Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Chip equipment maker Siltronic says demand still high as end-markets slow

Published 02/02/2023, 06:24
Updated 02/02/2023, 07:32
© Reuters.
WAFGn
-

By Andrey Sychev and Anastasiia Kozlova

(Reuters) -German chip equipment supplier Siltronic on Thursday said demand for its wafers was still strong even as it warned a slowdown in end-markets could weigh on 2023 results.

The global technology industry has been battling a sharp and sudden downturn in demand since late 2022, as companies cut spending on tech products and services while consumers spend less on discretionary goods amid surging inflation.

The Munich-based supplier of silicon wafers for the semiconductor industry said demand for its products had remained high so far this year, but added some of its customers expected weaker orders in the first half of 2023.

Silicon wafers are vital components for semiconductors and serve as a basis for electronic chips used in products from smartphones and computers to electric vehicles and wind turbines.

German chipmaker Infineon, one of Siltronic's biggest customers, said on Thursday it saw significantly weaker demand in areas such as smartphones, PCs and data centres in the first quarter.

Siltronic, whose customers also include Intel (NASDAQ:INTC), TSMC and Samsung (LON:0593xq), reported a 28% jump in annual sales to a record-high of 1.8 billion euros ($2.0 billion), driven by price hikes and strong U.S. dollar.

The group, which did not provide detailed financial targets for 2023, also said it expected the high inflation to keep pushing up unit costs this year.

Its shares added 3% in the early Frankfurt trade after the earnings release.

($1 = 0.9076 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.