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Tokyo Electron expects cryogenic etching equipment to drive revenue by 2027 as NAND fab utilization recovers
Saturday, February 28, 2026 at 04:15 AM
Tokyo Electron observes rising utilization rates at customer NAND factories, signaling a transition toward new equipment investment. The company expects its advanced cryogenic etching technology to contribute significantly to revenue by calendar year 2027.
Context
Japanese equipment giant Tokyo Electron (TEL) has announced that its breakthrough cryogenic etching technology is expected to drive significant revenue by CY2027. This timing aligns with a broader recovery in 3D NAND fab utilization and a transition toward next-generation memory stacks. The company’s new equipment is designed to enable the production of 400-layer NAND by etching deep channel holes at speeds 2.5 to 3 times faster than conventional methods.
The adoption of this technology is critical as the industry faces scaling challenges in high-aspect-ratio (HAR) processes. Major manufacturers including Samsung Electronics and SK Hynix have already begun evaluating or demoing the tools, which utilize hydrogen fluoride (HF) at temperatures as low as -70°C. Beyond performance, the tools reduce CO2 emissions by 80% and lower power consumption by 40% compared to traditional etching solutions.
This growth trajectory is supported by a robust recovery in the memory market, with SEMI projecting NAND equipment sales to reach $16.9 billion by 2027. For Tokyo Electron, the move into cryogenic etching represents a strategic effort to gain market share in the conductor etching segment, a niche historically dominated by Lam Research.
Sources (7)
Q2 FY2026 (July - September 2025) Financial ...Research Update: Sandisk Corp. Outlook Revised To | S&P Global RatingsCryogenic Etch: A Key Enabler Of 3D NANDSK Hynix reportedly tests Tokyo Electron's cryogenic etching equipment, which is expected to simplify flash memory production-EEWORLDGlobal Semiconductor Equipment Sales Projected to Reach a Record of $156 Billion in 2027, SEMI ReportsTokyo Electron Deep Dive - Part 2 - by Moore Morris - Nomad SemiGlobal Semiconductor Equipment Sales Projected to Reach a Record of $156 Billion in 2027, SEMI Reports | SEMI
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