[News] Tokyo Electron Builds Major Kumamoto R&D Hub Near TSMC to Advance 1nm Chip Equipment

According to Nikkei, Japan’s leading chipmaking equipment maker Tokyo Electron opened a large research and development center on Wednesday. The new facility aims to strengthen collaboration with TSMC and other partners in advancing next-generation 1nm semiconductor technologies.

As the report notes, the new facility, located in an industrial park in Japan’s Kumamoto Prefecture, home to TSMC’s local operations, is scheduled to begin operations in the spring of 2026. The report adds that it will boost Tokyo Electron’s development capacity in the region by fourfold.

Tokyo Electron commands a major share of the market for coater-developers and cleaning equipment. As Nikkan Kogyo Shimbun reports, the company holds a 100% share in coater-developers used for extreme ultraviolet (EUV) lithography systems. The new development facility is particularly focused on advancing technologies for high-numerical-aperture (high-NA) EUV tools, which are expected to drive the next generation of lithography, the report adds.

Earnings Outlook and R&D Strategy

Apart from its push into next-generation chip equipment, Nikkei notes that Tokyo Electron’s earnings have begun to soften. The company now expects net profit to fall for the fiscal year ending in March, reversing an earlier forecast for growth, amid shifts in client investment plans and weaker chip equipment sales in China.

The company continues to expect AI demand to expand over the medium to long term and plans to sustain its investment efforts. As Nikkei highlights, it will allocate more than 1.5 trillion yen ($9.92 billion) to R&D over the five years through March 2029 — a 90% increase compared with the previous five-year period.

Read more

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(Photo credit: Tokyo Electron)