German chip kit supplier hit by tightened China export scrutiny
25/10/2023 17:57
MUNICH, Oct 25 (Reuters) - German chip-making kit
supplier Süss MicroTec SMHNn.DE cut its sales forecasts for
the second time in three months, blaming tightened government
controls for exports to China, sending shares tumbling 11%.
The south German company said on Wednesday that deliveries
worth 23.5 million euros ($24.86 million) were stuck at customs,
adding that, though rules had not changed, customs appeared to
have significantly stepped up their inspections for deliveries
to China since August.
German customs did not immediately respond to a request for
comment.
In July, the government urged German firms to reduce their
dependence on demand from China as part of a strategy of
"de-risking" its economic relationship with the superpower.
The uncertainty meant it was impossible to predict how many
machines would have been delivered by the end of the year. The
goods affected would have been especially lucrative, the
small-cap maker of lithography equipment and other chipmaking
gear said.
Süss Microtec expects sales of between 300 and 340 million
euros this year, compared to 299.1 million euros last year, a
smaller increase than they expected earlier. The company trimmed
its EBIT margin outlook to 4%-8% from an earlier 9%-11%.
($1 = 0.9454 euros)
(Reporting by Alexander Hübner, writing by Thomas Escritt;
Editing by Rod Nickel)
((mailto:alexander.huebner@thomsonreuters.com; +49 89
2421-8040; www.Reuters.com;))