Siltronic AG Reports Solid Performance in 2023, Expects Continued Weak Demand in 2024

In a challenging market environment during 2023, Siltronic AG, a leader in the wafer manufacturing industry, disclosed its annual financial results highlighting resilience with a sales figure of EUR 1,513.8 million and an EBITDA of EUR 433.9 million. Despite a downturn in demand leading to a decrease from the previous year's figures, the company maintained a robust EBITDA margin at 28.7 percent. The decline is attributed mainly to increased inventory levels across the value chain.

Looking ahead to 2024, Siltronic anticipates ongoing weak demand for wafers, especially in the year's first half, expecting sales and EBITDA margins to hover around the previous year's figures. The commissioning of a new 300 mm fab in Singapore is anticipated to impact the margin negatively by up to three percentage points compared to 2023. Despite these short-term challenges, Siltronic remains optimistic about medium-term growth, driven by megatrends and a significant boom in AI technology, projecting a rise in sales to over EUR 2.2 billion and an EBITDA margin increase to the high 30’s by 2028.

The reported figures reflect a significant investment in the company’s future, with notably high capital expenditure directed towards expanding its manufacturing capabilities, notably in Singapore and Freiberg. Despite a net cash flow decline, Siltronic's financial position remains robust, supporting its continued investment in growth and innovation. Furthermore, a dividend of EUR 1.20 per share for 2023 has been proposed, underlying the company’s commitment to shareholder returns even amidst a challenging market.