JSR Corp, a Japanese chip materials maker, has significantly reduced its operating profit forecast for the current financial year. The company cited weak demand recovery for semiconductors and a slowdown in the biotech market as the reasons behind the revision. JSR now expects to achieve a profit of 16 billion yen ($107 million) in the fiscal year ending March 2024. This represents an 84% decrease compared to the same period in the previous year.
Investors in the chip industry are currently discussing the recovery path for the sector, which has been impacted by reduced demand for electronic devices such as smartphones and PCs. However, leading chipmakers like TSMC and Samsung Electronics anticipate a boost in investment in artificial intelligence in the coming year.
JSR CEO Eric Johnson remarked in a news conference that the company initially projected a turnaround in the second half of the year, but they no longer anticipate such an upturn.
