Tokyo Electron and Advantest climbed in the first October cash session on Wednesday, lifting the Tokyo Stock Exchange’s semiconductor equipment sub-index after both companies updated spending commentary tied to memory-fabrication orders. The move extended September’s split market, in which chip-tool names outran general trading houses even as insurers led the broader TOPIX.
Order commentary
Tokyo Electron, in a filing tied to a domestic investor briefing, said customers in South Korea and Taiwan requested pull-ins on etch and deposition tools slated for early 2027 delivery. The company did not raise formal guidance but said the order book for NAND-related lines “remains ahead of plan” after a slow first half.
Advantest, which supplies test handlers to the same fabs, pointed to higher utilization on DRAM final-test floors. Traders said the comments were enough to restart momentum after a one-day pause on Tuesday, when profit-taking hit high-beta tech.
Macro cross-currents
The session unfolded as the yen traded near multi-month lows against the dollar, helping exporters on translation but raising import costs for tool components sourced from Europe. Ten-year Japanese government bond yields hovered near 3.10 percent, keeping financial shares mixed.
Foreign investors were net buyers of electronics names for a second day, according to provisional flow tables from the exchange, while domestic pension funds were light sellers into the rally.
What investors watch next
October brings earnings pre-announcements from several device makers. Equipment investors will look for capex lines that confirm the pull-in narrative or flag push-outs if consumer electronics demand softens in North America.
Analysts at two domestic brokerages said they are keeping overweight ratings on test and metrology names while staying neutral on legacy analog suppliers, citing valuation gaps after the summer run-up.
Supply-chain bottlenecks
Tool makers still face long lead times on advanced ceramics and high-purity gas manifolds sourced from Europe. Tokyo Electron executives told investors that expedite fees are rising for customers that request pull-ins, which could inflate capex per wafer start even as order volumes grow.
Advantest said handler shipments to OSAT houses in Malaysia and the Philippines are booked through March, suggesting test capacity—not just front-end tools—could constrain memory output if smartphone launches slip.
Retail participation
Individual investors traded chip-equipment names heavily on Wednesday through online brokerages, extending a trend from September when NISA accounts rotated into exporters. Margin trading balances on Advantest rose modestly, prompting exchange warnings about intraday volatility.