Siltronic, the German silicon-wafer producer, is optimistic about its future prospects. The company predicts a significant improvement in sales and earnings by 2028, thanks to various factors such as stable prices, exchange rate developments, and the rise of technologies like artificial intelligence, digitalization, and electromobility.
Sales Projection
Siltronic expects its sales to exceed 2.2 billion euros ($2.4 billion) by 2028. This projected growth is underpinned by the anticipated increase in demand for semiconductors and wafers in the coming years.
Earnings Margin
The company aims for the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to be between 30% and 39%.
Factors Driving Profitability
Siltronic identifies two main drivers for the expected increase in profitability. Firstly, the volume growth will contribute significantly, along with improved cost efficiency. These factors are expected to outpace inflation-related cost increases, thereby enhancing the company's financial performance.
Challenges in 2024
While Siltronic holds a positive long-term outlook, it anticipates some challenges in 2024. The first half of the year is expected to be impacted by high inventories at chip manufacturers and their customers. Additionally, the margin may be affected by start-up costs associated with the new production site in Singapore.
Investment Activity Outlook
The company highlights that it has already reached the peak of its investment activity in the current year. It expects expenditures to decrease by more than 50% in 2024 compared to the previous year.
Siltronic is poised for growth in the semiconductor industry, and it projects a prosperous future ahead.
PREVIOUS POST
