Wacker to Increase Semiconductor-Grade Polysilicon Production

Wacker Chemie

Wacker Chemie plans to boost its high-purity semiconductor-grade polysilicon output amidst low solar-grade demand. This strategic shift addresses market challenges.

Polysilicon Sales Decline Amid Market Volatility

Polysilicon sales dropped 41pc in 2024, reaching €950mn, down from €1.6bn in 2023. Overall sales fell 11pc to €5.72bn. The polysilicon division's EBITDA decreased 39pc to €195mn due to lower prices and volumes. High energy costs in Germany and reduced plant utilization also contributed. The share of semiconductor-grade polysilicon increased in 2024. Wacker produces high-purity polysilicon in Burghausen, Germany, and Charleston, US. "Our business was hit by the slump in demand for solar-grade polysilicon and by the sustained excess capacity in China," stated CEO Christian Hartel. US anti-dumping tariff uncertainty also affected markets.

Semiconductor-Grade Business and Future Outlook

Furthermore, Wacker's semiconductor-grade polysilicon business performed well. "This confirms that we are on the right track strategically in this area," Hartel said. Chip content is rising in automotive, electronics, and renewables. Wacker Chemie anticipates long-term benefits from digitalization, renewable energy, electric vehicles, and energy conservation.

Silicone Sales Outperform with Capacity Expansion

Wacker's silicone division reported a 2pc sales increase to €2.81bn. EBITDA rose 46pc to €345mn, driven by specialty products and higher plant utilization. Wacker's Holla, Norway plant supplies metallurgical-grade silicon metal. New specialty silicone facilities in Tsukuba, Japan, and Jincheon, South Korea, serve automotive and construction. A new silicones production site in Karlovy Vary, Czech Republic, will start by late 2025, producing silicones for electric vehicles, healthcare, and grid expansion.