BE Semiconductor (BESI), a chipmaking equipment supplier, forecast a 15-25 percent drop in its fourth quarter revenue vs Q3 2022 as it warned that U.S. curbs on exports to China added more uncertainty to the industry outlook.
The Dutch firm is the latest semiconductor company to give downbeat guidance amid growing concerns about weakening consumer demand for electronic devices.
The maker of semiconductor assembly and packaging equipment said it was evaluating whether its products would be subject to the sweeping new U.S. restrictions on exporting semiconductors to China announced earlier this month.
ASML said on Wednesday it expected limited impact on its business as its products and most of their parts are made in Europe. However, indirect effects could still lead to its Chinese customers cutting orders.
Duiven, the Netherlands-based BESI supplies assembly equipment for semiconductor majors STMicroelectronics and Infineon Technologies.
BE Semiconductor reported that third-quarter orders fell 18.2 percent to 125.3 million euros ($122.7 million) from the prior quarter, as demand for high performance computing applications and Asian subcontractors weakened.
These were also lower compared to 2021 due to broad-based market decline, particularly in computing applications.
“The outlook for the assembly equipment market has turned more negative as industry conditions weakened, global GDP growth rates decelerated and customer caution increased,” BE Semiconductor Chief Executive Officer Richard Blickman said in a statement.
BE Semiconductor reported revenue of 168.8 million euros, a 21.1 percent decrease from the previous quarter. Revenue drop was due to lower demand by Chinese subcontractors and reduced sales for high-end mobile applications. Partially offset by increased automotive and hybrid bonding shipments, BE Semiconductor said.