Global Crystal is expected to be prosperous next year. Xu Xiulan: Supply will be tighter than this year

Global Silicon Wafer (6488), a major silicon wafer manufacturer, held a press conference today (3rd). Chairman Xu Xiulan said that market demand has been dominated by advanced processes such as AI and high-end applications, and has further expanded to mature processes. Silicon wafer production in 2027 The round supply will be tighter than in 2026. New long-term contracts have been negotiated with customers and price negotiations have also begun. Operations in the fourth quarter are expected to be better than those in the third quarter. Benefiting from the opening of new production capacity and rising prices, we are optimistic about operations next year.

Xu Xiulan pointed out that applications such as AI, high-efficiency computing (HPC), server memory and data centers are important driving forces for the growth of silicon wafer demand. As the supply and demand of some products tighten, demand visibility continues to improve. Price adjustments are being negotiated with customers. With the addition of new long-term contracts, coupled with the increase in the average unit price of spot goods and the improvement of product mix, it is expected to drive the average selling price (ASP) further upward in 2027.

Global Crystal said that after excluding new production lines that are still climbing, the existing 12-inch production capacity is fully loaded, and the demand for 8-inch and 6-inch products is also quite strong. The capacity utilization rate is close to full capacity, and the demand for some products has exceeded the supply. Xu Xiulan said that priority will be given to accelerating the ramp-up of new production capacity and eliminating bottlenecks in existing production lines. If long-term demand exceeds available production capacity, further expansion of production will be evaluated.

Xu Xiulan pointed out that the fire at the Novara plant in Italy affected production and shipments in the third quarter. At present, most major processes have been restored, and some back-end processes are still being rebuilt. The performance in the fourth quarter is expected to be better than that in the third quarter. In 2027, it is expected to benefit from demand growth, price improvement, and the gradual recovery of Novara's production capacity. With the addition of new production capacity in the United States, Italy, Japan, etc., the operating outlook is optimistic.