MUNICH (dpa-AFX) - Chip industry supplier Siltronic could delay the ramp-up of its new Singapore plant if the market environment deteriorates further. "We could adjust the second ramp-up phase," Siltronic CEO Christoph von Plotho said Thursday in a conference call with analysts as the company published its final financial figures for 2022. But he said that would be decided later, when demand trends could be better assessed. According to current plans, the first wafers are to be delivered to customers at the beginning of 2024 from the new plant, which will cost around two billion euros.

After a boom with numerous supply bottlenecks during the Corona pandemic, the chip industry is currently weakening. Many companies had built up high inventories, which are now being used up for the time being. In addition, many people are currently holding back on buying consumer electronics in view of economic uncertainties and high inflation, as are companies on technology purchases.

Memory chip manufacturers in particular are currently under pressure. According to von Plotho, it is not possible to say exactly how long the inventory adjustment will take. But it is likely to be a matter of two or three quarters. "I can't imagine it being more than three quarters, though," he said. The chip industry has always been subject to sharp fluctuations, with slumps in demand and recoveries often following each other quickly.

Against this backdrop, Siltronic, which supplies silicon wafers for the production of electronic chips, had already issued a cautious outlook for 2023 in February. Accordingly, sales and operating profit are likely to fall significantly./mis/men/stk