Siltronic raises 2026 outlook as AI demand lifts wafer sales, prices (updated)

Siltronic AG

04/11/2026 06:42

Updates share move in paragraph 4, adds US tariff in paragraph 11 and CEO comments in paragraphs 6-8, 13 and 14
By Ozan Ergenay
Nov 4 (Reuters) - German semiconductor materials supplier Siltronic WAFGn.DE raised its 2026 revenue forecast for the second time this year on Wednesday, saying strong AI-related wafer demand and customer inventory building were lifting sales.
The outlook upgrade from one of the world's largest silicon-wafer suppliers adds to signs that a semiconductor upcycle is gaining traction, driven by AI-related demand, customer inventory rebuilding and early signs of firmer wafer pricing.
Siltronic now expects annual revenue to be in line with last year's revenue of €1.34 billion ($1.50 billion) and above analysts' expectations of €1.32 billion, in an LSEG-compiled poll. The company previously said sales would decline in a low- to mid-single-digit percentage range from the prior year.
Shares rose 7% as of 1021 GMT, taking this year's gain to 30% so far. 
The company said the expansion of its 300-mm wafer production capacity in Singapore was helping it meet AI-driven market growth. The 300 mm wafers are used for the most advanced, highest-volume chips, including many processors, GPUs, AI accelerators and advanced memory chips. 
"Some of our customers also are building inventories right now," CEO Michael Heckmeier said in a call with analysts and journalists.
Heckmeier said wafer pricing was showing early signs of recovery, with some 300-mm spot prices exceeding long-term contract levels.
Some wafer segments could face future supply tightness unless prices rise sufficiently to justify further capacity investments, he added.
"Siltronic's quarterly print came in ahead of expectations, beating sales by 6% and EBITDA by 7%, thanks to stronger volumes," analysts at Jefferies said in a note. 
The company also narrowed its full-year forecast for margins on earnings before interest, taxes, depreciation and amortization to 22% to 24% from 20% to 24% earlier.
     
MODEST TARIFF HIT
Earlier this year, the US announced a 15% tariff and a series of price floors on products made from polysilicon, the key raw material used in solar panels and semiconductors, with the measures set to take effect on December 4, 2026.
"It's the first wave of these tariffs that will unfortunately also hit us a little bit," Heckmeier said.
He added that new US tariffs on polysilicon products would create a low single-digit million-euro headwind next year, though he did not expect a material impact on Siltronic's 2026 results.
($1 = €0.8905)

(Reporting by Ozan Ergenay in Gdansk; Editing by Sonia Cheema and Harikrishnan Nair)
((Ozan.Ergenay@thomsonreuters.com; +48 58 746 90 34))