Tokyo Electron to set aside $1.6 billion for R&D this year
The Japanese equipment maker is driving hard into new product research as demand for advanced chips surges.
Tokyo Electron occupies a very specific niche in the manufacture of advanced semiconductor: it claims to be the only manufacturer in the world to focus on the process of forming micron- to nano-scale circuit patterns. Its portfolio covers the four sequential patterning processes.
This specialisation has helped it to become a key supplier to Samsung, TSMC and Intel. Now, Tokyo Electron believes it is on the verge of a growth spike, with demand for artificial intelligence chips set to lift its overall sales by 20% to YEN 2.2 trillion (USD 14.1 billion) in the year to March.
Which explains why the firm is setting aside YEN 250 billion (USD 1.6 billion) for research and development this year, said Tokyo Electron President Toshiki Kawai. He added that production of its front-end machines, which form circuits onto wafers, is expected to hit double-digit percentage growth next year.
