(Reuters) -Oct 26 (Reuters) – German chip equipment supplier Siltronic improved its sales outlook on Thursday based on stronger revenue seen in the fourth quarter, forecasting a less severe slump this year than previously feared.
The company now expects sales to drop by up to 17% this year, versus a previously forecast fall of up to 19%.
Weaker demand due to inventory corrections by chip manufacturers and their customers was not expected to end in the final three months of the year, the company said. However, it expects Q4 sales to be higher than in Q3.
Siltronic said increased inventories would also have an impact on the year 2024.
The provider of silicon wafers for the semiconductor industry reported a 26% drop in its third-quarter sales to 349 million euros ($367.99 million).
The global tech industry has seen a big drop in demand since late 2022, as companies have cut back on tech products and services and consumers have less spare cash to spend on discretionary items due to high inflation.
TSMC, a key Siltronic customer, posted last week a 25% fall in third-quarter net profit on Thursday, beating expectations, and said the semiconductor industry could be poised for recovery.
($1 = 0.9484 euros)
(Reporting by Paolo Laudani and Ozan Ergenay in Gdansk, editing by Rachel More)
