German chip machines supplier Siltronic reported demand from customers for its wafers was even now solid even as it warned a slowdown in end-marketplaces could weigh on 2023 success.
The global technological innovation business has been battling a sharp and sudden downturn in desire considering the fact that late 2022, as corporations minimize shelling out on tech items and expert services while consumers commit a lot less on discretionary goods amid surging inflation.
The Munich-based mostly supplier of silicon wafers for the semiconductor market reported desire for its goods had remained high so significantly this yr, but some of its consumers anticipated weaker orders in the very first fifty percent of 2023.
Silicon wafers are important components for semiconductors and serve as the basis for digital chips made use of in products ranging from smartphones and computers to electric motor vehicles and wind turbines.
German chipmaker Infineon, 1 of Siltronic’s largest buyers, stated it observed drastically weaker need in spots this kind of as smartphones, PCs and information centres in the initial quarter.
Siltronic, whose shoppers also consist of Intel, TSMC and Samsung, claimed a 28 % leap in once-a-year gross sales to a document-substantial of 1.8 billion euros ($2. billion), driven by price tag hikes and a robust US greenback.
The group, which did not provide in depth economical targets for 2023, also explained it anticipated the large inflation to preserve pushing up unit charges this year.
Its shares added 3 % in the early Frankfurt trade immediately after the earnings release.