Japan’s Advantest Sees AI Driving Demand for Chip Testing

Japan’s Advantest Corp has expressed its expectation that the growing use of high-end semiconductors for generative artificial intelligence applications will drive demand for its chip testing machines. Advantest CEO, Yoshiaki Yoshida, mentioned during an earnings briefing that although rapid growth in demand can be anticipated, concrete visibility is still lacking.

As a dominant player in chip testing equipment, with U.S. peer Teradyne Inc, Advantest foresees a contraction in the market this year due to customers holding excess inventory. In the April-June quarter, the company experienced a 68% decrease in its operating profit, which amounted to 14.3 billion yen ($101.8 million). Advantest attributed this decline to weakness in the smartphone market and a slowdown in investment in data centers. However, the company remains hopeful for a recovery next year.

Yoshida emphasized that despite the fall this year, he believes the company will eventually face a growth curve. Indeed, Advantest’s shares have already more than doubled in value since the beginning of the year.

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