Siltronic to Discontinue Production of Small Diameter Wafers by 2025

On March 22, 2024, Siltronic AG announced its decision to gradually halt the production of polished and epitaxial wafers with small diameters (up to 150 mm) at its Burghausen site, aiming for completion by 2025. This decision will not affect the production of unpolished wafers. Siltronic, a key player in wafer manufacturing, has noted a shift in the semiconductor industry towards larger diameter wafers, which have seen greater technological advancements and higher demand.

According to Dr. Michael Heckmeier, CEO of Siltronic AG, small diameter wafers have been a part of the company's success since production began in 1968. However, the industry's evolution and a decrease in demand for these products have led to this strategic shift. Despite the cessation of small diameter wafer production, the Burghausen site remains vital for Siltronic, housing its global technology and R&D center, along with other significant operations.

The semiconductor industry has shifted considerably from small diameter wafers, constituting less than five percent of the market today, compared to over half just 25 years ago. The decrease in volume has negatively impacted earnings, prompting Siltronic to adopt socially responsible measures for reducing its workforce associated with small diameter wafers, aiming to avoid layoffs for operational reasons.