Global Silicon Wafer Sector: Implications from Siltronic’s earnings call: 2H26 pricing mediocre vs the bull camp’s view; no plans for new Capex

Research evidence excerpt

Global Silicon Wafer Sector: Implications from Siltronic’s earnings call: 2H26 pricing mediocre vs the bull camp’s view; no plans for new Capex

Jimmy Huang AC Asia Pacific Equity Research

(886-2) 2725-9865 03 August 2026 J P M O R G A N

jimmy.huang@jpmorgan.com

Siltronic is seeing positive pricing developments on low volumes in the non-LTA space.

LTA prices are unchanged. Spot prices remain lower than LTA prices and the reinvestment

level. For 200mm wafers, prices declined in 1H26, but are expected to stabilize in 2H26

vs in 1H26. Siltronic sees a strong demand environment for 200mm wafers in 2H26, but

Siltronic needs to adjust its staffing resources to meet the demand. Bottom line, for 2026

vs 2025, Siltronic expects increasing wafer area shipments but overall negative pricing

impact. Per Siltronic, there is a bit more wafer supply than demand but it could change

soon in the new few quarters.

• FabNext and capacity planning. Siltronic emphasized that prices need to rise above the

reinvestment level to justify future LTAs and further brownfield investments at its

Singapore FabNext site, given the significant increase in costs. Siltronic currently still has

equipment flowing into FabNext, and capacity and output continue to grow. However, the

company does not plan to initiate any new Capex at this stage, although lead times for

brownfield equipment are estimated at 18-24 months. Siltronic would rather be more

selective on volume and pricing than invest now to add new capacity and bring low-priced

volumes into a more expensive footprint. The company will continue to monitor pricing

and demand developments to better synchronize the timing of further capex and

incremental capacity additions.

• Long-term agreements (LTAs). Siltronic indicated memory customers approached