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GlobalWafers Co., Ltd. announced that GWC subsidiaries, GlobalWafers America (GWA) and MEMC LLC, have signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce for up to $400 million in direct funding under the CHIPS and Science Act to support GWC’s construction of advanced silicon wafer manufacturing facilities in Sherman, Texas and St. Peters, Missouri.
When complete, the Sherman, Texas complex will be the first fully integrated advanced silicon wafer production line built in the United States in over 20 years. GWA President Mark England remarked, “With the support of the Biden Administration, we are honored to be bringing to American shores the world’s most cutting-edge 300mm semiconductor wafer technology, filling what the White House has called a “key vulnerability” within the U.S. semiconductor supply chain. GlobalWafers is fully committed to the U.S. market, and we are excited to be playing a defining role in the nation’s semiconductor rebirth.”
With this proposed investment, GWA will also become a key node in Texas’s rapidly developing Silicon Prairie ecosystem. England added, “The state of Texas and the North Texas Texoma region have welcomed GWA with open arms and investment incentives. We are proud to reciprocate their hospitality by bringing to Sherman 1200 construction jobs and 750 high paying manufacturing jobs ranging from production operators to technicians and engineers between now and 2026.” As the only confirmed advanced node wafer manufacturer now investing in the United States, GWA will reduce the United States’ complete dependence on overseas manufacturing facilities to provide wafers for advanced chips.
Already home to semiconductor pioneer Texas Instruments (TI), the GlobalWafers investment will help make North Texas the most unique semiconductor ecosystem in the country as headquarters to the nation’s leading analogue and embedded semiconductor company AND home to the country’s only 300-mm silicon wafer manufacturer for advanced chips. TI Vice President of Worldwide Procurement and Logistics Rob Simpson congratulated both GlobalWafers and the U.S. Department of Commerce on this announcement, noting: “TI welcomes the investment in GlobalWafers America in North Texas, as it will be a very meaningful addition to the growing semiconductor ecosystem here.”
“Texas continues to lead the country as the Best State for Business,” said Governor Greg Abbott. “Companies like GlobalWafers America – the only advanced node wafer manufacturer in the U.S. – are investing in Texas because of our world-class business climate, business-friendly regulations, and young, growing, and highly skilled workforce. GlobalWafers is a crucial partner in our efforts to remain the nation’s No. 1 state for semiconductor manufacturing, and I thank them for choosing North Texas for their new facility.”
In support of national economic and resilience objectives, GWC is committed to developing in the United States a broad range of next-generation wafer technology. This includes establishing a Research and Development Center of Excellence in Sherman as well as building the United States’ only 300-mm manufacturing facility for advanced Silicon-On-Insulator (SOI) wafers at GWC’s MEMC LLC subsidiary in St. Peters, Missouri where the project brings an additional 500 construction jobs and 130 high quality manufacturing jobs.
As the only U.S. source of 300-mm SOI wafers, the MEMC investment will add a new level of resilience to the U.S. supply chain. On this point, Ashlie Wallace, Senior Vice President of Global Supply Chain at GlobalFoundries observed, “GlobalFoundries applauds the proposed CHIPS direct funding to GlobalWafers, a longstanding strategic partner of ours which provides an important domestic supply of silicon wafers critical for the essential semiconductors we manufacture.” Wallace added, “Federal investments across the U.S. semiconductor ecosystem are strengthening our industry and the supply chains that are vital to our customers and the economy.”
Noting the significance of this proposed funding to U.S. supply chain resilience efforts, U.S. Secretary of Commerce Gina Raimondo said, “President Biden is restoring our leadership in the entire semiconductor supply chain – from materials to manufacturing, to R&D. With this proposed investment, GlobalWafers will play a crucial role in bolstering America’s semiconductor supply chain by providing a domestic source of silicon wafers that are the backbone of advanced chips. As a result of this proposed investment, the Biden-Harris Administration is helping to secure our supply chains, which will create over 2,000 jobs across Texas and Missouri and ultimately lower costs and improve economic and national security for Americans.”
In addition to the direct grant funding announced today, GWC plans to apply for the U.S. Treasury Department’s Advanced Manufacturing Investment Credit (AMIC) of up to 25% of qualified expenditures at the GWA and MEMC LLC facilities.
From Hsinchu, Taiwan, GlobalWafers Chairwoman and CEO Doris Hsu expressed her personal thanks to the U.S. Congress, the Department of Commerce, and the Department of Treasury for CHIPS Act support: “Thanks to U.S. Government support, GlobalWafers is pleased to be a key node in the U.S. semiconductor supply chain. I’d like to particularly thank Secretary Raimondo for her partnership and vision throughout this journey. From day one, her encouragement gave me confidence that U.S. Government support for our investment would be significant and strategic to U.S. objectives.”
