Siltronic, a German semiconductor equipment supplier, announced a 16% drop in annual sales as chipmakers’ massive inventories resulted in substantially reduced demand.
Siltronic, a German semiconductor equipment supplier, reported a 16% reduction in yearly sales on Thursday as chipmakers’ huge stocks led to much lower demand for its silicon wafers.
Since late 2022, the global tech industry has suffered a significant reduction in demand as individuals stop spending and businesses reduce their reliance on technology products and services.
Siltronic, whose customers include Intel, TSMC, and Samsung, posted preliminary 2023 revenue of 1.5 billion euros ($1.6 billion), which matched analysts’ average prediction in a Vara Research survey.
“The main reason for the year-on-year decline was significantly weaker demand from the semiconductor industry due to increased inventories in the value chain,” according to the business.
In October, Siltronic predicted a 17% decrease in sales for the year.
The world’s leading producer of sophisticated chips In January, TSMC, a key Siltronic customer, reported a 19% decline in earnings for the October-December period.
The Munich-based company will release its complete 2023 findings on March 12.
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