Siltronic AG Faces Challenges Amid Weak Wafer Demand

MÜNCHEN (dpa-AFX) - Siltronic AG, a leading German manufacturer of hyperpure silicon wafers, is experiencing continued weak demand for its products. The company, which specializes in non-polished and epitaxial coated wafers, is seeing its customers, particularly logic chip manufacturers, maintain high inventory levels, leading to reduced orders for new wafers. This trend has prompted Siltronic to adopt a more cautious outlook for its profit margins.

Financial Performance and Adjustments

In the first quarter of 2025, Siltronic reported sales of 345.8 million euros, a slight increase from 343.5 million euros in the same period the previous year. However, the company’s EBITDA declined, reflecting the challenges in the market. In response to these conditions, Siltronic has revised its full-year core profit margin target downward, although it has maintained its sales outlook despite the impact of US tariffs.

Market Reaction and Analyst Expectations

The company’s cautious stance on profit margins has been a focal point for analysts. Ahead of Siltronic’s financial conference on April 30, 2025, where it will present its quarterly results, six analysts have projected an average earnings per share (EPS) loss. This expectation underscores the market’s anticipation of continued challenges for the company.

Stock Performance and Historical Context

Siltronic’s stock has experienced significant volatility over the past year. As of April 28, 2025, the close price was 39 EUR, down from a 52-week high of 79.1 EUR in July 2024 and a low of 32 EUR in April 2025. The company’s market capitalization stands at 1.12 billion EUR, with a price-to-earnings ratio of 17.72. Investors who purchased Siltronic shares a year ago at 74.50 EUR would have seen a notable decline in value.

Regulatory Compliance

In compliance with the German Securities Trading Act, Siltronic has issued a voting rights announcement with the aim of Europe-wide distribution, as part of its regular regulatory disclosures.

Siltronic AG continues to navigate a challenging market environment, with strategic adjustments aimed at maintaining its position in the global semiconductor industry. For more information, visit Siltronic’s website .