Nikon Corp is fielding strong demand for its legacy chipmaking machines in China, which is mobilizing resources to build its own semiconductor supply chain.
Inquiries for the Japanese precision maker’s lithography tools have surged in China, Nikon president Muneaki Tokunari said.
The company is set to revamp a lithography machine geared for decades-old manufacturing processes. Its NSR-2205iL1, launching this summer, would serve the market for mature chip technology and Nikon expects to sell more than 10 units of the machine annually, said Tokunari, who is also chief operating officer and chief financial officer.
Photo: Bloomberg
New companies are sprouting up in China to make simpler semiconductors such as those that regulate power in vehicles, electronic devices and appliances. Behind that push are restrictions by the US and its allies, including Japan, on sales of cutting-edge equipment used to make advanced chips that enable artificial intelligence. Fewer restrictions are in place for well-established know-how.
“Our older machines are being used in China to make so-called legacy chips, and we are getting remarkable levels of inquiries for our new model,” Tokunari said in an interview, adding that the company’s tools are also available on the second-hand market.
Spurred by a countrywide effort to shore up its chip industry, China’s manufacturing capabilities are evolving at such a pace that “I wouldn’t be surprised if they are able to do quite a bit in five to 10 years,” he said.
Nikon used to rely heavily on Intel Corp for revenue, with the US firm accounting for 80 percent of semiconductor-related sales until a few years ago, he said, adding that now other companies comprise a majority of such sales, and the company is diversifying its client base in China, Taiwan and Japan.
However, headwinds exist. The US President Joe Biden’s administration has told Japan and the Netherlands that it is considering invoking the US’ foreign direct product rule if the two allies do not tighten export controls on chipmaking equipment further.
Restrictions on technology would likely become more strict, Tokunari said.
Nikon asks for export rules that are fair to all players in the market, he said.
Nikon is now making a strong marketing push in China with its new argon-fluoride lithography machines, released earlier this year in compliance with export controls, he said.
The Netherlands has restricted sales of industry leader ASML Holding NV’s extreme ultraviolet lithography machines used to make cutting-edge chips.
In the two years to March 2026, Nikon targets a 66 percent rise in operating profit to ¥25 billion (US$160 million) at its precision equipment segment, which includes lithography tools.
The company seeks to invest some of these profits to expand its customer base in areas such as digital manufacturing.
Nikon is fielding interest from defense and aerospace companies in the US for its metal 3D printers, Tokunari said.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US