GlobalWafers Co (環球晶圓), the world’s third-largest silicon wafer supplier, yesterday projected its revenue would fall by a high single-digit percentage this year, as customers undergo a lengthy inventory correction cycle.
That contrasted with the Hsinchu-based company’s earlier forecast of flat revenue growth this year.
“I think this year revenue would be lower than last year,” when revenue hit an all-time high, GlobalWafers chairwoman Doris Hsu (徐秀蘭) told a virtual investors’ conference.
Photo: CNA
Customers are digesting inventories at a “much slower-than-expected” pace, Hsu said. “That is where the problem is. That is why, up to now, raw wafer revenue pickup is not so obvious yet.”
GlobalWafers said it expects customers to reduce their inventory to much healthier levels by the end of this year, setting the scene for a recovery next year.
“Next year would be a healthy and positive year with good growth, not only for chip, memory and foundry companies, but also for silicon wafer companies,” Hsu said.
GlobalWafers has no plans to slow its capacity expansion at its new 12-inch fabs in the US, Italy and other locations, she said.
On Monday, the company said in a regulatory filing that it planned to buy land and buildings in Malaysia for 146 million ringgit (US$32.63 million) to cope with customer demand amid ongoing geopolitical tensions.
GlobalWafers’ revenue fell 16.7 percent annually to NT$30.41 billion (US$930.31 million) in the first half of this year.
Revenue in the second half would be flat compared with the first half, the company said.
Demand for 12-inch wafers has been strong lately and demand for 8-inch wafers is recovering, while there are no signs of further deterioration for 6-inch wafers, it said.
Net profit last quarter contracted 18.5 percent to NT$2.88 billion, from NT$3.53 billion the previous quarter, having declined 39.9 percent from NT$4.79 billion a year earlier. Last quarter’s profit was the lowest in the past eight quarters.
Earnings per share dropped to NT$6.02 last quarter from NT$8.1 a quarter earlier and NT$11 a year earlier.
Gross margin fell to 32.3 percent, the weakest level since the fourth quarter of 2017, after a cyberattack in June caused production disruptions at many of its fabs.
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