AI demand drives silicon wafer pull-in beyond expectations; GlobalWafers, Formosa Sumco, and Wafer Works new order quotes "set to rise"

The spring swallows have arrived early in the semiconductor silicon wafer market. Manufacturers reveal that AI is driving strong demand for advanced processes, and silicon wafer market conditions are stronger than expected. At this stage, customers' pull-in momentum is better than expected: goods originally scheduled to be fully pulled in by the end of this year have already been pulled in ahead of schedule, and some orders originally slated for shipment in early 2027 have also begun to be pulled in a quarter early. Quotes for newly received orders are "certain to rise."

As the recovery momentum in the silicon wafer market beats expectations, the operations of Taiwan-based manufacturers such as GlobalWafers, Formosa Sumco Technology, and Wafer Works are heating up in tandem.

It is understood that silicon wafer manufacturers are successively negotiating contract prices for new orders with customers. Progress varies, but they are invariably moving in the direction of price increases, and are expected to usher in the first wave of price hikes in more than three years. Although no single manufacturer will disclose the current status of long-term contract signings, all are working hard to increase the proportion of long-term contracts. Senior silicon wafer executives are also privately confident that next year's prices will definitely be better than this year's. The market believes that with strong order demand and rising quotes adding momentum, the future operations of GlobalWafers, Formosa Sumco Technology, and Wafer Works are promising.

GlobalWafers Chairwoman Doris Hsu predicted that next year will be a year of significant revenue growth, and expressed optimism that silicon wafer spot prices will rise in the second half of this year and the first quarter of next year. GlobalWafers will begin to see a significant increase in long-term contract prepayments in the first half of next year.

SEMI previously forecast that the global semiconductor materials market will show double-digit percentage growth both this year and next. Hsu is optimistic that silicon wafers are highly likely to also see substantial growth, mainly because customers are all expanding factories on a large scale; even old factories that have not yet expanded are investing in debottlenecking work, because they need to shorten timelines and increase shipment volumes earlier.

Hsu assesses that double-digit percentage growth in the global silicon wafer industry over the next two years is worth anticipating, with the main drivers coming from two aspects: first, continuously rising quotes, and second, increasing shipment volumes. In other words, the two major indicators of volume and price are rising in tandem.

Formosa Sumco Technology also optimistically expects that its performance in the second half of this year will likely be better than in the first half, continuing to meet customer demand, and it holds an optimistic attitude toward operations.

Wafer Works is actively negotiating adjustments to silicon wafer quotes with customers and adjusting its product mix, moving toward applications with better profits. In addition to deepening its existing silicon wafer products, it is simultaneously focusing on high-growth application areas such as advanced packaging and optical transmission, and is working closely with the world's leading wafer foundry customers.

Recently, square wafers have completed sample delivery, customer verification is progressing smoothly, and the company is actively participating in the development of structure-compensated bare die projects to expand its advanced packaging product portfolio.