The Japanese semiconductor equipment industry is thriving, with the top ten manufacturers, including Tokyo Electron and DISCO, reporting a combined operating profit of 320 billion yen (approximately $2.18 billion) for the months of April to June, marking an 80% increase compared to the same period last year. This significant growth comes even as the demand for EVs and smartphones remains subdued.

Among these ten companies, seven have seen an improvement in their operating profits, with Tokyo Electron, Screen Holdings, and DISCO achieving record profits. Furthermore, Tokyo Electron, Advantest, and Screen have all raised their financial forecasts for the fiscal year 2024 (April 2024 to March 2025).

Tokyo Electron has reported that customer orders for AI chip equipment are extremely strong, and there are no signs of major concerns in the chip manufacturing equipment market. Advantest has also noted a surge in demand for high-performance DRAM (HBM) testing equipment and SoC semiconductor testing equipment, which is growing at an unexpectedly rapid pace.

As a result of this strong demand, Advantest has revised its consolidated revenue forecast for the fiscal year 2024 upwards from the initial estimate of 525 billion yen to 600 billion yen in April. The operating profit forecast has been increased from 90 billion yen to 138 billion yen, and the net profit forecast has been raised from 67 billion yen to 105 billion yen.

The AI sector's demand for semiconductor equipment is proving to be a significant driver for the industry's profitability, indicating a bright future for these Japanese manufacturers as they continue to innovate and meet the needs of a rapidly evolving market.