"Semiconductor Downturn as a Localized Movement"... What Is the Outlook of Tokyo Electron's President?

President Toshiki Kawai of Tokyo Electron (Photo by Tokyo Electron)

[Asia Economy Reporter Jeong Hyunjin] Amid growing concerns that the global semiconductor market is entering a harsh winter, Kawai Toshiki, president of Tokyo Electron, the world's third-largest semiconductor equipment manufacturer, forecasted that the semiconductor market outlook will "remain a localized movement and will not become a significant (downward) trough."

In an interview with Japan's Nihon Keizai Shimbun published on the 5th, President Kawai responded to analyses suggesting a deterioration in the market conditions of certain semiconductor items such as memory by saying, "I still feel that semiconductor growth remains very strong." He added, "(This growth) does not depend on items like memory, logic, or CMOS sensors," and said, "If there is news of adjustments, it might be because some semiconductor users are reducing in-house inventory that they had held in anticipation of future shortages."

President Kawai noted that while the semiconductor market once relied on the growth of specific devices such as TVs, home appliances, PCs, and smartphones, today semiconductor demand is increasing due to the spread and advancement of various cutting-edge services such as the metaverse, Internet of Things (IoT), artificial intelligence (AI), cloud computing, and 5G. He said, "Because it is not dependent on a single product, the growth trend will not stop so easily."

He stated, "There was once pessimism that semiconductor performance improvements would hit a brake, but various players have overcome limits through technological innovation," adding, "New products continue to appear every 1.5 to 2 years, and performance improvements persist. With steady technological innovation, we can be optimistic about the future of semiconductors."

President Kawai emphasized that investment should not be delayed to gain an advantage in the technological innovation competition. He also explained that semiconductor manufacturing equipment is produced by combining various technologies ranging from electronics to chemistry, mechanics, and software, saying, "It is necessary to secure outstanding talent in each field." He added, "It is important that employees feel their own growth and contribution to society while working at this company."

This content was produced with the assistance of AI translation services.