Japan's big 5 chip-equipment makers cut China exposure to 26.3%

The five Japanese chip-equipment makers' earnings show AI investment is not just boosting logic and memory, but also testing, storage, and components. Kioxia's surge reflects demand for high-capacity NAND and SSD in AI servers, aided by higher prices and a weak yen. Rohan and Renesas also grew, but their gains include one-off effects like reduced depreciation and prior-year losses.

China's share of sales fell from 45.0% to 26.3%, as exports restrictions and a pause in domestic capex reduced demand. Meanwhile, Taiwan and Korea grew sharply. This shift means these companies now depend more on a few large AI-related customers than on a broad geographic base, as noted by Itochu's Kobayashi.

Looking ahead, Tokyo Electron and Advantest raised forecasts, while Rohan held steady. The main uncertainty is whether AI data-center investment keeps expanding and how far it reaches. The July market sell-off showed investors worry about overheating and sustainability, but strong earnings have so far reassured them.