Tokyo Electron Cuts Outlook on Canceled Logic Chip Tool Orders

Tokyo Electron Ltd. slashed its full-year earnings outlook below estimates due to weak investment appetite by some advanced logic manufacturers and a lull in chip gear spending in China.

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.”