GlobalWafers' third-quarter performance declined, but the outlook for the semiconductor industry is optimistic by 2025

In the third quarter of this year, GlobalWafers' revenue was NT$15.9 billion (approximately RMB 3.531 billion), with a single-quarter operating gross profit margin of 30.0% and an operating net profit margin of 20.2%, both of which declined from the previous quarter. The net profit after tax in the third quarter was NT$2.95 billion (approximately RMB 655 million), slightly better than the previous quarter. Chairman Xu Xiulan said that the recovery of the semiconductor wafer market is uneven, the production capacity of advanced processes is limited, and the production capacity of mature processes is in excess. Weak demand for automobiles and consumer electronics has had an impact on revenue in 2024. Although customer destocking has improved, the speed is lower than expected. GlobalWafers itself faced problems such as high electricity costs, high depreciation, and incomplete production capacity in the third quarter. At the same time, the silicon carbide (SiC) market has encountered challenges such as slowing growth in electric vehicles, oversupply, and price competition, resulting in a decline in the volume and price of silicon carbide, affecting GlobalWafers' product portfolio. Xu Xiulan predicts that as the production capacity of new factories is released, high depreciation will continue, but the semiconductor industry's prosperity is expected to steadily recover in 2025, mainly due to the growth in demand for AI and the increase in demand for high-end processing, which will drive the utilization rate of wafer fabs.