Siltronic Anticipates AI and Electric Vehicles to Drive Sales Growth Over Next Five Years
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Siltronic announced in its strategic update on Thursday that it anticipates substantial growth in both sales and profitability over the next five years, fueled by major trends including artificial intelligence, digitalization, and electric vehicles. The company is a German semiconductor materials manufacturer specializing in the production of silicon wafers and related products.
Siltronic plans to invest approximately €3 billion globally between 2021 and 2025. These investments will focus on expanding production capacity to meet the growing demand for silicon wafers and related products. The company expects global demand for silicon wafers to continue rising in the coming years, particularly in sectors such as electric vehicles, artificial intelligence, and 5G.
The rapid growth of the electric vehicle market is expected to drive increased demand for silicon wafers. Silicon wafers are a critical component in electric vehicle batteries, used for energy storage and transfer. Additionally, the rapid advancement of artificial intelligence technology will positively impact the silicon wafer market. AI requires substantial computing power, and silicon wafers are one of the key components enabling computational functions.
To meet the rising demand, Siltronic plans to enhance its production capacity. The company will achieve this through upgrades and expansions of existing facilities, as well as the construction of new plants. This initiative will enable Siltronic to better serve the needs of industries such as electric vehicles, artificial intelligence, and 5G.
Siltronic's CEO Christoph von Plotho stated that the company will continue to focus on technological innovation and product development to meet the ever-changing market demands. He also mentioned that the company will strengthen collaboration with customers to ensure timely product delivery and meet specific customer requirements.
Siltronic is confident about sales growth over the next five years, believing that rapid developments in areas such as artificial intelligence, digitalization, and electric vehicles will bring significant opportunities for the company. By increasing production capacity and continuous innovation, Siltronic will be able to meet the growing market demand and achieve impressive performance.