GlobalWafers 12-inch production sites fully utilized on rising demand

Taipei, May 6 (CNA) Taiwan-based GlobalWafers Co., the world's third-largest silicon wafer supplier, said Monday that utilization of its 12-inch sites across the globe "remained fully loaded" even as its net profit for the first quarter fell from the previous quarter.

In a statement, GlobalWafers said the global semiconductor industry as a whole has benefited from strong demand for artificial intelligence applications, pushing up the utilization rates and shipments of its silicon wafer plants.

In addition to 12-inch sites, GlobalWafers said, the utilization rates of small and mid-diameter wafer production lines have also seen a "meaningful" increase.

Despite those positive trends, GlobalWafers reported on Monday a first quarter net profit of NT$1.896 billion (US$60.19 million) that was down 14 percent from a quarter earlier, with earnings per share at NT$3.97.

Its consolidated sales for the first quarter also fell 3.6 percent from a quarter earlier to NT$13.985 billion, with the gross margin -- the difference between revenue and cost of goods sold -- at 20.8 percent, down 4.9 percentage points from the previous quarter.

GlobalWafers said the gross margin decline largely reflected the impact of rising operating costs for energy and raw materials and higher logistics expenses along with the ramp-up of new capacity.

In addition, the ending of one-time benefits recognized in the fourth quarter of 2025, such as a one-time contribution of an Italian government subsidy, also pushed down the gross margin in the first quarter, GlobalWafers said.

"As new capacity completes qualification by clients and ramps up progressively, upfront investments are expected to gradually translate into a more resilient and competitive earnings structure over the medium to long term," the company said.

GlobalWafers, which has used mergers and acquisitions to aggressively expand its network, currently operates 18 sites in nine countries, such as Taiwan, China, the United States, Japan, Denmark, South Korea, Italy, Malaysia and Singapore.

The silicon wafer supplier said its facility in Japan's Utsunomiya has become profitable, and that it was close to completing the installation of equipment in its expanding factory in Italy, which will soon lead to the ramp-up of volume production.

In the U.S., GlobalWafers said, its new Texas fab has been qualified by its major clients as it continues to install equipment there, while mass production of radio frequency and silicon photonic products began at its Missouri facility in the first quarter.