Siltronic Raises 2026 Sales Outlook as AI Pulls Memory Capacity From Phones

"With tight memory supply and high prices, capacity is increasingly being allocated to AI-related applications," Michael Heckmeier told analysts on the earnings call. He said this was putting more pressure on smartphones, where he expects wafer consumption to fall by about 14% in 2026. His outlook for PCs was unchanged, with a decline of about 10%. "AI is the main growth driver of today, with no signs of a slowdown visible," he said.

Siltronic supplies the raw silicon discs on which chipmakers build their products, so its order book shows early where chip production is heading. Heckmeier's account is that AI demand is supporting wafer volumes even as the two biggest consumer electronics markets shrink. He said a recovery in smartphones and PCs "could provide a natural hedge for overall wafer demand". He added that the build-out of data centre power is supporting industrial applications, which he projected would grow 13%.

Third-quarter sales were EUR 355.4 million, up 10.5% from the previous quarter and 18.3% from a year earlier, the company said in its results statement. EBITDA was EUR 81.3 million, a margin of 22.9%. Higher depreciation kept Siltronic in the red: EBIT was a loss of EUR 42.4 million and the net loss was EUR 55.0 million. Net cash flow was a positive EUR 57.9 million in the quarter, and net financial debt fell to EUR 619.9 million at the end of September from EUR 836.5 million at the end of 2025.

In the statement, Heckmeier pointed to "strong demand for 300 mm wafers and, increasingly, for 200 mm wafers". He also said some memory customers were restocking their inventories, which was giving wafer demand extra support this year.

Siltronic now expects 2026 sales to be roughly in line with last year, assuming a euro-dollar rate of 1.14 in the fourth quarter. It had previously forecast a low to mid-single-digit decline. It narrowed its EBITDA margin forecast to 22% to 24%, from 20% to 24%, and lowered its capital spending range to EUR 180 million to EUR 200 million, from EUR 180 million to EUR 220 million.

Prices have not kept up with volumes. "While this recovery is encouraging, pricing did not catch up meaningfully yet in Q3," Heckmeier said. He added that the first positive price moves were appearing and that some spot prices for 300 mm wafers were above the levels in long-term agreements. Chief financial officer Claudia Schmitt said pricing, product mix and currency effects "only played a minor role" in the quarter's sales growth.

This is why the company is not adding capacity yet. Heckmeier said Siltronic had not taken any major decisions to expand, and that "pricing needs to move further" before it would start a new wave of significant investment.

Schmitt said Siltronic does not give guidance for next year at this stage. She did say it expects headwinds in 2027 from freight, energy and some energy-related materials. Heckmeier put the cost of US tariffs on polysilicon next year at around a single-digit million euro amount.