December 8, 2011 -- Siltronic, Wacker Chemie AG’s semiconductor division, will close its Hikari, Japan, 200mm wafer production site in a streamlining effort.
Siltronic's Hikari site makes semiconductor and monocrystalline silicon ingots, with about 500 employees. The site will close by mid-2012, and the production volumes transferred to Siltronic’s existing 200mm wafer plants in Singapore and Portland (Oregon, USA), increasing capacity utilization in those facilities. Siltronic operates on a lead-site strategy, wherein wafer production can be concentrated at single sites according to individual diameters.
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The planned closure is expected to involve expenses of some €70 million. Thereof, around €45 million will be cash-relevant. These expenses had not been included in WACKER’s most recent earnings forecast for fiscal 2011 which calls for earnings before interest, taxes, depreciation and amortization (EBITDA) at last year’s level. The closure at Hikari will enable higher fixed-cost coverage as well as economies of scale, the company reports. Hikari staff will be offered severance packages, consultancy, and employment-search assistance, said Dr. Christoph von Plotho, Siltronic CEO.
Siltronic will keep a local sales force and application engineering presence in Japan.
Siltronic makes hyperpure silicon wafers for chip manufacturers. Learn more at www.wacker.com.