Analog semiconductor maker X-FAB flags high inventories in 2025 (updated)

X-Fab Silicon Foundries Europese Vennootschap

06/02/2025 17:32

(Adds X-FAB quote in paragraph 3, background paragraph 4)
       Feb 6 (Reuters) - Analog semiconductor manufacturer
X-FAB  XFAB.PA  flagged on Thursday persistent high inventories
at its automotive customers, but sees recovery in industrial and
medical demand in 2025.
    The company, based in Erfurt, Germany, said the inventory
correction in its automotive business will drag into 2025.
    "Inventory corrections in the automotive supply chain, to
which X-FAB has the highest exposure, only started in the second
half of last year and should continue well into 2025," it said
in its fourth quarter earnings report.
    X-FAB joins peers in warning of automotive inventory
corrections dragging into 2025, with customer Melexis  MLXS.BR 
noting on Wednesday car makers are delaying orders citing
overstocking.

 (Reporting by Nathan Vifflin. Editing by Jane Merriman and Toby
Chopra)
 ((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))