SK Siltron expected to see 20% revenue jump in 2022 despite chip downturn

Silicon wafer maker SK Siltron is expected to have posted 2.4 trillion won in revenue last year, TheElec has learned.

This will be 20% higher than its 2021 figure and was despite the downturn in the global chip market.

High demand for chips during the past five years has spurred SK Siltron’s growth.

In 2018 it recorded 1.34 trillion won in revenue; in 2019 it was 1.52 trillion won; 2020 1.7 trillion won and in 2021 1.84 trillion won.

Last year’s high growth also likely has to do with the downturn affecting the front-end companies like chipmakers first.

SK Siltron’s operation rate for its 12-inch silicon wafer production facilities stood at 95% even during the second half of last year.

This operation has been consistent up to February, unlike packaging and test companies and foundries that are seeing their operation rate dip below 70%.

SK Siltron’s operating profit last year is also expected to exceed 500 billion won, its highest figure to date.

However, this year, Samsung and SK Hynix are expected to procure fewer wafers compared to 2022.

The chipmakers have already started discussions with wafer suppliers to buy fewer units.

SK Hynix is also lowering its fab operation rates, starting with its fab in Wuxi.