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Investing.com-- Tokyo Electron (TYO:8035) shares fell sharply on Friday after the chip equipment maker slashed its full-year operating profit forecast by 21.6%, citing adjustments in capital investment plans by semiconductor manufacturers.
The company now expects to report an annual operating profit of 570 billion yen ($3.83 billion) for FY26, below previous estimates of 727 billion yen.
Shares of the company slumped more than 18% to 22,330 yen in early trade, reaching their lowest level since early May.
The company also reported a 12.7% drop in first-quarter operating profit to 144.7 billion yen, with net sales declining 1% to 549.6 billion yen.
Tokyo Electron attributed the weaker performance to slowing demand for general-purpose chips, though demand for advanced semiconductors tied to AI servers remained strong.
The firm revised its annual dividend forecast down to 485 yen per share from 618 yen, reflecting the lower profit outlook.