(Reuters) – IQE Plc warned on Friday that revenue for financial year 2019 would be lower-than-expected, as U.S. restrictions on China’s Huawei caused more order delays and several of its chip customers cut forecasts.
IQE, which makes semiconductor wafers for chips used in Apple Inc products among others, now expects revenue in the range of 140 million pounds to 160 million pounds for the financial year 2019, compared to consensus estimates of 175 million pounds.
The company said this was a larger impact than previously forecast for risks related specifically to Huawei, due to the far-reaching impact the sanctions have had on other companies and supply chains that are now becoming evident.
IQE said it has “very recently” received a reduction in forecasts from a number of chip customers, in its wireless and also in photonics units, hitting anticipated revenues for the second half.
“It is now clear that the impact of Huawei’s addition to the U.S. Bureau of Industry and Security’s Entity List is having far-reaching and long-lasting impacts on global supply chains,” Chief Executive Officer Drew Nelson said in a statement.
Nelson said IQE was operating in “unprecedented times” for the global semiconductor industry as geo-political conditions affect interconnected global supply chains.
IQE had said in May that less than 5% of its financial year 2019 revenue was exposed to risk from the Huawei issue.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr)