Financial Performance Summary: In fiscal 2024, Tokyo Electron reported net sales of JPY1,830.5 billion, a 17.1% decline year-on-year, attributed to a slowdown in customers¡¯ capital investment in wafer fabrication equipment (WFE). Despite the decline in sales, gross profit margin reached a record 45.4%, leading to operating income of JPY456.2 billion and net income of JPY363.9 billion, which were above earlier financial estimates.

Market Outlook and Growth Drivers: The WFE market is expected to recover, with forecasts for a $100 billion size in calendar 2024 and potential double-digit growth in 2025, driven by AI-related devices and a recovery in advanced logic and memory sectors, particularly DRAM, which is expected to begin recovery in late 2024.

Increase in R&D Investment: The company plans to invest a record JPY250 billion in R&D for fiscal 2025 as part of a broader JPY1.5 trillion commitment over five years. This investment is aimed at enhancing technology portfolios, including developments in cryogenic etching and high-capacity NAND technologies, to capture future growth opportunities.