Chip supplier Siltronic slips into the red

The Munich-based chip supplier Siltronic, which has a plant in Freiberg, Saxony, has recorded a drop in sales in the current year. According to the company, sales in the first nine months of the year fell by 7.3 percent compared to the same period last year.

The market environment was challenging, but the results were "solid", the company added. "In the third quarter, as expected, significant shifts in delivery volumes into the fourth quarter and negative currency effects were noticeable, which temporarily weakened sales and profitability," said Siltronic CEO Michael Heckmeier at the presentation of the figures on Tuesday.

Slipped into the red

Heckmeier continues to expect sales for 2025 to be in the mid-single-digit percentage range below the previous year's level of EUR 1.4 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to reach 22 to 24 percent, compared to the previously announced 21 to 25 percent. EBITDA fell by a good quarter to 65.7 million euros. At the bottom line, the company slipped into the red with a loss of just under 44 million euros, compared to a profit of just under 19 million euros a year ago.

Siltronic has 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 1,000 people on site.