Taiwan chipmaker UMC imposes strict cost controls over weak demand

Taiwanese chipmaker United Microelectronics Corp (UMC) said on Monday it was implementing strict cost controls because of soft demand and a weak outlook, in a further sign of pain facing the tech industry.

UMC, whose clients include U.S. company Qualcomm Inc and Germany’s Infineon, has benefited from a global semiconductor shortage that has kept chipmaker order books full in the past two years or so.

But demand has slumped in recent months as soaring inflation, rising interest rates and a gloomy world economic outlook have led consumers and businesses to tighten spending.