silicon wafers

1 days agoNews Editor

AI-driven demand lifts silicon wafer market as Taiwanese suppliers negotiate first price increase in three years

Taiwan’s silicon wafer market is showing signs of an earlier-than-expected recovery, with stronger AI-led demand for advanced manufacturing pushing customers to pull in orders and suppliers to negotiate higher contract prices. According to an Economic Daily News report cited by ABMedia, GlobalWafers, Taiwan Semiconductor Co., and Wafer Works are all seeing improving operating conditions, and new order pricing is moving in the same direction: up. Industry sources said shipments originally scheduled for completion by the end of this year have already been cleared, while some orders initially planned for early 2027 have started shipping one quarter ahead of schedule. GlobalWafers Chairperson Doris Hsu said next year should bring a sharp rise in revenue, with spot prices expected to climb from the second half of this year through the first quarter of next year. She also said advance payments tied to long-term agreements are likely to increase from the first half of next year. The report also highlighted recent earnings and fundraising activity at GlobalWafers and expansion financing plans at Wafer Works.

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GlobalWafers

2 months agoNews Editor

GlobalWafers posts NT$704 million in August profit as $1.432 billion GDR backs overseas expansion

GlobalWafers released its self-reported financial figures for August 2026 after recent share-price and trading-volume moves met the Taiwan OTC market’s disclosure threshold. The company reported consolidated revenue of NT$4.764 billion for the month, up 7.63% year over year, with pre-tax profit at NT$785 million, net profit attributable to the parent at NT$704 million, and earnings per share of NT$1.47. Net profit rose 144.98% from a year earlier. The report said profit growth outpaced revenue growth as the product mix shifted toward advanced-process specifications and higher-value silicon wafers, lifting both gross margin and operating margin. Separately, GlobalWafers had already completed pricing for a $1.432 billion global depositary receipt, or GDR, deal. The offering covered 50 million units at $28.64 each, equivalent to about NT$908.32 per common share, representing a 6.46% discount to the pricing-day close of NT$971. According to the report, the GDR drew about four times oversubscription from international institutional investors. The company plans to use the U.S. dollar proceeds for overseas purchases in local currencies and capital expenditures at subsidiaries, aiming to reduce foreign-exchange hedging costs and interest expenses in a high-rate environment.

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UBS

2 months agoNews Editor

UBS says wafer makers may need 40%+ price increases before adding new capacity

UBS said in a Sept. 18, 2026 global wafer industry report that tightening supply-demand conditions in 12-inch and 8-inch wafers are likely to persist over the next two years, with 12-inch utilization projected to rise from 84% in 2026 to 99% in 2028. The bank argued that the market may be treating wafer producers as beneficiaries of a cyclical rebound, but higher prices are also a prerequisite for capacity expansion after the downturn from 2023 to 2025 left manufacturers cautious. UBS estimated wafer prices could rise more than 20% annually in 2027 and 2028, similar to the 2017-2018 upcycle. Still, industry feedback cited in the report suggests customers may need to accept price increases of 40% to 50% or more before suppliers seriously consider building capacity for 2028 and beyond. Without expansion, UBS said utilization could reach 103.7% in 2029, with shortages beginning to show that year. The report also said Chinese wafer makers are expanding, but their effect on global supply-demand conditions in 2027 and 2028 should be limited, especially in the high-end segment. UBS maintained Buy ratings on Shin-Etsu Chemical, GlobalWafers and Siltronic, while keeping SUMCO at Neutral.

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UBS

2 months agoNews Editor

UBS says wafer makers may need 40%-50% price hikes before adding new capacity

UBS said in a Sept. 18, 2026 global wafer industry report that tighter supply-demand conditions in 12-inch and 8-inch wafers are likely to persist over the next two years, with 12-inch utilization projected to rise from 84% in 2026 to 99% by 2028. The bank argued that after the downcycle from 2023 to 2025, wafer manufacturers remain cautious on expansion, and price increases are not just a byproduct of a rebound but a condition for new capacity. According to UBS, the industry may need to see price gains of more than 40% to 50% before producers are willing to commit to expansion for 2028 and beyond. UBS also said demand upgrades were driven by stronger customer restocking and faster DRAM capacity additions. On stock coverage, the bank rated Shin-Etsu Chemical, GlobalWafers and Siltronic as Buy, while keeping SUMCO at Neutral. It also said Chinese capacity additions should have limited impact on the global high-end wafer market over 2027 to 2028.

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GlobalWafers

2 months agoNews Editor

GlobalWafers says part of its Novara plant in Italy has resumed operations, with EPI shipments restarting first

GlobalWafers on Sept. 14 issued a material information filing to update the market on the fire that hit its Novara facility in Italy in July. The company said the site has officially begun a partial restart and that overall recovery is running slightly ahead of its earlier plan. Among the restored operations, the epitaxy, or EPI, process resumed first, and the first batch of products has already been processed and shipped. The filing said the fire occurred on July 20 local time at the plant’s 8-inch production line. GlobalWafers added that all critical plant utility systems have now been restored, while some front-end manufacturing processes are gradually returning to production. It also said the newly expanded 12-inch line at the same site was not affected by the incident, with construction completed and customer qualification and mass production ramp work still moving forward. The company said the Novara plant carries comprehensive property insurance covering both property damage and business interruption losses, and that claims procedures are under way. It did not disclose the amount of the loss or the potential insurance payout.

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silicon wafers

3 months agoNews Editor

Silicon wafer prices post first notable increase since the pandemic, with 12-inch products already seeing new quotes

Silicon wafer prices have recorded their first clear increase since the COVID-19 pandemic, according to an Economic Daily report cited by ChainCatcher. The price adjustment covers the full range of wafer sizes, including 6-inch, 8-inch, and 12-inch products, with increases starting at 10%. The report said market participants view this as the first wafer price hike in more than three years. Major Taiwan suppliers including GlobalWafers, Taiwan Speciality Silicon, and Wafer Works could see improved revenue and profit if the higher pricing holds. GlobalWafers said demand in some end markets has been improving and inventory conditions across the supply chain are healthier than before, though actual pricing still depends on product mix, specifications, and customer profiles. Taiwan Speciality Silicon said it has begun discussing price adjustments with customers as cost pressure and demand provide support, and it expects second-half operations to outperform the first half. Wafer Works said it is actively negotiating revised quotes and continuing to advance products tied to advanced packaging. Industry analysis cited in the report linked the latest round of price increases to an AI-driven recovery in chip demand, with both advanced-node and mature-node usage rising. Some 12-inch polished wafers have already adopted new double-digit percentage quotes, while 8-inch and 6-inch products are being negotiated in the same direction.

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silicon wafers

3 months agoNews Editor

GlobalWafers Flags Near-Full Wafer Lines as AI and HBM Demand Tightens Supply

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.

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