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.

Wacker Targets €1 Billion Polysilicon Sales in 2025 Amid Semiconductor Boom

Wacker

Semiconductor Demand Drives Recovery as Solar Oversupply Weighs on Market

German chemical giant Wacker Chemie aims to regain €1–1.3 billion in polysilicon sales in 2025 after a sharp decline in 2024. The company’s 2024 polysilicon revenue fell 41% year-on-year to €949 million, down from €1.6 billion in 2023. However, Wacker expects growing semiconductor demand to lift sales volumes, even as challenges persist in the solar-grade market.

Semiconductor Growth Fuels Polysilicon Expansion

Wacker is ramping up production of semiconductor-grade polysilicon at its Burghausen facility in Germany, with a new plant slated to launch in 2025. This expansion aligns with rising chip demand from the automotive and data center industries. The company anticipates increased volumes of higher-purity polysilicon, which commands better margins.

Meanwhile, the solar-grade polysilicon market remains oversupplied. Chinese producers have expanded output capacity beyond current solar panel installation needs, putting downward pressure on prices and margins.

Silicone Business to Grow by 10% in 2025

Wacker also forecasts 10% revenue growth in its silicones division in 2025. The company refines silicon metal in-house to produce silicones, which are used in diverse industrial applications. In 2024, silicone sales rose 2% to €2.81 billion, driven by increased sales of specialty products and higher plant utilization rates.

To meet future demand, Wacker has expanded production in Zhangjiagang, China, and is building a new specialty silicone facility in Karlovy Vary, Czech Republic. The new site is expected to begin operations by the end of 2025, potentially boosting sales in 2026.