GlobalWafers asked to delay shipments
‘FINE-TUNING’: Customers have asked the company to postpone the delivery of some products from the end of this year to early next year amid flagging demand
GlobalWafers Co (環球晶圓) yesterday said its customers asked it to put off delivery of 8-inch wafers, as well as 12-inch wafers for smartphone-related applications, amid weakening demand.
The world’s third-largest supplier of silicon wafers had seemed immune to a correction in the semiconductor industry caused by bloated inventories along the supply chain.
Before last month, the Hsinchu-based company had received order corrections only for 6-inch wafers, which make up a small portion of its overall revenue.
GlobalWafers Co chairwoman Doris Hsu poses for a photograph at a news conference in Taipei
That helped GlobalWafers post record revenue of NT$6.27 billion (US$203 million) last month, bucking a broader downtrend in the industry.
However, “starting in September, a few customers told us that they intend to fine-tune [their delivery schedules] and hope to receive some of the products in January rather than at the end of this year” as planned, GlobalWafers chairperson Doris Hsu (徐秀蘭) told reporters on the sidelines of a news conference for the Semicon Taiwan trade show in Taipei.
“Some customers have received feedback from their clients, indicating that demand for end devices has slackened off. So they asked us to slow down the shipment of some products. However, discussions are still in a very early stage,” Hsu said.
Customers with greater exposure to consumer electronics or smartphones are in early discussions with GlobalWafers to postpone shipments of 8-inch wafers and 12-inch wafers by about two weeks, as they are under pressure to adjust inventory, she said.
Some customers want to adjust their order portfolios by reducing certain types of wafers while increasing other types, Hsu said.
The company allows such flexibility to its customers, she said.
All customers still honor their supply contracts, she added.
GlobalWafers has not seen any weakness in overall demand for 12-inch wafers and advanced process technology wafers amid robust demand for auto chips, Hsu said.
“Demand for 12-inch wafers remains firm,” she said.
The company is negotiating with its customers to sign new long-term supply agreements and already signed new deals this quarter, with order visibility stretching beyond 2025, she added.
GlobalWafers yesterday confirmed that it would break ground for a planned 12-inch silicon wafer fab in Texas at the end of November, following the passage of the Creating Helpful Initiatives to Produce Semiconductors and Science Act in the US.
The company is also developing new semiconductor wafer materials, also known as third-generation and fourth-generation semiconductors, to address calls for lower power consumption and better performance, it said.
The company has started shipping third-generation semiconductor wafers, or silicon carbide (SiC) wafers, to customers and expects to see revenue contribution from the products by next quarter or the first quarter of next year, Hsu said.
“Our SiC capacity has been full. We cannot fully satisfy customers’ demands,” Hsu said.
The company has obtained patents to develop fourth-generation semiconductor wafers, she said.
Many Taiwanese companies have been developing wafers, materials and equipment to make third-generation and fourth-generation semiconductor chips, but the nation still has a minor role in related supply chains, she added.
