Tokyo Electron raises outlook as AI data center spending lifts memory demand

Tokyo Electron's revised profit forecast signals a strong传导 from AI data center investments to semiconductor manufacturing. The surge in memory chip demand is driving renewed equipment orders, particularly in advanced nodes where EUV and CVD tools are key growth drivers. This capital expenditure cycle is pushing upstream suppliers to scale production and enhance precision, creating a self-reinforcing tech loop. However, geopolitical tensions, especially tightening export controls on critical equipment, are raising supply chain risks. Competitors like ASML and Nikon may accelerate capacity expansion to seize market share. Over the next 12 to 18 months, sustained AI compute demand will support a cyclical recovery in semiconductor equipment, but increasing U.S.-China tech decoupling could intensify pressure for domestic equipment substitution.