Nikon Corp, the second-largest maker of machines that etch circuitry onto silicon wafers, said first-half profit fell by about two-thirds and expects a full-year loss as chipmakers cut spending on equipment.
Group net profit fell 66 percent to Japanese yen 3.04 billion (US$24 million), or Japanese yen 8.22 a share, in the six months ended Sept. 30, from Japanese yen 8.95 billion, or Japanese yen 24.18, in the year-earlier period.
That's in line with the company's May forecast of Japanese yen 3 billion profit. For the full year, Nikon expects a Japanese yen 11 billion loss, compared with its earlier forecast of zero profit.
Orders for Nikon steppers, which are used to etch chip circuitry by laser, are falling as chipmakers such as Toshiba Corp and Micron Technology Inc cut spending amid slumping demand for chips used in mobile phones and personal computers. Orders won't recover until the second half of next year, Nikon Executive Vice President Kenji Enya said.
"The outlook for the chip equipment industry is really bad," said Makoto Sakuma, who helps manage Japanese yen 100 billion in equities at Asahi Life Investment Management Co, which holds Nikon shares. "Why would chipmakers want to increase spending now?"
First-half sales rose 12 percent to Japanese yen 235.1 billion as Tokyo-based Nikon filled backlogged orders.
Nikon slashed 1,000 part-time jobs in the first half to 2,100.
It will cut an additional 600 part-time jobs in the second-half ending March next year, with 1,500 remaining, Enya said.
Nikon has about 36 percent of the worldwide market for stepper machines. Steppers accounted for 72 percent of group operating profit in the year ended March 31.
The company, which also makes digital cameras, said in September revenue may slump if the US economy slows because of the terrorist attacks.
Nikon's shares, down 12 percent this year, fell 1.7 percent to Japanese yen 1,070 on Japanese exchanges before the earnings were released. Rival Tokyo Electron Ltd's shares have risen 5 percent this year.
Orders for Japanese-made chipmaking equipment in September fell 76 percent -- the ninth straight monthly decline -- to Japanese yen 43.3 billion (US$359 million) from the year-earlier month, the Semiconductor Equipment Association of Japan said.
Orders are an indicator of earnings at chip equipment makers such as Nikon, Tokyo Electron Ltd and Advantest Corp because sales tend to lag orders by about half a year. The lead-time for steppers is typically about a year.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
SHOT IN THE ARM: The new system can be integrated with Avenger and Stinger missiles to bolster regional air defense capabilities, a defense ministry report said Domestically developed Land Sword II (陸射劍二) missiles were successfully launched and hit target drones during a live-fire exercise at the Jiupeng Military Base in Pingtung County yesterday. The missiles, developed by the Chungshan Institute of Science and Technology (CSIST), were originally scheduled to launch on Tuesday last week, after the Tomb Sweeping Day holiday long weekend, but were postponed to yesterday due to weather conditions. Local residents and military enthusiasts gathered outside the base to watch the missile tests, with the first one launching at 9:10am. The Land Sword II system, which is derived from the Sky Sword II (天劍二) series, was turned