Nikon may cut forecast as chip demand drops

Analysts say the magnitude of that drop is misleading because Nikon last year posted record group net income, boosted by chipmakers tooling up to meet surging demand for their products.

"The industry consensus is that sales of chipmaking equipment will fall 30 or 35 percent this year," said Tetsuya Wadaki, an analyst at Nomura Securities Co, who rates Nikon's shares "hold."