GlobalWafers Inc (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said that a new 12-inch fab to be built in Italy would begin operations in the second half of next year to meet customer demand.
The fab, the first 12-inch fabrication facility in Italy, has received robust support from European customers, the Hsinchu-based company said.
Construction would begin as soon as subsidies are approved, it said, adding that it expects to receive funds from the Italian government and from a new EU project that aims to build a more resilient chip supply chain in Europe.
Photo: Grace Hung, Taipei Times
“Demand remains very healthy and very good. Supply is still very tight. For GlobalWafers, our capacity in 2022, 2023 and 2024 is basically sold out,” GlobalWafers chairwoman Doris Hsu (徐秀蘭) told a virtual investors’ conference.
“We still cannot provide all the volume requested by our customers,” Hsu said.
Amid robust demand from customers, GlobalWafers received NT$28.64 billion (US$1 billion) in prepayments as of the end of last year, it said, adding that the figure is still rising.
Average selling prices this year are expected to continuously increase, Hsu said.
The increase would further boost the firm’s gross margin this year from 38.1 percent last year, she said.
The new fab in Italy is part of a NT$100 billion project to expand capacity. The company also plans to invest in existing manufacturing sites in Taiwan, Denmark, Japan, South Korea and the US.
Russia’s invasion of Ukraine has not had a direct impact on the company, given that its European factories are in Denmark and Italy, Hsu said.
No customers have scaled back orders or expedited shipments, she added.
However, geopolitical tensions have increased transportation and energy costs at its European factories, she said.
The global chip crunch is expected to stretch into next year, in spite of recent signs of easing supply constraints, Hsu said, adding that the shortage is expected to be resolved in two to three years.
The firm reported NT$11.87 billion in net profit last year, down 10.4 percent from NT$13.1 billion in 2020, due to a 50 million euro (US$54.92 million) termination fee after the Siltronic AG takeover fell through. Earnings per share fell to NT$27.27 from NT$30.11 in 2020.
Gross margin last year increased to 38.1 percent from 37.2 percent in 2020, while revenue rose 10.4 percent to NT$61.13 billion, a historic high, the company said.
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