GlobalWafers held its board meeting to approve its financial statements for the third quarter ended on September 30, 2023 with the consolidated revenue reached NT$17.4 billion with -2.9% QoQ and -3.7% YoY; gross profit of NT$6.4 billion with -5.7% QoQ and -19.4% YoY, gross profit margin of 36.6% with -1.1% QoQ and -7.1YoY; operating income of NT$4.8 billion with -7.4% QoQ, -23.8% YoY, operating income margin of 27.8% with -1.3% QoQ and-7.3% YoY; net profit of NT$5.5 billion with 15.7% QoQ and 8.4% YoY.
Q323 revenue was impacted by customers’ inventory adjustments, and gross profit decreased slightly compared with Q223 mainly due to depreciation. Yet, along with the rise in the share price of Siltronic AG held by GlobalWafers and other operation performance, Q323 net profit margin of 31.9%, still hit the record high! Additionally, the NT$12.73 EPS recorded its highest performance over the same period!
The consolidated revenue for the first three quarters in 2023 reached NT$53.9 billion with 3.8% YoY; gross profit of NT$20.7 billion with -8.1% YoY, gross profit margin of 38.3% with -5.0% YoY; operating income of NT$16.1 billion with -13.3% YoY, operating income margin of 29.9% with -6.0% YoY; net profit of NT$15.3 billion, with 60.1% YoY, net profit margin of 28.4% with 10.0% YoY; EPS of NT$35.22 which was close to the full-year EPS of 2022 ( NT$35.31). For the first three quarters in 2023, GlobalWafers set new highest record in revenue, net profit margin and EPS!
The board meeting also approved the company to issue unsecured corporate bonds, with total amount not exceeding NT$14 billion. This plan aims to raise medium and long-term capitals to fund various initiatives, including replenish the working capital, support green investment plans, and purchase machine and equipment, etc.
While alleviated inflation catalyzed by global monetary policy, there are signs of recovery in the semiconductor industry driven by stabilized demand, balanced inventories, and growth in the automotive and industrial sectors. Nevertheless, based on industry cycle experience, since the semiconductor wafers sector is positioned in the upstream of the supply chain, its recovery is still a few months behind the end market.
The ongoing war, energy crises, and inflation concerns are also casting a shadow over the macro environment. Looking forward to 2024, underpinned by customers’ inventory reabsorption, the emergence of AI and automation, and the expansion of new facilities, an upturn is likely to happen barring any uncertainties such as geopolitics.
Downturn in the memory market led to production cuts and an increase in average selling prices (ASPs), alongside the adjustment in product mix, bringing equilibrium to the global memory market. Furthermore, technological advancements in compound semiconductors are revitalizing the demand and investment in this sector, further enhancing market penetration.
As a projected rebound in the semiconductor equipment market in 2024, the increase in downstream equipment investments is expected to stimulate demands for upstream materials. Standing as a reliable provider of a comprehensive product portfolio of high-quality wafers, GlobalWafers will continue to stably supply our customers’ needs. With a strong focus on research and development, GlobalWafers further extends its dedication to providing a full range of SiC and GaN products to meet diverse requirements.
Original – GlobalWafers