Tokyo Electron Shares Plunge 18% After Surprise Outlook Cut

Tokyo Electron Ltd. shares dived 18% — the most in nearly a year — after the chip tool maker slashed its full-year earnings outlook to below estimates, highlighting weakness among some logic manufacturers.

The Japanese chip equipment supplier, which competes most directly with Applied Materials Inc., said it now sees slower-than-expected recovery in demand from logic chipmakers. It warned that it may not be able to hit a midterm revenue goal of ¥3 trillion ($20 billion) in the next fiscal year and that the timing of reaching that target may “shift slightly.”