Tokyo Electron (TEL), under the leadership of President Hiromitsu Kamihara, has announced a significant shift towards a more aggressive strategy in response to the swift advancement of generative artificial intelligence (AI) and the recovery of capital expenditure in the storage sector. The new mid-term development plan, set to commence in 2025 and extend through 2029, will involve an investment of 1.5 trillion yen (about $10 billion), marking an 80% increase from the previous five-year plan.

This strategic move by TEL is underpinned by a strong belief in the potential of digital transformation, the miniaturization of chip manufacturing, and the demand for AI accelerators, graphics processing units (GPUs), and high-speed memory used in AI servers. These technologies rely on TEL's equipment to enhance chip performance while improving energy consumption and reducing carbon emissions.

To fully leverage the opportunities presented by these technological advancements, TEL has decided to increase its research and development investments and expand its workforce by 10,000 new employees over the next five years.

Currently ranked fourth in the global market, TEL is poised to challenge the leading positions held by Dutch company ASML, Applied Materials from the United States, and Lam Research. As the sole provider capable of supplying equipment for all four major semiconductor manufacturing processes, which include deposition, film, coating development, and cleaning, TEL is well-positioned to achieve its ambitious goal of becoming the world's largest semiconductor equipment supplier.