As a key ESG imperative, GlobalWafers companies across the globe practice green manufacturing and constantly seek to improve energy efficiency, water conservation, waste management and air pollution control. When at full ramp, GWC’s new and expansion facilities in Sherman and St. Peters will recycle up to half of the water used in production and have forward plans to utilize 100% renewable energy to manufacture the world’s most advanced silicon wafers. The GlobalWafers family of companies is committed to reducing our environmental footprint to the fullest extent possible.
GlobalWafers Co., Ltd., the world’s third largest supplier of semiconductor wafers, maintains 18 manufacturing and operational sites spanning three continents and nine countries. The company is a global leader in semiconductor technology, providing innovative and advanced technology solutions to leading chip manufacturers to transform lives around the world.
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GlobalWafers has been responding to the challenges of global climate risks by dedicating to environmental sustainability in its manufacturing processes, renewable energy adoption and business strategies.
GlobalWafers took the initiative in 2021 and committed to 100% renewable energy usage by 2050 in its global operations, and formally joined RE100 initiative in 2022 to reaffirm its determination to sustainable operation. As one of the very few semiconductor manufacturers that owns its solar power plants, GlobalWafers actively invests solar power plants to gain more flexibility and advantages in energy use, such as reducing carbon emissions, enhancing operational resilience, and meeting regulatory requirements more effectively. While the demand for clean energy continues to grow, GlobalWafers looks forward to positioning itself for long-term success in a rapidly evolving market.
GlobalWafers’ commitment to green wafer manufacturing is exemplified by its operation sites in Denmark and Italy. GlobalWafers’ Danish site, Topsil, is poised to become the first semiconductor crystal manufacturing site to utilize its own installed 100% green electricity during 2H of 2024.
By constructing a new solar park with an estimated capacity of 10.2MW, the power plant is expected to generate 9,500,000 kWh per year. Accordingly, Topsil is set to produce more electricity than it consumes, marking a significant milestone in GlobalWafers’ green manufacturing process.
Besides, GlobalWafers’ Italian site, MEMC Electronic Materials S.p.A., is also expected to reach 100% green electricity usage in the 12” new line during the capacity ramp-up stage in 2025. Leveraging power purchase agreements, installation of solar panels, and actively exploring alternative clean energy sources, the Italian site demonstrates GlobalWafers’ multifaceted approach to achieving its RE100 target.
With its global presence, GlobalWafers emphasizes local supply to minimize transportation distances, consequently reducing the carbon footprint and the potential impact of carbon tariffs, while also mitigating geopolitical risks. In a proactive move, GlobalWafers has implemented Internal Carbon Pricing mechanism, urging each site to consider the environmental impact of its operations. By accounting for the true cost of carbon emissions, GlobalWafers aims to foster a culture of informed decision-making that prioritizes sustainability.
To showcase solidarity with global transition towards net zero emission, GlobalWafers participates in the “Earth Hour 60” initiative again this year with affiliated group companies. On March 23rd at 8:30 pm, GlobalWafers’ Taiwan sites will switch off unnecessary lights and power-consuming equipment for one hour. This symbolic gesture underscores the GlobalWafers continuous commitment to energy conservation and carbon reduction.
As the world grapples with the challenges of climate change, GlobalWafers, as a long-term partner of its customers, not only actively considers implementing SBTi, but also remains steadfast in its pursuit of a sustainable environment. By embracing renewable energy, reducing carbon emissions, and strengthening green wafer manufacturing, GlobalWafers is leading the charge towards a greener, more sustainable future.
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GlobalWafers held its board meeting to approve 2023 financial results.
FY2023 consolidated revenue reached NT$70.7 billion with YoY 0.5%; gross profit of NT$26.4 billion, with -12.9% YoY, gross profit margin of 37.4%, with -5.8% YoY; operating income of NT$20.1 billion, with -19.7% YoY, operating income margin of 28.4%, with -7.1% YoY; profit before tax of NT$26.5 billion, with 31.8% YoY, profit before tax margin of 37.5%, with 8.9% YoY; net profit of NT$19.8 billion, with 28.6% YoY, net profit margin of 28.0%, with 6.1% YoY; EPS reached NT$45.41, with an increase of more than NT$10 compared with the previous year.
FY2023 consolidated revenue grew in 3 concessive years and rose to the highest again! FY2023 EPS, profit before tax margin and net profit margin all hit record high.
Despite the semiconductor industry in 2023 facing a slowdown in global economic and consumer electronics demand, coupled with increased inventory pressure, GlobalWafers benefited from a high proportion of LTAs and maintained high utilization rates for FZ wafers and compound semiconductor wafers, achieving continued growth in revenue throughout the year.
Looking ahead to 2024, as terminal market inventories are gradually reabsorbed, AI features will progressively integrate into personal computers, tablets, and smartphones, potentially driving a wave of upgrades. In the meantime, the AI ecosystem relies on supports from peripherals and semiconductor components, fueling demands for edge computing, high-performance computing (HPC) and spurring the development of low-power consumption-related components (SiC, ULLD, IGBT…).
