By Nathan Vifflin
Feb 3 (Reuters) - German semiconductor wafer maker Siltronic warned on Tuesday its markets would remain challenging in 2026, even as it reported better-than-expected preliminary results for the fourth quarter aided by order timings.
Shares of the Munich-based company fell 4.4% by 0840 GMT.
Siltronic said it was too early to give detailed guidance for 2026, citing the first full-year impact from the closure of its Burghausen fabrication plant, pressure on prices and impact from a weak U.S. dollar. The pull-forward of some orders into the fourth quarter will also weigh on demand early this year.
"2026 will continue to present a challenging market environment," the company said in a statement.
Siltronic's cautious tone was echoed by Austrian circuit board maker AT&S, which on Tuesday flagged weak automotive and industrial demand, pricing pressure and dollar woes, despite solid demand in artificial-intelligence driven segments.
Without the recent plant closure and impact from exchange rates, sales in 2026 would be on par with last year, Siltronic CEO Michael Heckmeier said in the press release.
Investors are watching closely for signs that a prolonged downturn in chipmaking is easing, particularly in Europe, where markets dominated by automakers and industrial suppliers have been hit by weak demand and high costs in the years post-pandemic.
Analyst Veysel Taze from Metzler Capital said Siltronic's cautious outlook could push some investors to take profits, but added the wafer market recovery has begun and should improve through 2026 before accelerating next year.
Siltronic reported earnings before interest, taxes, depreciation and amortisation of 86 million euros ($102 million) for the fourth quarter, while sales were 372 million euros. Analysts polled by LSEG had expected 75.8 million and 333.7 million euros, respectively.
"Demand impulses across many parts of the end markets - particularly driven by AI - provided support, while price effects and the product mix continued to weigh on the business environment," Heckmeier said.
The quarterly sales were lifted by delivery shifts from the third quarter and early 2026, Siltronic added.
($1 = 0.8469 euros)
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi-Prussak)
