Siltronic AG: Siltronic adjusts forecast based on approval of greenfield investment at its site in Singapore
Ad hoc announcement / Disclosure of an inside information according to Article 17 MAR
Siltronic adjusts forecast based on approval of greenfield investment at its site in Singapore
Germany, Munich, July 27, 2021 - To support the strong demand of the tight semiconductor market, the Executive Board of Siltronic AG has decided to build a second 300 mm fab at its site in Singapore and the Supervisory Board today approved this investment. The project will support the strong market demand and expansion projects of important customers that cannot be served with current capacities. It is planned to secure the utilization of a large part of the new capacities through long-term agreements with prepayments.
Based on current planning, capex for this project will 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.
Based on the good cooperation with the Economic Development Board in Singapore the study phase was finished quickly and construction of the new fab is planned to start already in 2021.
Furthermore, it was decided to expand Siltronic's German site in Freiberg which will increase crystal pulling and expitaxy capacities.
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, capex is expected to raise from EUR 250 million to around EUR 400 million in 2021. The Executive Board now expects a decline in net cash flow compared to 2020 but it will stay slightly positive (so far: forecast of April 20, 2021: significant increase compared to 2020).
ISIN: DE000WAF3001 / DE000WAF3019
WKN: WAF300 / WAF301
Deutsche Boerse: WAF
Trading: Amtlicher Markt (Prime Standard),
Head of Investor Relations & Communications
Tel.: +49 (0)89 8564 3133
This adhoc announcement contains statements related to our future business and financial performance and future events or developments involving Siltronic that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Such statements are based on the current expectations and certain assumptions of the Siltronic-management, of which many are beyond the control of Siltronic. These are subject to a number of risks, uncertainties and factors. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siltronic may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siltronic neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes - in the applicable financial reporting framework not clearly defined - supplemental financial measures that are or may be alternative performance measures. These supplemental financial measures should not be viewed in isolation or as an alternative to measures of Siltronic's net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Explanations of financial measures used can be found in the Annual Report 2020 of Siltronic AG.