Highlighted Q&As at the Interim Financial Briefing for the Fiscal Year Ending March 31, 2026

Q1When do you expect inventory reductions in the industrial equipment market to come to an end?

A1We believe that the worst of the inventory situation is over. We are having ongoing discussions with customers and anticipate a gradual recovery from next fiscal year.

Q2What factors are behind the considerable growth in the value of orders received in the Computer Networks Business?

A2With recent increases in information security threats in a wide range of fields, security and the rest of the IT market are performing strongly.
Other contributing factors include large-scale business discussions and multi-year maintenance and monitoring services and subscription-based contracts.

Q3AI and sensing technologies are cutting-edge technologies that are important for economic security, but will they have an impact (concerns or expectations) on business development for Tokyo Electron Device going forward?

A3AI and sensing are important technologies and we are also working in these areas at present. In terms of sensing technologies, we are rigorously checking final usage applications to avoid any unintended use.
The adoption of AI technologies by enterprises is increasing, but we are still feeling our way forward in some aspects. For example, hallucination and other issues are occurring with generative AI and AI agents, so we have started selling Arize AI as a quality assurance product.
We consider it important for us to continue efforts to catch up with these technologies.

Q4With damage from cyberattacks occurring frequently in Japan at present, are there any factors that could lead to an upturn in the performance of security products in the Computer Networks Business this fiscal year?

A4Cyberattacks that disrupt supply chains are on the rise. The concern is that AI-based attacks are more extensive and sophisticated than human-based attacks.
Against this background, customers are extremely sensitive to security measures this fiscal year, with new projects happening on a daily basis.
However, customers are investing systematically, so we expect this to contribute to business performance from next fiscal year.

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