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TEL sees orders 15% ahead, says report

Posted: 21 Dec 2005 ?? ?Print Version ?Bookmark and Share

Keywords:Tokyo Electron? TEL?

Orders for chipmaking equipment from Tokyo Electron Ltd (TEL) are likely to beat a previous forecast by 15 percent and bode well for the company in its next fiscal year, according to a Bloomberg report that referenced an interview by the company's chairman.

The orders are up because chip makers are seeing demand for flash memory chips and driver chips for flat panel displays, the report said.

Orders are set to reach $1.29 billion for the fourth quarter of 2005, the report quoted Terry Higashi, chairman of TRL, saying in a Dec. 16 interview in Tokyo.

"The orders we are getting now will impact earnings in the next fiscal year," the report quoted Higashi saying. "New models of our existing products should help us raise the operating profit margin to about 17 percent in two to three years, from about 10 percent now," the report also quoted Higashi saying.

Tokyo Electron plans to release eight new models by March 2006, with the machines focusing on the production of 65-nanometer and 45-nanometer chips, the report said.

- Peter Clarke
EE Times




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