GlobalWafers Inc (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said its factories would continue to be fully utilized next year with no sign of wafer supply constraints easing.
The Hsinchu-based company said that most customers intend to negotiate new supply contracts with higher prices and longer durations to secure a supply of wafers for the next three to eight years, compared with the last upcycle in 2017 and 2018.
“Overall, market demand has been showing unique signals,” GlobalWafers chairwoman Doris Hsu (徐秀蘭) told an investors’ teleconference.
Photo: Grace Hung, Taipei Times
“That drives all GlobalWafers’ production lines to be fully utilized,” she added.
The manufacturer has received more than NT$6 billion (US$215.44 million) in prepaid orders, with more in the pipeline, she said.
As of Sept. 30, the company had booked an aggregated US$800 million in prepaid orders.
“Our view is that demand and average selling prices will remain strong in 2022,” Hsu said.
GlobalWafers reported that its net profit last quarter fell 8.4 percent to NT$3.11 billion from NT$3.39 billion a year earlier and 21.5 percent from NT$3.96 billion in the second quarter.
Earnings per share fell to NT$7.13, down from NT$7.78 a year ago and NT$9.09 in the second quarter.
The company attributed the decline to non-operating losses associated with its financial assets, including market-to-market losses on its holding of Siltronic AG shares and interest expenses related to convertible bonds.
Gross margin last quarter rose to 39.1 percent — the highest in nine quarters — up from 37.2 percent a year ago and 36.7 percent in the second quarter, company data showed.
Revenue last quarter increased to NT$15.36 billion — the highest in about 10 quarters.
GlobalWafers said it still seeks to buy Siltronic by the end of this year — the acquisition is subject to approval by antitrust regulators in China, Japan and Germany.
GlobalWafers is required to conclude the deal before it expires on Jan. 31 next year.
It would be difficult to ask for an extension, the company said.
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