Norway-based silicon material manufacturer REC Silicon reported a revenue of $29.7 million in the fourth quarter (Q4) of 2024, a 26.5% year-over-year (YoY) decline from $40.4 million.

The company’s earnings per share came at a loss of $0.75 per share, compared to a profit of $0.25 in Q4 2023.

It suffered an Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss of $5.3 million, compared to the $5.4 million loss in the same quarter the previous year.

The company reported a net loss of $313.5 million, a sharp YoY decline from a net profit of $104.4 million. Discontinued operations comprised $297.8 million of its total loss.

REC Silicon announced that it is shutting down its granular polysilicon business in Moses Lake and has discontinued operations in the solar-grade materials segment. The company shut down the facility to maintain stability and retain options for future opportunities.

Polysilicon production volume for Q4 reduced to 28 MT compared to 142 MT during Q3 2024. This reduction was planned to support REC Silicon’s exit from the Siemens polysilicon business.

The company’s total polysilicon sales volumes, including by-products, were 377 MT in Q4 2024 compared to 169 MT during the previous quarter. Semiconductor-grade polysilicon sales were at 216 MT in Q4, a 100% quarter-over-quarter (QoQ) increase from 108 MT. Other grade polysilicon sales volumes increased by 100 MT to 161 MT during the quarter.

Average polysilicon prices for the quarter decreased by 65.6% QoQ. Semiconductor-grade polysilicon average prices declined 61.5% QoQ due to the sales mix between Czochralski (CZ) and Float Zone (FZ) products. CZ and FZ are semiconductor manufacturing processes that help in creating high-efficiency products.

Full Year 2024

REC Silicon reported a revenue of $140.8 million in 2024, similar to the previous year.

The company’s earnings per share came in at a loss of $1.09 per share, compared to a profit of $0.07 in 2023.

It reported an EBITDA loss of $17.9 million, a 14% YoY improvement from a loss of $15.7 million.

The company suffered a net loss of $457.4 million, a 106% YoY decline from a net profit of $30.5 million.

The company noted that semiconductor foundry revenue per wafer reached a record high, driven by strong artificial intelligence (AI) chip demand, benefiting companies such as TSMC and NVIDIA. However, the overall materials sector saw limited impact due to market diversification. Factory utilization in the automotive and power segments remained low due to weak electric vehicle growth and slower-than-expected global auto sales.

Personal computer and smartphone sales reached a low point in mid-2024. However, overall factory utilization is expected to recover as chip inventories stabilize.

Market Outlook

REC Silicon expects uncertainty because of economic and geopolitical factors. Consumer electronics demand is projected to stay weak but improve in the second half of 2025, driven by data center investments in AI and cloud computing. The new Trump administration’s trade policies will influence market demand and timing, with potential trade frictions with China expected to impact global supply chains.

The company anticipates growth in global solar installations in 2025 despite reduced subsidy support. Fiscal deficits have led several European Union nations to cut incentives, while the U.S. outlook depends on pending Inflation Reduction Act support and energy policy decisions.

Asia’s silane market remains oversupplied; however, U.S. solar cell manufacturing in 2025 is expected to create domestic demand. Proposed tariffs and duties could help balance energy and critical mineral markets, supporting U.S. and European Union manufacturing. While near-term solar wafer capacity remains limited, U.S. and European expansion depends on future policy decisions.

The company said it focuses on immediate and short-term activities and is transitioning to a pure-play silicon gas producer, with the segment historically having better margin opportunity and less price volatility over shorter periods than polysilicon.