The company expects non-LTA wafer prices to keep rising through the second half and Q1 next year as customers sign longer-term supply deals and utilization tightens across 6-inch, 8-inch and 12-inch lines.
GlobalWafers struck an upbeat tone on demand and pricing, saying capacity across key wafer sizes is running near full as artificial intelligence, high-performance computing and advanced packaging drive a broader semiconductor recovery. Chairwoman Doris Hsu said utilization for 6-inch, 8-inch and 12-inch lines is close to full, with certain advanced and specialty wafers already seeing tighter supply, while customers are increasingly willing to sign longer-term LTAs (long-term supply agreements) to secure AI chip materials. The company said demand strength is no longer limited to AI-linked applications and has spread to industrial, power management, memory and mature process technologies. Excluding new or expanded capacity still under certification or ramp-up, GaN (gallium nitride) lines are also near full utilization, SOI (silicon-on-insulator) lines are running at high rates, and SiC (silicon carbide) utilization is rising quickly and is expected to reach full capacity in the second half. GlobalWafers reported second-quarter consolidated revenue of NT$15.21 billion, up 8.8% from the prior quarter but down 5% from a year earlier. Gross margin was 20.6%, operating margin was 9.4%, and net profit rose to NT$3.78 billion, helped by recovering semiconductor demand, growth in higher-end applications and valuation gains from its Siltronic stake booked in non-operating income. EPS was NT$7.9 for the quarter and NT$11.87 for the first half. Management said the latest AI-driven cycle is changing contract behavior. Historically, LTAs were concentrated around three years, with the longest at five to eight years, but customers are now placing more weight on country of origin, localized production and supply-chain resilience. Hsu said GlobalWafers is discussing a new round of LTAs with multiple customers, expanding beyond memory into logic and specialty wafer products, and that some customers have for the first time specified that a set share of wafers must come from particular countries or regions. The company expects non-LTA wafer prices to continue rising through the second half of this year and the first quarter of next year, citing improving supply-demand dynamics and higher energy, logistics, raw material and labor costs. LTA pricing will continue to follow contract terms, although agreements with price-adjustment mechanisms could be revisited. Hsu said tightening in the wafer market "has already begun to happen," with stronger order activity and better visibility. GlobalWafers also highlighted a recently signed 10-year LTA with Micron, backed by $500 million in strategic funding support, which it described as the longest-duration and largest-value contract in its history. Hsu said the prepayment structure helps reduce capital costs and ease funding pressure tied to its U.S. investments. Looking ahead, the company said AI remains the main structural growth engine for semiconductor materials, with 12-inch wafers as the biggest growth driver and silicon photonics and SOI among the fastest-growing applications.