X-Fab shares tank as order visibility over auto chip worsen

** Shares of German semiconductor foundry X-FAB XFAB drop 9.9% at 08:28 GMT after it reported a weak order intake, and further poor visibility in automotive chip markets

** It would be the stock's largest single day loss since February last year, if it holds

** Analysts of Degroof Petercam downgraded the firm to "hold" from "buy", citing a weak order trend that threatens the start of 2026 as automotive demand recovers slower than expected

** "A negative surprise was the order intake amounting to a low $163 million, down 25% year-on-year and down 21% quarter-on-quarter" said KBC Securities analyst Guy Sips in a note

** Macroeconomic uncertainties resulting from geopolitical tensions and trade disputes are leading customers to use shorter cycle times to place orders later than usual, causing poor visibility, X-FAB said

** "There is growing uncertainty related to the situation surrounding Nexperia, and customers appear to be ordering later in time again", Degroof Petercam said in a note