IQE, a cutting-edge manufacturer of semiconductor wafer products and advanced material solutions for the global semiconductor industry, said that it’s seen weaker demand which has resulted in the build-up of inventory across the entire supply chain. That build-up can be traced back mid-January, according to the company.
It really should come as no surprise, however, when industry sales of chips fell 18.5% in January.
IQE described the situation as being the result of ‘near-term market softness’ and said that it was likely to be temporary, however it does suggest growing weakness in the sector.
IQE went on to say that it expects first half sales in 2023 to drop by some £30m. Last year it reported £86 million in revenues between January and June 2022.
While IQE is a small player in the semiconductor industry, it is not the first UK-quoted firm to see sales hit and while it’s optimistic that the drop in sales will be reversed in the second half, based on future demand from customers, its rather a ‘fingers-crossed’ approach, according to critics.
As for the wider semiconductor industry a 12% drop in 2023 is being pencilled in, up from just 3% at the start of the year.
