GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, on Tuesday posted a record profit for last year on the back of more long-term supply agreements (LTA) with customers, despite industry headwinds.
Net profit grew 28.6 percent to NT$19.77 billion (US$626.2 million), compared with NT$15.37 billion in 2022. Earnings per share jumped to NT$45.41 from NT$35.31 the previous year.
Last year, revenue grew for the third straight year, up 0.5 percent to NT$70.65 billion, an all-time high, but gross margin dropped to 37.4 percent from 43.2 percent the previous year.
Photo: Grace Hung, Taipei Times
“Despite the semiconductor industry in 2023 facing a global economic slowdown and lower demand for consumer electronics, coupled with increased inventory pressure, GlobalWafers benefited from a high proportion of LTAs,” the company said in a statement.
The company said it maintained high factory utilization rates last year for float-zone silicon wafers and compound semiconductor wafers, and is positive about the demand outlook this year, citing some positive factors such as leaner supply chain inventory, and new artificial intelligence (AI) smartphones, tablets and computers.
GlobalWafers said AI technology would fuel edge-computing and high-performance computing demand, while spurring the development of low-power consumption components. As a result, the semiconductor industry would likely recover gradually this year, led by the memorychip segment.
The company is positive about its growth outlook, with global semiconductor industry sales forecast to increase by 13 to 20 percent this year, driven by rising demand for AI and new telecom technologies beyond 5G, it said.
GlobalWafers said that it expects a more marked recovery in the second half of this year after customers draw down inventories.
Average LTA prices this year would be higher than last year, as the company ramps up production at new factories with higher production costs, the company said, adding that it is resilient to market volatility and continues to make profits due to its prudent operating strategy.
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