SINGAPORE-LISTED tech manufacturing counters’ top and bottom lines have taken a hit in the first quarter ended March, as the semiconductor industry grapples with weak end-consumer demand and a cyclical downturn.

Inflation and higher interest rates dampened end-consumer demand last year, said RHB senior research analyst Alfie Yeo, even as tech manufacturers rushed to produce components to support the recovery of supply chains that were disrupted during the pandemic.

“The demand and supply mismatch has thus developed into an oversupply of components, including PC and chip inventories in 2022,” Yeo said.