Tokyo Electron (8035)

Tokyo Electron (8035) is Japan’s largest semiconductor production equipment maker, supplying the coater/developers, etch, and deposition tools that build DRAM, NAND, and HBM. In ETFpedia it is the equipment backbone of the Asia memory semiconductor concept. It closed the year ended March 2026 with record net sales of 2,443.5 billion yen and guided first-half sales up 33%.

Ticker8035
ExchangeTSE
SectorTechnology · Semiconductor Production Equipment
CountryJapan
Related indexAkros Asia Memory Semiconductor Top 10 Index (AAMST10)
WikidataQ1351484
Last updated2026-06-10
Financial snapshotas of2026-06-10

Next event:Next earnings · Q1 FY2027 results (Apr–Jun 2026 quarter)estimated · Date not yet announced. Tokyo Electron has historically reported fiscal first-quarter results in late July or early August; estimated, not company-confirmed. (source)

Latest reported quarter:FY2026 (fiscal year ended Mar 31, 2026) (reported2026-04-30)

Tokyo Electron posted record FY2026 net sales of 2,443.5 billion yen, up 0.5% year over year, with operating income of 624.9 billion yen, down 10.4%, at a 25.6% operating margin, and record net income of 574.5 billion yen, up 5.6%, helped by sales of strategic shareholdings. DRAM/HBM and advanced-logic investment stayed strong while long-muted 3D NAND spending began recovering.

Net sales¥2,443.5B+0.5%YoY · Record high
Operating income¥624.9B-10.4%YoY · 25.6% operating margin
Net income¥574.5B+5.6%YoY · Record; includes gains on sales of strategic shareholdings
EPS (basic)¥1,254.57

Primary source

Guidance:First half FY2027 (Apr–Sep 2026)

Net sales (forecast)¥1,570B
Operating income (forecast)¥431B
Net income (forecast)¥328B

All half-year records if achieved, driven by AI-server DRAM and leading-edge logic; the full-year forecast is deferred to the Q2 (Sep 2026) announcement on limited second-half visibility.

Guidance source

Recent & upcoming events

  • · Record FY2026 results and H1 FY2027 guidance.Record net sales of ¥2,443.5B and record net income of ¥574.5B; H1 FY2027 guided to ¥1,570B in sales (+33.1%). FY2026 SPE new-equipment sales split: DRAM 31%, non-volatile memory 10%, non-memory 59%. (source)
  • · WFE market outlook raised for CY2026–27.TEL projected the wafer fab equipment market at $150–170 billion per year for CY2026 and CY2027, growth of 20% or more versus CY2025, with leading-edge applications growing 30% or more. (source)
  • · FY2026 year-end dividend payment begins.Annual FY2026 dividend of ¥628 per share (¥264 interim + ¥364 year-end forecast), up from ¥592 in FY2025; total dividends of ¥287.4 billion. (source)

Figures are consolidated (Japanese GAAP) from Tokyo Electron's FY2026 earnings release of April 30, 2026. TEL's fiscal year ends March 31; 'FY2026' is the year ended March 31, 2026.

Figures are as of 2026-06-10 and reflect the most recent public filings/IR releases; they are updated after each earnings report.

What does Tokyo Electron do?

Tokyo Electron, usually shortened to TEL, makes the machines that make chips. A wafer on its way to becoming a DRAM die or an HBM stack passes through coating and developing, etching, film deposition, cleaning, and bonding, and TEL sells tools for every one of those steps. Its market positions are unusually deep: more than 90% global share in coater/developers, the tools that spread and develop photoresist for lithography, and over 50% share in dielectric etch, with process-of-record wins at all leading DRAM customers in the capacitor process and a very high share in the interconnect etch that HBM growth depends on (TEL FY2026 transcript). In FY2026, sales to DRAM customers were 31% of new-equipment sales, non-volatile memory 10%, and non-memory logic and foundry 59% (TEL).

How is AI driving Tokyo Electron’s business?

AI demand reaches TEL one step removed: memory makers earn record profits, then spend them on fabs. The AI server build-out keeps DRAM and HBM investment strong, and even 3D NAND spending, muted for years, has begun to recover as data-center SSD demand tightens flash supply. President and CEO Toshiki Kawai summarized the year this way:

“In FY2026, we generated net sales of 2 trillion 443.5 billion yen, hitting record high. In addition to the active investment for advanced logic and DRAM/HBM for AI servers starting in the previous fiscal year, investment for 3DNAND, which had been muted for a long time, finally showed some signs of recovery.”

— Toshiki Kawai, President & CEO, Tokyo Electron (FY2026 earnings call)

The company’s market view is explicitly a multi-year one: it projects the wafer fab equipment (WFE) market at $150 to 170 billion per year for CY2026 and CY2027, growth of 20% or more versus CY2025, with spending on leading-edge devices growing 30% or more (TEL FY2026 transcript).

