# Tokyo Electron nears 1 trillion yen profit on memory capex *Surging wafer equipment demand from Samsung Electronics and SK hynix puts Tokyo Electron's annual operating profit target within reach ahead of its second-quarter fiscal 2027 review.* **Published:** October 7, 2026 **By:** Kenji Sato **Section:** Semiconductors & AI Hardware — Japan **Format:** Company Watch **Confidence:** medium **Source:** https://eastasiabrief.com/semiconductors/tokyo-electron-nears-1-trillion-yen-profit-memory-capex-577 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Tokyo Electron raised H1 FY2027 operating profit guidance to 458 billion yen ($3.1 billion) on July 30 - Samsung Electronics drove 15.1% of FY2026 sales as South Korea Q1 tool billings jumped 73% - Tokyo Electron reports second-quarter financial results on Oct. 30, 2026 ![A technician in cleanroom gear operates advanced semiconductor manufacturing equipment inside a fabrication facility. (AI-generated image)](https://eastasiabrief.com/media/2026-10-07-a7d5946359d8.webp) *A technician in cleanroom gear operates advanced semiconductor manufacturing equipment inside a fabrication facility. (AI-generated image)* Tokyo Electron drew intense market focus on Oct. 7, 2026, as expanding advanced memory investments by South Korean chipmakers reinforced its trajectory toward a 1 trillion yen operating profit. The 1 trillion yen ($6.8 billion) milestone would mark an operating profit record for Japan's largest semiconductor equipment manufacturer. The Tokyo-based supplier builds coater-developers and plasma etch systems that memory fabricators require for high-volume fabrication. Tokyo Electron raised its first-half fiscal 2027 forecast on July 30 to 458 billion yen ($3.1 billion) in operating profit on net sales of 1.62 trillion yen ($11.0 billion). That operating projection represents a 51.1% increase over the previous year. Finance Division Officer Hiroshi Kawamoto said during the July briefing that steady progress across customer accounts is putting operating profit of 1 trillion yen within reach. The revised Investors' Guide published Sept. 15 reaffirmed medium-term corporate targets for the fiscal year ending March 2027. Tokyo Electron outlined goals of 3 trillion yen ($20.4 billion) in net sales and a 35% operating margin. Consensus figures compiled by the QUICK financial news service placed full-year operating profit at 1.025 trillion yen ($6.97 billion). The projection assumes second-half tool deliveries accelerate as chipmakers expand cleanrooms for next-generation memory. South Korea provides the immediate momentum behind Tokyo Electron's order book. Equipment revenue from South Korean customers surged 73% year-on-year in the three months ended June 30 to 152.4 billion yen ($1.04 billion), making it TEL's fastest-expanding market. Samsung Electronics serves as Tokyo Electron's largest customer account. The Suwon-based chipmaker generated 368.1 billion yen ($2.50 billion), or 15.1% of Tokyo Electron's consolidated net sales during the fiscal year ended March 31, 2026. Samsung Electronics is outfitting its P4 production line in Pyeongtaek, South Korea, with high-aspect-ratio etch tools and extreme ultraviolet coaters. The plant focuses on sixth-generation 10-nanometer-class dynamic random-access memory and custom HBM4 dies. SK hynix expanded its capital expenditure program to support parallel packaging and front-end fab expansions. The Icheon-based memory producer guided 2026 capital spending into the high 40-trillion-won range ($30 billion), an increase exceeding 10 trillion won over 2025. SK hynix accelerated equipment installation at its M15X fab in Cheongju to prepare for volume HBM production. The company also placed advance equipment orders for Fab 1 at the Yongin semiconductor cluster, targeting commercial operation in early 2027. High-bandwidth memory production consumes disproportionate volumes of silicon wafers compared with standard DRAM. Stacking 12 or 16 DRAM dies onto a logic base die multiplies the total wafer area required to deliver equivalent bit volume to customers. The wafer multiplier compels memory manufacturers to purchase additional wafer processing systems. Tokyo Electron commands nearly 100% global market share in extreme ultraviolet coater-developers, tying tool shipments directly to memory node transitions. Etching deep vertical channels through multilayer memory stacks requires specialized cryogenic dielectric etch tools. Tokyo Electron began shipping high-aspect-ratio cryogenic etch platforms that etch memory channels at high speeds while lowering power consumption. Delivery lead times for advanced etch and clean tools currently extend past nine months. Memory fabricators must place hardware orders three quarters before planned cleanroom occupancy, locking in delivery schedules for Tokyo Electron factories in Yamanashi and Miyagi. The Semiconductor Equipment Association of Japan raised its fiscal 2026 forecast for Japanese equipment sales to 6.55 trillion yen ($44.5 billion). That forecast represents a 26.0% year-on-year increase, driven primarily by DRAM capacity additions across East Asia. Global semiconductor equipment billings will hit a record $165.9 billion in 2026, according to industry association SEMI. Memory spending accounts for the fastest component growth as artificial intelligence servers demand denser DRAM configurations. Pricing and margin gains strengthened Tokyo Electron's profitability. The company posted a gross profit margin of 46.2% during the first fiscal quarter, up from 40.5% recorded during the same period in 2025. Strong South Korean demand balances potential volatility in other geographic segments. While mainland Chinese buyers sustained mature-node equipment purchases, tightening multilateral export restrictions constrain shipments of advanced processing tools into China. Tokyo Electron did not issue a new earnings announcement or guidance document on Oct. 7. The company discontinued publishing full-year corporate forecasts earlier this year because artificial intelligence customer procurement cycles created high quarterly volatility. Tokyo Electron will release its second-quarter fiscal 2027 financial results on Oct. 30, 2026. Company executives will present audited first-half numbers and update delivery schedules for major Asian wafer fabs at that meeting. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Advanced memory equipment expansion | Samsung and SK hynix lift DRAM capex above 40 trillion won | Export rules restrict advanced tools, focusing spend on mature nodes | Tokyo Electron tracks toward 1 trillion yen operating profit on 35% margin | Wafer equipment sales reach | | Advanced memory equipment expansion | Samsung and SK hynix lift DRAM capex above 40 trillion won | Export rules restrict advanced tools, focusing spend on mature nodes | Tokyo Electron tracks toward 1 trillion yen operating profit on 35% margin | Wafer equipment sales reach $165.9 billion in 2026 on HBM bottlenecks | ## In this story - **Companies:** Tokyo Electron, Samsung Electronics, SK hynix - **Tickers:** 8035.T, 005930.KS, 000660.KS - **Policy:** Export Controls - **Impact:** Supply Chain, Capex, Pricing, Order Book ## Primary sources 1. tel.com 2. chosun.com 3. hankyung.com 4. alphabiz.co.kr 5. daum.net --- Cite as: East Asia Brief, "Tokyo Electron nears 1 trillion yen profit on memory capex," October 7, 2026. https://eastasiabrief.com/semiconductors/tokyo-electron-nears-1-trillion-yen-profit-memory-capex-577