Chip supplier Siltronic sees difficult business environment

The semiconductor manufacturer Siltronic, which has a plant in Freiberg, Saxony, expects the business environment to remain difficult after a bleak 2025. Price pressure in the industry will continue in 2026 outside of long-term contracts, the company announced in the course of publishing its preliminary results for 2025. This would be compounded by negative exchange rate effects.

The company closed its site for the production of smaller wafers for the chip industry in Burghausen, Bavaria, last year. This will leave its mark, it added. There is no detailed forecast for the new year yet. Investors will probably have to wait until the final annual figures are presented in March, when information on the net result for 2025 is also expected.

Parent company Wacker Chemie posts record loss

Siltronic is part of Wacker Chemie AG. A few days ago, the Group reported a record loss of 800 million euros for the past year and slipped deep into the red. Sales at chip supplier Siltronic fell by 4.7 percent to 1.35 billion euros in 2025. At 317 million euros, earnings before interest, taxes, depreciation and amortization (EBITDA) were around 13 percent down on the previous year, it added.

Siltronic AG, which is listed on the SDax index of small companies, had expanded its production in Freiberg in 2023. According to the company, it has invested around one billion euros in the site since 1995 and employs 880 people on site.