Business

Japan's major chip equipment makers, including Tokyo Electron, Screen Holdings, and Advantest, are reporting a roughly 10% drop in China-sourced revenue as export controls imposed in mid-2023 bite into order books. Tokyo Electron's China share has fallen from 47% to under 27% of total sales, and the company is betting on AI-driven demand to fill the gap. But the structural question of whether Western and Southeast Asian fabs can replace China's volume remains unanswered.