Siltronic sees no recovery in second half after quarterly revenue drop

German silicon wafer supplier Siltronic AG on Thursday reported a 14% drop in first quarter revenue compared to the previous three months and said it doesn’t expect a recovery in the second half of the year as demand remains muted.

The global tech industry has been battling a sharp and sudden downturn in demand since late 2022, as companies cut spending on tech products and services while consumers spend less on discretionary goods amid steep inflation.

The Munich-based firm, whose customers include Intel , TSMC and Samsung, said it expects an EBITDA margin of between 27% and 31% in the second quarter, with sales in line with the first quarter.