More innovations are expected to be introduced, such as 5G, electrification, smart cockpits, and autonomous driving, contributing to the growth momentum in the semiconductor market. Besides, policies related to energy transition and net-zero carbon emissions in various countries have laid a long-term foundation for the development of compound semiconductors. In 2024, the market is expected to gradually recover, with memory leading the way in releasing signals.
However, the pace and extent of economic recovery depend on various factors, including different terminal applications and global economic uncertainties such as war, rising shipping costs, interest rate changes, and exchange rate fluctuations. Positioned in the upstream of the semiconductor industry, GlobalWafers anticipates a recovery a quarter or two later than downstream and expects a healthier performance in the second half of the year compared to the first half, considering that customers will prioritize depleting existing inventories.
With a comprehensive product spectrum ranging from 3” to 12” semiconductor wafers, GlobalWafers is able to cater for customers’ needs to cope with market fluctuations of individual products. Moreover, the Company has carried out expansion plans to get ready for the acceleration toward advanced processes.
GlobalWafers has become a long-term partner of customers with its focus on sustainability and the unique advantages of highly regionalized deployment that allows the Company to supply products in proximity, reducing the carbon footprint and the impact of carbon tariffs, while also mitigating geopolitical risks. With flexible asset allocation and a sound financial structure, GlobalWafers is resilient to market volatility and continues to create profits through prudent operations.
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Sino-American Silicon (SAS) and its semiconductor subsidiary, GlobalWafers, jointly announced their monthly revenues for January 2024. SAS reported a consolidated revenue of NT$ 6.17 billion, reflecting a year-on-year decrease of 7.3%, while GlobalWafers reported a consolidated revenue of NT$ 4.4 billion, indicating a year-on-year decrease of 25.9%.
The primary reasons for the decline in January revenue compared to the same period last year can be attributed to various factors. Firstly, the impact of the Noto Peninsula earthquake in Japan on January 1st resulted in a delay in the shipment of certain products from GlobalWafers’ Japanese subsidiary, with shipments rescheduled to early February.
Secondly, GlobalWafers adjusted its shipment plans for January and February to the end of the first quarter in response to customers’ inventory adjustments. Additionally, being positioned in the upstream of the semiconductor industry, the expected recovery timeline for wafer phase is anticipated to be one to two quarters later than downstream, as the majority of customers are still actively reducing existing inventory in the first quarter, with limited increases in capacity utilization.
According to the prevailing market sentiment, it is anticipated that the semiconductor industry will experience a more pronounced recovery in the second half of the year. We will proactively adjust production capacity and collaborate closely with customers to align with their recovery pace, ensuring a consistent and stable supply to meet customer demand.
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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.
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“The 31st International Optoelectronics Exposition (OPTO Taiwan)”, organized by Photonics Industry & Technology Development Association, is taking place in Taipei Nangang Exhibition Hall 1 from October 25th to 27th, for a three-day technological extravaganza. As a leading company in semiconductor technology, GlobalWafers unveils its latest achievements in compound semiconductors.
At this year’s exposition, GlobalWafers features 8”N type SiC crystal growth technology, Thinning technology of 6”and 8”SiC wafers, and high-value niche products in the GaN epitaxy field, demonstrating its technical prowess honed over many years in the compound semiconductor industry. SiC crystal growth presents challenges due to the need for growth in extremely high-temperature sealed environments, with factors like hot zone design and crucible materials in crystal growth furnace adding the complexity to equipment and operations.
GlobalWafers independently designs and develops 8”SiC-specific Physical Vapor Transport Method Grower (PVT) to further reduce crystal growth costs while achieving higher material quality control. Through outstanding technical control and production efficiency, as well as continuous research and development, GlobalWafers overcomes the technical challenges of SiC crystal growth, successfully moving forward to 8 inches, providing customers with high-quality, superior-performance SiC materials.
The high hardness and brittleness of SiC make subsequent wafering process extremely challenging. Leveraging its edge in wafer processing, GlobalWafers has successfully developed SiC ultra-thin thinning technology, showcasing 6” 90µm and 8”350µm ultra-thin polished SiC wafers at the exhibition. Ultra-thin SiC wafers offer advantages in lightweighting, heat dissipation, thermal conductivity, high-frequency operation, component miniaturization, and material costs, making them an ideal choice for high-performance semiconductor devices.
GlobalWafers’ SiC wafers include 4”~ 6” semi-insulating wafers and 6”~ 8”conductive SiC wafers, offering a comprehensive range of products to cater for diverse customer needs and expand into various fields of application.
Heteroepitaxy of GaN poses various technical challenges, such as lattice mismatch, stress, and defects. GlobalWafers focuses on research and development, launching a full range of GaN heteroepitaxy products, including silicon, SiC and sapphire substrates. A variety of substrate selections can meet different requirements and expand terminal applications in an all-round way.
With its wealth of semiconductor substrate technology and years of industry experience, GlobalWafers has been able to give full play to our strengths and provide more advanced and high-efficiency solutions for the rapidly growing electric vehicle market.
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