Wafer Works says profit jumps sixfold on demand, margin

By Lisa Wang  /  Staff reporter

Wed, Nov 07, 2018 - Page 12

Silicon wafer manufacturer Wafer Works Corp (合晶) yesterday posted sixfold growth in quarterly net profit on the back of strong demand and better gross margin.

Wafer Works said in a statement on its Web site that it expects silicon wafer prices to continue to rise over the next few years, given limited new supply.

Silicon wafer shipments are this year to grow 7.1 percent year-on-year to 1.24 million square inches and continue to rise to 1.38 million square inches in 2021, indicating that demand remains robust, the company said, citing a forecast by global association SEMI.

In the third quarter, net profit swelled to NT$682.99 million (US$22.19 million), compared with NT$111.8 million in the second quarter, with earnings per share surging from NT$0.23 to NT$1.33, a company filing with the Taiwan Stock Exchanged showed.

Gross margin increased from 24.18 percent in the second quarter to 39.1 percent last quarter, the filing showed.

The company’s net profit in the first three quarters of this year hit its highest level in 10 years. As of Sept. 30, Wafer Works had made NT$1.38 billion, or NT$2.76 per share, compared with NT$187.53 million, or NT$0.39 per share, in the same period last year.

Revenue soared 45.34 percent to NT$6.86 billion in the first three quarters of the year, from NT$4.72 billion in the same period last year.

Wafer Works said in a statement on its Web site that it has built an installed capacity of 100,000 per month in the first phase of a new 8-inch fab in Zhengzhou, China, to cope with strong customer demand.

The facility is expected to reach full capacity of 200,000 wafers per month in the second half of this year, the statement said.