Japan's JSR slashes profit forecast on chip recovery weakness (updated)

JSR

06/11/2023 07:30

(Adds executive comment)
       TOKYO, Nov 6 (Reuters) - Japanese chip materials maker
JSR Corp  4185.T  on Monday slashed its operating profit
forecast for the current financial year by 62%, citing a weak
recovery in demand for semiconductors and a slowdown in the
biotech market. 
    JSR, which has agreed to be bought by a government-backed
fund, now sees a profit of 16 billion yen ($107 million) in the
year ending on March 31, 2024, an 84% fall compared to the same
period a year earlier.
    Investors are debating the recovery path for the chip
industry which has been hit by a slowdown in demand for
electronics such as smartphones and PCs. 
        Leading chipmakers such as TSMC  2330.TW  and Samsung
Electronics  005930.KS  have pointed to a boost from investment
in artificial intelligence next year. 
        "We do believe that we have hit the bottom," JSR CEO
Eric Johnson told a news conference.
  

    
    ($1 = 149.5200 yen)

 (Reporting by Sam Nussey; Editing by Kim Coghill)
 ((sam.nussey@tr.com;))