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Companies

Chipmaker spending cuts hurt equipment supplier Disco

Japanese group faces 14% decline in nine-month profit

The slowdown in the smartphone market has weighed on Disco's earnings.

TOKYO -- Chipmaking equipment manufacturer Disco will take a hit to earnings as the Asian semiconductor makers that buy its machines reduce capital spending in line with falling memory prices.

Tokyo-based Disco's group operating profit looks set to drop 14% on the year to around 34.5 billion yen ($308 million) for the nine months through Dec. 31, while sales are on track to fall 5% to around 120 billion yen.

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