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Tokyo Electron Ltd 8035

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Currency in JPY
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Tokyo Electron Increases Its Equipment Growth Outlook for 2021; Raising FVE to JPY 44,000

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA |

Narrow-moat Tokyo Electron recorded impressive fiscal first-quarter results, with revenue up sharply year over year. Management anticipates wafer fab equipment, or WFE, spending to be up 40% in calendar 2021, which is in line with commentary from other equipment suppliers. We are raising our fair value estimate to JPY 44,000 per share from JPY 41,000, as we incorporate the stronger outlook for WFE and robust foundry equipment demand from the likes of Taiwan Semiconductor Manufacturing.

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Company Profile

Business Description

Tokyo Electron is a key vendor of semiconductor fabrication tools. It operates primarily in the etch, deposition, and clean segments, which involve adding and removing materials to and from semiconductor wafers. Customers include leading-edge logic, foundry, and memory chipmakers such as Intel, TSMC, Micron, and Samsung.

Contact
Akasaka Biz Tower, 3-1 Akasaka 5-chome
Tokyo, 107-6325, Japan
T +81 355617000
Sector Technology
Industry Semiconductor Equipment & Materials
Most Recent Earnings Jun 30, 2021
Fiscal Year End Mar 31, 2020
Stock Type
Employees 14,479

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