Siltronic AG has released its financial guidance for 2026, projecting group sales to be in the mid-single-digit percent range below the previous year's preliminary figure of EUR 1,347 million. The guidance assumes an exchange rate of EUR/USD 1.18, compared to EUR/USD 1.13 in the previous year, with negative currency effects contributing to the expected decline.
The company anticipates a challenging market landscape characterized by unfavorable exchange rates, ongoing price pressure outside existing long-term agreements, a decline in the 200 mm wafer business due to customer inventory reductions in the power segment, and the full-year impact of closing its SD production line for wafers up to 150 mm in diameter. On a comparable basis, excluding exchange rate effects and the SD line closure, sales are expected to be roughly in line with the previous year.
While end markets for 300 mm wafers are growing, supported by AI-driven demand, Siltronic CEO Dr. Michael Heckmeier noted that positive developments in the memory segment have not yet fully reached the wafer industry. "Many of our customers are currently benefiting from high prices while simultaneously being capacity-constrained - and these bottlenecks are also slowing growth in individual end markets such as smartphones and PCs," Heckmeier explained in the company's announcement, which was published via NewMediaWire.
The EBITDA margin is projected to be between 20 and 24 percent, compared to a preliminary 23.5 percent in 2025. Depreciation is expected to increase significantly to between EUR 490 and 520 million due to investments in the 300 mm business, resulting in operating profit (EBIT) being significantly below the previous year's preliminary figure of EUR -26 million.
Capital expenditure is forecast to be substantially reduced to between EUR 180 and 220 million, down from EUR 369 million in 2025. However, since payments for capital expenditure will noticeably exceed this level, net cash flow is expected to be in the range of the previous year's preliminary figure of EUR -85 million. The full audited Annual Report for 2025 will be published on March 12, 2026, according to the company's website.
This guidance matters because Siltronic is one of the world's leading wafer manufacturers, producing the silicon wafers that serve as the foundation for semiconductors in everything from computers and smartphones to electric vehicles and renewable energy systems. The projected sales decline and margin pressure reflect broader industry challenges, including currency volatility, shifting demand between wafer sizes, and capacity constraints that are slowing growth in key consumer electronics markets.
The implications extend to the global semiconductor supply chain, as wafer availability and pricing directly affect chip production costs and timelines. While AI-driven markets provide some support for 300 mm wafers, the decline in 200 mm business and continued price pressure outside long-term agreements suggest that not all segments of the semiconductor industry are experiencing uniform growth. Investors and industry observers will be watching how these headwinds affect Siltronic's competitive position and whether the company's reduced capital expenditure plans impact its ability to meet future demand in growing segments.
