German chip parts supplier Siltronic posts 16% drop in 2023 sales

(Reuters) - German semiconductor equipment supplier Siltronic posted a 16% drop in annual sales on Thursday as chipmakers' high inventories led to much weaker demand for its silicon wafers.

The global tech industry has seen a big drop in demand since late 2022, as consumers curb spending and companies cut back on tech products and services.

The company, whose customers include Intel, TSMC and Samsung, reported preliminary 2023 revenue of 1.5 billion euros ($1.6 billion), matching analysts' average forecast in a poll by Vara Research.

"The main reason for the year-on-year decline was significantly weaker demand from the semiconductor industry due to increased inventories in the value chain," the company said.

Siltronic had in October forecast an up to 17% sales decline for the year.

The world's leading manufacturer of advanced chips TSMC, a key Siltronic customer, in January reported a 19% earnings drop for the October-December quarter.

The Munich-based group will publish its full 2023 results on March 12.

($1 = 0.9258 euros)

(Reporting by Ozan Ergenay and Eva Orsolya Papp in Gdansk; editing by Milla Nissi)