Mersen Delays Targets by Two Years on Weak Materials Demand for EVs

By Nathan Vifflin

(Reuters) -Mersen pushed back its financial targets until 2029 on Thursday, estimating a three year delay in the electric vehicle and silicon carbide (SiC) semiconductor markets.

Many chipmakers exposed to silicon carbide, a more efficient semiconductor material used to increase the range of EVs, have recently cut or delayed their financial targets.

The French advanced materials supplier expects to reach sales of around 1.7 billion euros ($1.8 billion) and an operating margin before non-recurring items of around 12% two years later than originally planned, it said in a press release ahead of its Capital Markets Day.

“2025 will be a year of transition for Mersen due to a temporary slowdown in the electric vehicle and SiC semiconductor markets,” it said in the statement.

Mersen’s shares rose 2.2% to 20 euros by 0929 GMT. Analyst Sandrine Cauvin from Gilbert Dupont said the change meant there was less room for further negative news down the line.

Cauvin added the news did not come as surprise after major Mersen customers like Wolfspeed recently flagged weaknesses in the silicon carbide market.

STMicroelectronics and Infineon, which like Wolfspeed are among the world’s largest silicon carbide chipmakers, have also warned of a subdued 2025.

Cauvin said the earnings visibility would remain low until there were signs of recovery in the EV and SiC markets.

($1 = 0.9499 euros)

(Reporting by Nathan Vifflin in Gdansk Editing by Milla Nissi)