GlobalWafers said on its Q2 earnings call that its 12-inch, 8-inch and 6-inch wafer lines are running close to full capacity, with some advanced 12-inch products already constrained by supply, according to South Korean media outlet The Elec. The company attributed the squeeze to surging demand from AI chips, HBM and advanced packaging. Shin-Etsu Chemical posted double-digit growth in 12-inch shipments in the second quarter on both year-on-year and quarter-on-quarter bases. Sumco, meanwhile, said customer inventory adjustments appear close to completion, and SK Siltron's new lines are ramping output but still cannot keep pace with order growth. The supply tightness is changing long-term procurement patterns. GlobalWafers signed a 10-year LTA with Micron last month that includes prepayment. Prices outside long-term agreements have started to climb and are expected to keep rising in the second half of the year. The company is also discussing price adjustment mechanisms with customers for new contracts. Siltronic stressed that “broad and meaningful price increases” are needed to support reinvestment. Industry expectations point to wafer demand doubling in the second half of 2027 as new fabs from Samsung, SK Hynix and Micron come online, a scenario that could worsen the supply shortage.
GlobalWafers said on its Q2 earnings call that its 12-inch, 8-inch and 6-inch wafer lines are running close to full capacity, and some advanced 12-inch products have already hit supply constraints, according to South Korean media outlet The Elec. The company tied the tightness to surging demand for AI chips, HBM and advanced packaging.
Capacity and inventory signals from major suppliers
Shin-Etsu Chemical recorded double-digit growth in 12-inch wafer shipments in Q2, both year on year and quarter on quarter. Sumco said it judges customer inventory adjustments to be near completion. SK Siltron’s new production lines are gradually ramping up, but the additional capacity still cannot match the pace of order growth.
Long-term agreements and price moves
Supply tightness is shifting how long-term agreements work. GlobalWafers signed a 10-year LTA with Micron last month, with prepayment included. Non-LTA market prices have started to rise and are expected to move higher in the second half of the year.
GlobalWafers said it is discussing price adjustment mechanisms with customers for new contracts. Siltronic also stressed that “broad and meaningful price increases” are needed to support reinvestment.
Outlook
Industry expectations point to wafer demand doubling in the second half of 2027 as new fabs from Samsung, SK Hynix and Micron come online, a scenario that could deepen the supply shortage.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
