Siltronic to expand with second 300 mm fab in Singapore

Siltronic announces that the company has decided to build a second 300 mm fab at its site in Singapore to support the strong demand of the tight semiconductor market.

“Demand is increasing in all end markets. This trend is expected to continue and will promote further growth of our company. We support the expansion projects of important customers, which cannot be served with existing capacities by adding a new leading-edge and cost-efficient 300 mm fab in Singapore. Negotiations with customers about long-term agreements are progressing well”, says Dr. Christoph von Plotho, CEO of Siltronic AG, in a press release

Based on current planning Siltronic expects capex for this project to be around EUR 2 billion until the end of 2024. The project will be financed in particular by existing liquidity and free cash flow as well as customer prepayments, debt and ‑ if required ‑ equity measures.

The study phase was finished quickly and construction of the new fab is planned to start already in 2021. Furthermore, Siltronic has decided to expand crystal pulling and expitaxy capacities at its German site in Freiberg. With these investments Siltronic’s central R&D hub in Burghausen, providing technological support for the planned expansions, will be further strengthened.

Due to the expansion projects, the company says that its capex is expected to raise from EUR 250 million to around EUR 400 million in 2021. Net cash flow will decline compared to 2020 but it will stay slightly positive.

“With the decision to invest in a cost-efficient fab, we are setting the course for Siltronic AG’s continued successful future. With the new leading-edge production capacities, we will further strengthen our position as one of the technology leaders,” von Plotho continues..

After regulatory clearances have already been granted in various jurisdictions, GlobalWafers and Siltronic expect the voluntary public tender offer by GlobalWafers to be completed as planned in H2 2021 after receiving the pending approvals.

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