Tokyo Electron Sees Potential Mid-Year Chip Rebound

Tokyo Electron Ltd., one of the world’s biggest makers of semiconductor manufacturing equipment, says it will take as long as another three months until it’s clear whether there will be a rebound in demand damped by U.S.-China trade tensions.

The pace of slowing demand from customers, which include all of the world’s major chipmakers, is moderating as they work through inventories, a process that could continue through the second half of 2019 and into the start of next year, Chief Executive Officer Toshiki Kawai said in an interview. The market for wafer processing equipment may shrink by about 15 to 20 percent this year, in part due to the trade war between the world’s two largest economies, Kawai said.