GlobalWafers Co. reported a sharp decline in 2024 earnings as investment losses from its Siltronic AG stake overshadowed steady operational performance in its core silicon wafer business.
The Taiwan-based wafer manufacturer’s earnings per share plunged to NT$21.06 ($0.65) from NT$45.41 a year earlier, according to a board meeting held on February 25. Annual net profit margin fell to 22.5% while consolidated revenue declined 11.4% to NT$62.6 billion ($1.94 billion).
The company attributed the earnings slump primarily to accounting losses from its 13.67% stake in German wafer maker Siltronic, whose share price dropped over 40% last year. Additional valuation losses came from exchangeable bonds worth €345.2 million issued in Q1 2024, which used Siltronic shares as the underlying asset.
Excluding these non-operational factors, GlobalWafers maintained a healthier adjusted net profit margin of 27.2% with adjusted EPS of NT$28.97.
Despite headwinds from lower average selling prices, rising electricity costs in Taiwan, and increased depreciation from capacity expansion, the company achieved sequential revenue growth for three consecutive quarters. Its Q4, second-half, and full-year 2024 revenues all ranked as the third highest in company history for their respective periods.
The board approved a cash dividend of NT$6 per share for the second half of 2024, bringing the full-year payout to NT$11 per share.
GlobalWafers continues to implement its NT$100 billion global expansion plan initiated in 2022. Most existing plant expansions have been completed and are now contributing to revenue. Its new U.S. facility has entered the sample production phase, positioning the company to strengthen the American semiconductor supply chain.
