Siltronic scales down 150mm silicon wafer production in US and Germany

March 9, 2012 — Siltronic, the semiconductor subsidiary of Wacker Chemie AG, will stop producing 150mm silicon wafers at its Portland, OR, USA facility in Fall 2012, citing a need to streamline 150mm production capacity to keep in-line with market demand. The company will also consolidate 150mm production at its Burghausen, Germany, site.

Siltronic will continue to produce 200mm wafers at Portland. Portland’s current 750-person workforce will be reduced by about 350 workers, who will receive severance packages.

At Burghausen, Germany, Siltronic is adapting its 150mm wafer line to the permanently low level of demand, cutting about 150 jobs at this site. Implementation of the measures is scheduled for this year. The job cuts are to be made without involuntary layoffs, primarily by offering those affected jobs at the Group’s other units in Burghausen. The plan is underway with employee representatives.

Siltronic anticipates an overall earnings improvement of about €30 million per year, starting 2013, resulting from the better utilization rates at the lower production levels. These measures are expected to cause non-recurring expenses of about €15 million, which will be reflected in earnings before interest, taxes, appreciation and amortization (EBITDA).

Siltronic is implementing an ongoing strategy to concentrate silicon-wafer production at single sites, according to diameter. In late 2011, Siltronic closed its Hikari, Japan, 200mm wafer production site.

WACKER is a globally-active chemical company with some 16,300 employees and annual sales of around €4.75 billion (2010). Siltronic produces hyperpure silicon wafers and monocrystals for semiconductor components. Learn more at

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