What did Tokyo Electron report most recently?

For the fiscal year ended March 31, 2026, announced April 30, 2026, TEL reported record net sales of 2,443.5 billion yen, up 0.5% year over year, operating income of 624.9 billion yen, down 10.4%, for a 25.6% operating margin, and record net income of 574.5 billion yen, up 5.6%, helped by gains on sales of strategic shareholdings (TEL FY2026 results). Basic EPS was ¥1,254.57, and the FY2026 annual dividend rose to ¥628 per share from ¥592, with payment starting June 2, 2026 (TEL).

What is Tokyo Electron’s guidance?

TEL guided only the first half of FY2027 (April–September 2026), citing limited second-half visibility: net sales of 1,570 billion yen, up 33.1%, operating income of 431 billion yen, up 42.2%, and net income of 328 billion yen, up 35.7%, each a half-year record if achieved, driven by AI-server DRAM and leading-edge logic (TEL FY2026 results). By product, FY2027 coater/developer revenue is targeted to grow more than 50%, etch systems around 25 to 30%, and advanced packaging more than 60%, the last of these riding HBM bonding demand (TEL FY2026 transcript). The full-year forecast arrives with the September-quarter results.

What are the risks for Tokyo Electron?

  • Capex cyclicality. Equipment is the highest-beta layer of the memory cycle: when chipmakers cut capex, tool orders stop first, and TEL’s own FY2026 operating income fell 10.4% even in a strong demand year as mix shifted.
  • Guidance visibility. TEL itself declined to guide the second half of FY2027 because large customer orders can swing quickly.
  • Customer concentration. A few giant chipmakers, led by the Korean memory makers, TSMC, and Kioxia, decide each year’s order book.
  • Geopolitics and supply chain. Export controls on China and disruptions such as the Strait of Hormuz blockade it is monitoring can hit both shipments and parts supply (TEL FY2026 transcript).

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Frequently asked questions about Tokyo Electron

What does Tokyo Electron do?

Tokyo Electron (TEL) is Japan's largest semiconductor production equipment maker. Its machines perform the coating/developing, etch, deposition, cleaning, and bonding steps that turn silicon wafers into DRAM, NAND, HBM, and logic chips. It holds more than 90% global share in coater/developers and over 50% in dielectric etch, with leading positions in DRAM capacitor and HBM interconnect processes (TEL FY2026 transcript). In FY2026 it generated record net sales of 2,443.5 billion yen (TEL).

What was Tokyo Electron's latest revenue?

For the fiscal year ended March 31, 2026, Tokyo Electron reported record net sales of 2,443.5 billion yen, up 0.5% year over year, operating income of 624.9 billion yen (down 10.4%, a 25.6% margin), and record net income of 574.5 billion yen, up 5.6% (TEL FY2026 results). Sales to DRAM customers were 31% of SPE new-equipment sales, non-volatile memory 10%, and non-memory 59% (TEL FY2026 transcript).

What is Tokyo Electron's guidance?

For the first half of FY2027 (April–September 2026), TEL forecasts net sales of 1,570 billion yen, up 33.1% year over year, operating income of 431 billion yen (+42.2%), and net income of 328 billion yen (+35.7%), all half-year records, driven by AI-server DRAM and leading-edge logic demand (TEL FY2026 results). The full-year forecast is deferred to the September-quarter announcement because second-half visibility is limited. TEL also projects the WFE market at $150–170 billion a year through 2027 (transcript).

When does Tokyo Electron report its next earnings?

Tokyo Electron has not yet posted the date for its fiscal Q1 FY2027 (April–June 2026) results. It has historically announced first-quarter results in late July or early August, so that window is the estimate; it is not company-confirmed (TEL IR). TEL last reported full-year FY2026 results on April 30, 2026.

Why is Tokyo Electron part of the Asia memory semiconductor concept?

Because memory capex becomes TEL revenue. Every major Asian memory fab, from SK Hynix and Samsung to Kioxia and Nanya, builds DRAM capacitors, HBM interconnects, and 3D NAND stacks on TEL coater/developers, etch, and deposition tools, where TEL holds market-leading share (TEL FY2026 transcript). With the AI memory supercycle funding record fab spending, TEL guided first-half FY2027 sales up 33.1% and expects the WFE market to grow 20% or more versus 2025 (TEL).

Sources & references

  1. Summary of Consolidated Financial Results for the Year Ended March 31, 2026 · Tokyo Electron Limited, 2026-04-30
  2. FY2026 Financial Announcement Transcript (Toshiki Kawai, President & CEO) · Tokyo Electron Limited, 2026-04-30
  3. Earnings Release | Investor Relations | Tokyo Electron Ltd. · Tokyo Electron Limited, 2026-04-30