(Reuters) – British chip components maker IQE on Tuesday said the recovery in the semiconductor industry would likely be slower-than-anticipated this year but it would improve in 2024 as customer demand picks up.
IQE, which makes “epi-wafers”, a type of advanced material used in products from laser hair removal to facial recognition sensors in iPhones, swung to a loss in the first-half hurt by lower sales and a supply glut.
All the major markets for chips – smartphones, personal computers and data centres – have shrunk this year, as both corporate customers and consumers scale back spending amid a weak global economy, high inflation and rising interest rates.
The company’s posted a core loss of 5.7 million pounds ($7.13 million) for the six months ended June 30, compared with a core profit of 12.3 million pounds last year.
Still, the Apple supplier said it expected core earnings to be profitable for 2023, adding that it saw double-digit revenue growth in the second half of 2023, compared to the first half.
($1 = 0.7998 pounds)
(Reporting by Anchal Rana and Chandini Monnappa in Bengaluru; Editing by Sonia Cheema and Rashmi Aich)
