[News] Tokyo Electron Reportedly Sees China Sales Dropping to 30% in 2025 Amid Tightening U.S. Export Curbs

Amid rising U.S. tariffs and stricter export controls on chipmaking tools, global equipment makers are dialing back their reliance on China. Japan’s Tokyo Electron, the most exposed among peers, now expects China to make up about 30% of its sales—down from 40% in the second half of 2024, Bloomberg reports.

Tokyo Electron President Toshiki Kawai told Bloomberg that booming demand for AI-related equipment is helping offset the dip in China sales. To stay ahead, the company plans to invest ¥1.5 trillion in R&D over the next five years and hire 10,000 engineers, he said.

Notably, in the previous quarter, China made up 34% of Tokyo Electron’s revenue—the highest among major chip equipment makers, topping ASML (27%), Applied Materials (25%), KLA (26%), and Lam Research (31%).

As per Reuters, ASML, which provides high-NA EUV and EUV machines to Intel, TSMC and Samsung, now anticipates the Chinese market to account for over 25% of its 2025 sales. On the other hand, according to the information KLA revealed on the website previously, the company’s revenue in China is projected to decline by about 20% year-over-year in 2025.

On the other hand, Kawai also told Bloomberg the tariff risks under the Trump administration have had limited impact. With just 8% of sales coming from the U.S. and transactions conducted in yen, the company faces minimal currency risk, according to Bloomberg.

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(Photo credit: Tokyo Electron)