GlobalWafers expects the US tariff increase on Chinese goods to have an insignificant impact on its performance this year, as the silicon wafer supplier will enjoy another year of record-high revenues.
GlobalWafers' revenue target for 2019 remains unchanged, according to company chairperson Doris Hsu. The Taiwan-based silicon wafer company expects to see its revenues this year outpace the record-high NT$59.06 billion (US$1.9 billion) reported for 2018.
GlobalWafers has manufacturing sites worldwide, said Hsu, adding that the company has secured mainly orders for the long-term supply from its major clients. As a result, the silicon wafer provider will be able to mitigate the impact of unfavorable global trade conditions as well as near-term macro headwinds, Hsu indicated.
In addition, the construction of GlobalWafers' new plant in South Korea is on track, Hsu noted. The new facility is scheduled to come online in the first half of 2020 to fulfill mainly supply contracts of five years and more.
Nevertheless, Hsu warned of growing uncertainty over customer demand after 2020. GlobalWafers has seen some of its customers take a wait-and-see attitude regarding whether they will sign new LTAs for after 2020, according to Hsu.
GlobalWafers saw its net profit increase 3.8% sequentially and 39% on year to a record high of NT$3.86 billion in the first quarter of 2019. EPS for the quarter came to NT$8.88.
Article translated by Jessie Shen
