Tokyo Electron eyes 20% sales boost as AI lifts demand for chips

TOKYO -- Japanese chip tool maker Tokyo Electron said on Friday that it expects sales to grow 20% in the fiscal year ending next March, as global chip makers continue to invest in advanced technology on the back of growing demand for generative artificial intelligence applications.

"We are seeing advanced logic and memory chip-related investment recover and expand," said Hiroshi Kawamoto, general manager of the company's finance unit, in an online press conference. This likely reflects continued demand for AI chips, as chip designers such as American Nvidia enjoy booming demand for their products, which are seen as critical components for developing generative AI.