- Reuters
Chip parts supplier Siltronic's profit falls on high client inventories
The company, which makes silicon wafers used in semiconductor chips, posted quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) of 90.8 million euros ($97.3 million), down from 125.2 million euros a year earlier. Because of this, 2024 will likely be a transition year for Siltronic on the way to profitable growth, he added. Siltronic cut its 2024 outlook last week, expecting 2024 sales to be roughly 10% below those of last year, while full-year EBITDA is expected to be below 300 million euros.
- Reuters
Siltronic to stop small diameter wafer production at Burghausen site
About 400 people are employed to work on the small diameter wafers, about half of whom are on fixed-term or temporary contracts, the company said. Chief Executive Michael Heckmeier said that demand has shifted and small diameter wafers are "approaching the end of their life cycle," which is impacting earnings negatively.
- Reuters
German chip parts supplier Siltronic posts 16% drop in 2023 sales
The global tech industry has seen a big drop in demand since late 2022, as consumers curb spending and companies cut back on tech products and services. The company, whose customers include Intel, TSMC and Samsung, reported preliminary 2023 revenue of 1.5 billion euros ($1.6 billion), matching analysts' average forecast in a poll by Vara Research. "The main reason for the year-on-year decline was significantly weaker demand from the semiconductor industry due to increased inventories in the value chain," the company said.
