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's Executive Board anticipates a challenging market landscape characterized by negative exchange rate effects, ongoing price pressure outside existing long-term agreements, declining 200mm wafer business, and the full-year impact of the SD line closure.
The guidance is based 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 the previous year. The company expects a subdued start to the year despite AI-driven end markets supporting 300mm wafer volume.
CEO Dr. Michael Heckmeier explained that while AI-driven end markets are clearly supporting 300mm volume, positive developments in the memory segment have not yet fully reached the wafer industry. Many customers are currently benefiting from high prices while simultaneously being capacity-constrained, with these bottlenecks slowing growth in individual end markets such as smartphones and PCs.
The EBITDA margin is projected to be within the range of 20 to 24 percent, compared to 23.5 percent in 2025. Depreciation will increase significantly in 2026 due to investments in the 300mm business, with the Executive Board anticipating a range between EUR 490 and 520 million. This will result in operating profit being significantly below the previous year's preliminary figure of EUR -26 million.
Capital expenditure will 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 and audited Annual Report 2025 will be published on March 12, 2026, available through the company's website at https://www.siltronic.com.
The company's guidance reflects broader semiconductor industry challenges, including inventory adjustments in the power segment affecting 200mm wafer demand and persistent pricing pressures outside long-term agreements. The closure of the SD line, which ended production of epitaxial and polished wafers with diameters up to 150mm in Burghausen, represents a strategic shift as the company focuses resources on higher-growth segments.
For business and technology leaders, Siltronic's projections signal continued volatility in semiconductor supply chains, particularly for legacy technologies like 200mm wafers used in power applications. The company's reduced capital expenditure while maintaining significant depreciation costs suggests a period of consolidation following previous investments. The guidance also highlights how currency fluctuations continue to significantly impact global semiconductor manufacturers, with the EUR/USD exchange rate assumption representing a notable headwind compared to the previous year.
The company's forward-looking statements contain assumptions about macroeconomic conditions, exchange rates, competitive pressures, and market acceptance that could cause actual results to differ materially from projections. As one of the leading wafer manufacturers with global operations, Siltronic's performance serves as an indicator of broader semiconductor industry health, particularly for foundational materials that enable chips across computing, mobile, automotive, and renewable energy applications.
