Japan chemicals: Read-across from results overseas: Siltronic (April-June 2026). Repeatedly stresses need for significant price increases

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Japan chemicals: Read-across from results overseas: Siltronic (April-June 2026). Repeatedly stresses need for significant price increases

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30 Jul 2026 11:05:48 ET │ 9 pages

Japan chemicals

Read-across from results overseas: Siltronic (April-June 2026).

Repeatedly stresses need for significant price increases

CITI'S TAKE

Siltronic announced Q2 results earlier today, July 30. Q2 revenue

increased 5% QoQ in April-June, on the back of increased volumes but

stable prices/mix. 300mm demand recovered and there were some Yuta NishiyamaAC

positive spot price movements, although for very small volumes. However, +81-3-6776-4643

management has stated that current wafer pricing must improve and yuta.nishiyama@citi.com

reach sustainable reinvestment levels before it commits to building new

manufacturing capacity. 200mm volumes remained weak and prices

declined in 2026 H1 , but Siltronic expects volume recovery and price

stabilization (at low levels) from H2 . Wafer inventory has largely

normalized for memory and logic, with signs that memory customers have

begun building safety stocks. The firm expects gradual QoQ revenue

recoveries in Q3 and Q4. During the briefing, management repeatedly

emphasized the need for significant price increases.

• Strong message on price increases — Utilization rates are high currently in

the 300mm wafer market and spot prices, albeit for small volumes, are

trending upward. The new Singapore plant is ramping up smoothly, and

production capacity continues to increase (some ordered and paid-for

equipment has yet to be installed). Meanwhile, the new Singapore plant

still has capacity for brownfield investment, but equipment orders now

would require 18-24 months lead time. The firm explained that it has not