Semiconductor Wafer Wacker Closes Semiconductor Wafer Production in Japan

Editor: Marion Henig

Siltronic, Wacker Chemie AG’s semiconductor division, intends to streamline its 200 mm wafer production capacities. As a result, Siltronic plans to close its production site in Hikari, Japan, by mid-2012. The production volumes shall be transferred to existing plants in Singapore and Portland.

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Wacker Chemie will transfer its production volumes to Singapore (picture) and Portland, USA to increase the capacity utilization there. (Bild: Wacker Chemie)
Wacker Chemie will transfer its production volumes to Singapore (picture) and Portland, USA to increase the capacity utilization there. (Bild: Wacker Chemie)

Munich/Germany – Currently, Siltronic is producing at its Hikari site wafers for the semiconductor industry as well as monocrystalline silicon ingots, employing a staff of some 500. The German-based chemical group Wacker Chemie decided recently to transfer these production volumes to the existing 200 mm wafer plants in Singapore and Portland (Oregon, USA), optimizing capacity utilization at these sites’ facilities.

The planned closure is expected to involve expenses of some €70 million. Thereof, around €45 million will be cash-relevant. These expenses had not been included in Wacker’s most recent earnings forecast for fiscal 2011 which calls for earnings before interest, taxes, depreciation and amortization (EBITDA) at last year’s level.

By closing its Hikari site, Siltronic continues with the structural improvements and adapts its production capacities to market demand. Two years ago, Siltronic has implemented a lead-site strategy enabling wafer production to be concentrated at single sites according to individual diameters. This allows for a flexible reaction on changing market trends. Discontinuing production at Siltronic’s Hikari site translates into optimized utilization rates at the company’s remaining 200 mm production facilities, higher fixed-cost coverage as well as economies of scale, resulting in a sustainably improved cost position.

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