(Yicai Global) Feb. 1 -- Goodix Technology is one of many Chinese semiconductor manufacturers which are bracing for losses in 2022 as they are hit by weak global demand for consumer electronics such as mobile phones.

Goodix, which makes fingerprint recognition and touch chips that are used in smart devices, the Internet of Things and autos, is expecting losses of up to CNY900 million (USD133.4 million) last year, its first losses since it went public in October 2016, according to the Shenzhen-based firm’s latest earnings forecast.

Forty-one listed semiconductor firms out of the 80 to have submitted their performance expectations so far are anticipating losses, according to the latest data. And those in the consumer electronics semiconductor and chip design businesses are the hardest hit.

Weak demand in the cell phone market coupled with the tumbling price of key products have forced Goodix to make a provision of between CNY400 million and CNY500 million for a drop in inventory value, it said.

Smartphone shipments tumbled 17 percent in the fourth quarter last year from the same period the previous year and sales over the whole year sank 11 percent, according to Canalys data.

Last year there was a huge turnaround in the semiconductor industry both at home and abroad, said Wang Xiaolong, research director at market research firm ICwise. Although there was double-digit growth in the first half, sales tanked in the second half. This dragged down overall revenue growth to 8 percent last year from the year before.

The whole industry is still in the doldrums, and performance will most likely continue to slide in the first half, Wang said. However, there is reason for hope as new energy vehicles are replacing fossil fuel-powered cars and this will boost the automotive semiconductor industry, especially the automotive power semiconductor market.

Also, investments in infrastructure such as data centers, ultra-high voltage transmission projects, automotive charging and battery swap facilities as well as communication base stations will help boost demand, he added.

Editors: Tang Shihua, Kim Taylor