GlobalWafers Signs 10-Year Contract with Micron, 12-Inch Capacity Near Full Load

GlobalWafers stated during its Q2 earnings call that its 12-inch, 8-inch, and 6-inch production lines are nearing full capacity, with some advanced 12-inch products facing supply constraints primarily due to a surge in demand for AI chips, HBM, and advanced packaging. Shin-Etsu Chemical reported a double-digit year-on-year and quarter-on-quarter increase in 12-inch shipments for Q2. According to Shenggao, customer inventory adjustments are nearing completion. Although SK Siltron's new production line capacity is gradually being released, it still struggles to meet the pace of order growth. The tight supply is driving changes in long-term contract models, with GlobalWafers signing a 10-year LTA (including advance payments) with Micron last month. Prices in the non-LTA market have started to rise and are expected to continue increasing in the second half of the year. GlobalWafers indicated that it is negotiating with customers to incorporate price adjustment mechanisms into new contracts, while Wistron emphasized the need for broad and meaningful price increases to support reinvestment. Industry insiders expect that as new factories from Samsung, SK Hynix, and Micron come online, wafer demand will double in the second half of 2027, potentially exacerbating supply shortages.

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