Advantest Foresees Growth in Chip Testing Equipment Demand Amidst Electronics Sales Headwinds
On Wednesday, Advantest unveiled an optimistic outlook regarding the increasing demand for its chip testing equipment, particularly in the realm of memory designed for artificial intelligence applications. Despite grappling with challenges from sluggish sales in the electronics sector, the company projects a notable upswing in sales of memory testers, anticipating a figure of 244 billion yen ($1.65 billion) by the end of the current fiscal year in March. This updated forecast reflects a 5 billion yen augmentation from its previous October projection but still represents a 25% decline compared to the corresponding period the prior year.
During an insightful earnings briefing, Advantest’s CEO, Yoshiaki Yoshida, underscored the imperative need for collaborative efforts to meet the burgeoning market demand. The company envisions the global memory tester market expanding to a noteworthy range of approximately $1.3 billion-$1.6 billion this year, marking a significant upturn from the $1.1 billion recorded in the previous year.
In the October-December quarter, Advantest faced a substantial 35% dip in operating profit, tallying up to 26.8 billion yen. This decline was attributed to weakened consumer demand for smartphones and PCs. However, amidst this challenging scenario, the company remains sanguine about the escalating demand for chip testing equipment, especially within the AI-centric memory sector.
Notably, around 34% of Advantest’s sales in the third quarter originated from China, which has been rapidly expanding its chipmaking capacity amidst escalating tensions with the United States. This figure represents a decrease from the 45% reported during the same period in the prior year.
Closing at a marginal 0.5% decline just before the earnings announcement, Advantest’s shares have showcased resilience in the market, having garnered a substantial 20% gain since the onset of the year. This performance stands out, outpacing that of peers such as Tokyo Electron (8035.T) and Lasertec (6920.T).
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