GlobalWafers, Taiwan’s largest silicon wafer manufacturer, reported second-quarter net income of NT$1.68 billion (US$52 million), marking a 15.5% increase from the previous quarter but falling 41.6% from a year earlier. The results reflect the challenging operating environment facing semiconductor suppliers as they navigate trade tensions and elevated costs.
The world’s third-largest silicon wafer supplier posted quarterly revenue of NT$16.01 billion (US$493 million), up 2.7% sequentially and 4.5% annually. When measured in US dollars, revenue reached $520 million, rising 9.7% quarter-over-quarter, highlighting the impact of currency fluctuations on the company’s Taiwan dollar-denominated results.
Earnings per share improved to NT$3.52 from NT$3.05 in the first quarter, though they remained well below the NT$6.02 recorded a year ago. The company’s gross margin compressed to 25.8% from 26.4% in the previous quarter and 32.3% in the same period last year.
Chairwoman Doris Hsu attributed the margin pressure to Taiwan and South Korea experiencing their highest energy costs in a decade, along with the strengthening New Taiwan dollar. The company is simultaneously executing global expansion plans that are creating short-term financial headwinds, she noted during an investor conference.
GlobalWafers reduced its interest-bearing debt to NT$67.34 billion (US$2.1 billion) by the end of the second quarter, down 6.4% from the previous period. The company expects its financial position to strengthen further as government subsidies materialize and new production capacity comes online in the second half.
The manufacturer faces additional uncertainty from potential US semiconductor tariffs under a Section 232 national security investigation. While current “reciprocal” tariffs of 20% apply to Taiwan, semiconductors remain temporarily exempt, with results from the semiconductor-specific probe expected within weeks.
Despite these challenges, Hsu expressed cautious optimism, stating that customers’ inventory corrections are nearing completion and expecting full-year revenue to exceed 2024 levels when measured in US dollars. The company is discussing price adjustments with clients to offset higher costs, though no agreements have been finalized.
GlobalWafers’ global manufacturing footprint, spanning facilities in Taiwan, Japan, South Korea, the US, and Europe, provides strategic flexibility as trade policies evolve. The US market currently contributes less than 20% of total revenue, while new facilities in America and Italy have begun contributing to sales.
