A chip off the old blockChipmaker UMC is having to batten down the hatches to weather lowered demand in the semiconductor industry.
- UMC has announced it will begin strict cost controls, due to significantly lowered demand for chipmaking and a pessimistic outlook for the rest of the year. Its share price rocketed with the covid-fueled demand for electronics, but has since slumped by 29% from its highs.
- The company spent $3bn over the course of 2022 to fulfill its orders, with one of its main clients being semiconductor giant Qualcomm. And despite the falling demand, UMC reported a nearly 15% YoY rise in its Q4 revenue this year.
- It’s not the only semiconductor manufacturer preparing for the storm. Taiwan Semiconductor Manufacturing Company also said it would be lowering its annual investment, despite reporting a 78% YoY increase in its Q4 profit last week.
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