Siltronic Stock: Shares Plummet on Grim Growth Outlook

Siltronic, the semiconductor wafer manufacturer, experienced a dramatic stock market downturn on Tuesday, with shares plummeting 14.7% to €37.04, marking their lowest level since late 2016. The steep decline, which positioned Siltronic as the MDAX's poorest performer, was triggered by several concerning announcements. The company reported a 7% revenue decrease to €1.4 billion for the previous year, alongside a 16% drop in operating results to €364 million. Adding to investor concerns, the company announced a significant dividend reduction from €1.20 to €0.20 per share, while also revealing stagnant revenue projections for the current year.

Market Challenges and Delayed Growth Targets

The company's medium-term growth objectives, initially set for 2028, have been postponed due to persistent market headwinds. High inventory levels among customers continue to hamper business development, despite stable selling prices. The outlook for 2025 appears particularly challenging, with the first half expected to underperform compared to the latter part of 2024. The anticipated growth impulses from AI-driven end markets have yet to materialize in wafer demand due to elevated inventory levels throughout the value chain. Siltronic's market capitalization has contracted to approximately €1.1 billion, reflecting a dramatic 75% value erosion since late 2021.