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Tokyo Electron hikes FY profit forecast by 8.5%

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TOKYO (Reuters) - Tokyo Electron on Tuesday hiked its operating profit forecast for the year ending March 2025 by 8.5% to 680 billion yen ($4.42 billion) amid chip industry investment supported by the growth of artificial intelligence.

Profit in the July-September quarter climbed 54% to 148 billion yen compared to the same period a year earlier as the Japanese chip equipment maker was boosted by investment in AI and legacy chipmaking in China.

Tokyo Electron made 41.3% of net sales in China in the quarter, compared to 49.9% in the previous quarter, with sales growing in North America and Japan.

The company said it would buy back up to 3.5 million shares for up to 70 billion yen.

($1 = 153.8700 yen)

(Reporting by Sam Nussey; Editing by Christopher Cushing)