Silicon wafer suppliers continue to enjoy LTA pull-ins

Monica Chen, Hsinchu; Jessie Shen, DIGITIMES Asia 0

GlobalWafers. Credit: DIGITIMES

Silicon wafer suppliers including Sumco and GlobalWafers continue to enjoy strong demand for long-term agreements (LTA) contracts, with order visibility extended to 2024, according to industry sources.

With logic and memory foundries commencing their capacity expansion projects, silicon wafer companies are poised to enjoy a strong pull-in of orders over the next several years, the sources said.

Sumco said earlier this year that that the company had already seen its 300mm wafer capacity fully booked all the way through 2026, seen as a sign shortages in the industry may not abate anytime soon.

Commenting on 12-inch wafer demand in the first quarter of 2022, Sumco disclosed "further strong requests for more volume from logic and memory customers but unable to accommodate requests." As for 8-inch and smaller wafer demand, Sumco said that its supply will continue to fall short of demand.

GlobalWafers, which has failed to complete its planned takeover of Germany-based Siltronic, remains confident about its business prospects. The Taiwan-based supplier expects the global silicon wafer supply to remain tight through at least 2024.

GlobalWafers has struck 3-, 5- and 8-year LTAs with customers, with many of the contracts already prepaid, according to industry sources.

GlobalWafers reported revenue increased 7.1% sequentially and 0.6% on year to NT$5.73 billion (US$198.9 million) in March 2022. Revenue totaled NT$16.31 billion for the first quarter of 2022, rising 3.5% on quarter and 10.1% from a year earlier. The monthly and quarterly results both hit record highs.