EQS-News

Siltronic ends wafer production for 'small diameters' - Seite 2

Just 25 years ago, more than half of the silicon wafer market consisted of wafers with a diameter of up to 150 mm. Today, it is less than five percent, based on data published by the industry organization SEMI. This is the result of customers reducing or ceasing their production of small wafers due to the dynamic technological developments in the semiconductor industry. In addition, competition, particularly from China, is now clearly felt in the small diameters.

Socially responsible solutions for the core workforce

In the past financial year, SD wafers accounted for a single-digit percentage of the Group’s sales. The impact on earnings has already been clearly negative in recent months. Approximately 400 people are employed in the small diameters, about half of whom are on fixed-term and temporary contracts. The aim is to reduce the core workforce in a socially responsible manner through demographic change and partial retirement, and to avoid layoffs for operational reasons.

"Due to structural changes in the market, we assume that SD wafers will not recover and that their impact on earnings would be considerably negative in the coming years. We have therefore decided to take this difficult but necessary step. At the same time, our goal is to ensure that workforce reductions at Siltronic are socially responsible and no layoffs are made for operational reasons. After the end of the SD wafer production and the subsequent dismantling measures that may be necessary, our EBITDA margin will improve by around one to two percentage points in the medium term," adds Claudia Schmitt, CFO of Siltronic AG.
 

Contact:
Verena Stütze
Head of Investor Relations & Communications
Tel.: [phone]
E-Mail: [e-mail]

 

Company profile:
As one of the leading wafer manufacturers, Siltronic is globally oriented and operates production sites in Asia, Europe, and the USA. Silicon wafers are the foundation of the modern semiconductor industry and the basis for chips in all electronic applications – from computers and smartphones to electric cars and wind turbines. The international company is highly customer-oriented and focuses on quality, precision, innovation, and growth. Siltronic AG employs around 4,500 people worldwide and has been listed in the Prime Standard of the German Stock Exchange since 2015. Siltronic AG shares are included in both the MDAX and TecDAX stock market indices.