling KukA to China?
Was it not we ourselves who made China so strong by not protecting our know-how well enough?
Another issue: $ASML is no longer allowed to export to China and Japan, as a member of the G20, is making a fortune. But Russia is only sanctioned by certain countries.
Tokyo ElectronJP357140000580358035
