Siltronic

Siltronic, based in Munich, is one of the world's leading makers of hyperpure silicon wafers, the polished discs that serve as the base material for virtually every computer chip. That puts it at the very start of the semiconductor supply chain, exposed to both its long-term growth and its sharp cycles. Siltronic pays a dividend tied to profits, so the payout has swung with a volatile chip market and heavy investment in new capacity. The yield can look attractive, but it depends on the semiconductor cycle rather than on steady, dependable growth.