IQE shares slump nearly 20 per cent as it warns of falling semiconductor demand
IQE shares dropped nearly 20 per cent today after the semiconductor wafer maker warned that demand is expected to fall in the new year because existing customers have already built up large stocks.
In a pre-close trading update, IQE warned that destocking in the industry will “impact upon demand from existing customers” in the new year.
IQE, which is listed on AIM, makes semiconductor wafers for chips used in smartphones, including Apple Iphones.
The global semiconductor industry was hit by supply chain issues in the pandemic and has faced a slowdown as demand for smartphones cools.
While its outlook for 2023 is fairly bleak, it “remains confident in its diversification strategy”.
The Cardiff-headquartered firm said trading in 2022 has been “largely resilient”, with revenue from photonics partially offsetting anticipated softening in demand in the wireless markets.
It said that it expects revenue for the year ended 2022 to be about eight per cent higher than last year. However, on a constant currency basis, revenue is expected to be flat.
The firm said it will announce the date for reporting its full year results “in due course”.