Michael Heckmeier, CEO of Siltronic, calls for Europe to strengthen its semiconductor industry as global competitors escalate investment efforts.

Siltronic, a major manufacturer of silicon wafers based in Munich, stands as the only Western company in its field. CEO Michael Heckmeier has highlighted the critical role of his company’s products in the global semiconductor supply chain. With 4,300 employees and annual revenues of €1.3 billion, Siltronic plays a pivotal part in Europe’s drive for semiconductor independence, producing essential wafers used in chip manufacturing.

Heckmeier expressed optimism about recent European efforts to boost the semiconductor industry, lauding initiatives like the EU Chips Act and its proposed €120 billion investment. However, he cautioned that such funding pales in comparison to South Korea’s staggering $600 billion program for private and public investments in its chip sector. Stressing the need for decisive action, he noted the current focus on enhancing the entire value chain, from foundational products like wafers to advanced chip production, as essential for Europe’s resilience in this critical industry.

Acknowledging past challenges, Heckmeier credited former political interventions for ensuring Siltronic’s independence. Years ago, the German government blocked the takeover of Siltronic by the Taiwanese company Globalwafers, preserving its unique position as a Western player in an Asia-dominated market. Siltronic continues to expand globally, with investments exceeding €2 billion in its Singapore facility. Heckmeier emphasized that without firms like Siltronic producing high-quality wafers, Europe cannot achieve its semiconductor goals or reduce reliance on imports from regions like Asia and the United States.