WACKER subsidiary Siltronic acquires majority ownership of joint venture with Samsung in Singapore

Siltronic AG, a 100-percent subsidiary of Wacker Chemie AG, is taking over a majority stake in its Siltronic Samsung Wafer Pte. Ltd. joint venture. Siltronic and Samsung Electronics Co. Ltd. announced the signing of the relevant contracts today.

So far, each company has held a 50-percent stake in the joint venture. Now, Siltronic is to subscribe for new shares as part of a capital increase. It will own 78 percent of the joint venture. Samsung’s stake will decrease to 22 percent as a result. At the same time, the joint venture is to repay all outstanding project loans of some €210 million. Siltronic will spend about €150 million in total on this. Consequently, the net financial debt of the WACKER Group will climb by the same amount. The full consolidation of the joint venture will increase Siltronic’s EBITDA. With full consolidation, Siltronic would have posted EBITDA of some €100 million in 2012 instead of €0.7 million as reported.

The joint venture will be renamed Siltronic Silicon Wafer Pte. Ltd. Amid the new ownership structure, Samsung will remain one of Siltronic’s key customers for 300 millimeter silicon wafers.

The share increase offers WACKER’s subsidiary Siltronic a number of strategic advantages for its global semiconductor business. “The transaction gives us majority ownership of one of the most modern, efficient and profitable production sites for 300 mm wafers in Asia,” explained Dr. Joachim Rauhut, Siltronic’s Supervisory Board chairman and the Executive Board member responsible at Wacker Chemie AG. He sees the acquisition as another logical step in Siltronic’s value-based strategy: “By integrating this plant, we are strengthening our 300 millimeter wafer business in Asia. Moreover, since Siltronic’s facilities for producing 200 mm wafers in Singapore are in the immediate vicinity, we will additionally benefit from synergies and cost advantages.”

About Siltronic Samsung Wafer

Siltronic and Samsung established Siltronic Samsung Wafer Pte. Ltd. as a joint venture in 2006, with each party holding an equal stake. In 2008, after only 18 months of construction, the first production facility in Singapore for 300 mm silicon wafers came on stream, as did Singapore’s first plant for 300 mm silicon ingots. The total investment for the production complex at Tampines Industrial Park amounted to over €900 million (SGD 1.6 billion). Now, the site has a monthly capacity of somewhat over 300,000 wafers, with around 650 employees.

About Siltronic

Siltronic is a global leader in the market for hyperpure silicon wafers and a partner to many top-tier chip manufacturers. Wacker Chemie AG’s semiconductor subsidiary develops and produces wafers with diameters up to 300 mm at sites in Europe, Asia and the USA. Silicon wafers form the basis of modern micro and nanoelectronics. Silicon electronic devices are used, for example, in computers, smart phones, flat-screen displays, navigation systems, engine controllers and many other applications.

This press release contains forward-looking statements based on assumptions and estimates of WACKER’s Executive Board. Although we assume the expectations in these forward-looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and uncertainties that may cause the actual figures to differ considerably from the forward-looking statements. Factors that may cause such discrepancies include, among other things, changes in the economic and business environment, variations in exchange and interest rates, the introduction of competing products, lack of acceptance for new products or services, and changes in corporate strategy. WACKER does not plan to update the forward-looking statements, nor does it assume the obligation to do so.