Wacker Closes Japanese Semiconductor Wafer Production

Siltronic, Wacker Chemie's semiconductor division, has announced its intention to streamline its 200 mm wafer production capacities. As a result, Siltronic plans to close its production site in Hikari, Japan, by mid-2012. Hikari's production volumes will be transferred to Siltronic's existing 200 mm wafer plants in Singapore and Portland, Oregon, optimizing capacity utilization at these sites' facilities. The planned closure is expected to involve expenses of some €70 million. Thereof, around €45 million will be cash-relevant.

By closing its Hikari site, Siltronic continues with the structural improvements already executed and adapts its production capacities to market demand. Two years ago, Siltronic implemented a lead-site strategy enabling wafer production to be concentrated at single sites according to individual diameters. This allows for a flexible reaction on changing market trends. Discontinuing production at

Siltronic's Hikari site translates into optimized utilization rates at the company's remaining 200 mm production facilities, higher fixed-cost coverage as well as economies of scale, resulting in a  ustainably improved cost position.

"We are striving to mitigate effects on employees from the plant closure as much as we can", said Siltronic CEO Dr. Christoph von Plotho.