(Reuters) - German semiconductor equipment supplier Siltronic posted a 16% drop in annual sales on Thursday as chipmakers' high inventories led to much weaker demand for its silicon wafers.
The global tech industry has seen a big drop in demand since late 2022, as consumers curb spending and companies cut back on tech products and services.
The company, whose customers include Intel (NASDAQ:INTC), TSMC and Samsung (LON:0593xq), reported preliminary 2023 revenue of 1.5 billion euros ($1.6 billion), matching analysts' average forecast in a poll by Vara Research.
"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," the company said.
Siltronic had in October forecast an up to 17% sales decline for the year.
The world's leading manufacturer of advanced chips TSMC, a key Siltronic customer, in January reported a 19% earnings drop for the October-December quarter.
The Munich-based group will publish its full 2023 results on March 12.
($1 = 0.9258 euros)