Siltronic Projects Challenging 2026 with Sales Decline and Margin Pressure

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 company anticipates an EBITDA margin between 20 to 24 percent, compared to 23.5 percent in 2025, as it navigates what executives describe as a challenging market landscape.

The guidance accounts for several headwinds including unfavorable exchange rate effects, a declining 200 mm wafer business, continued price pressure outside long-term agreements, and the full-year impact of closing the SD production line. The Executive Board based its projections on an assumed exchange rate of EUR/USD 1.18, compared to EUR/USD 1.13 in the previous year. On a comparable basis excluding exchange rate effects and the SD line closure, sales are expected to be roughly in line with 2025 levels.

‘2026 will still be a challenging year, even though AI‑driven end markets are clearly supporting our 300 mm volume,’ explained Dr. Michael Heckmeier, CEO of Siltronic AG. ‘However, the 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.’

While end markets for 300 mm wafers continue to grow, Siltronic expects a decline in 200 mm wafers this year due to stronger inventory reduction by customers in the power segment. The company previously announced the end of production for epitaxial and polished wafers with diameters up to 150 mm at its Burghausen facility, which will affect the full financial year for the first time in 2026.

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) falling substantially below the previous year’s preliminary figure of EUR -26 million. Capital expenditure will be substantially reduced to between EUR 180 and 220 million, compared to EUR 369 million in 2025, though payments for capital expenditure will noticeably exceed this level, keeping net cash flow in the range of the previous year’s preliminary figure of EUR -85 million.

The full and audited Annual Report 2025 will be published on March 12, 2026. Siltronic’s guidance reflects the complex dynamics affecting semiconductor manufacturers as they balance investment in growing segments like 300 mm wafers while managing declines in legacy products and external economic pressures.

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