GlobalWafers Co., Taiwan’s largest silicon wafer manufacturer, expects operations to improve each quarter this year as advanced packaging demand drives recovery in the semiconductor market, Chairwoman Doris Hsu said.
The world’s third-largest wafer producer has recently seen an influx of urgent orders and increased customer inquiries about global localized solutions, according to Hsu. The company anticipates stronger performance in 2025 compared to 2024, with further acceleration expected in 2026.
“The first quarter will be the low point of the year,” Hsu said at an investor conference yesterday. She cited three positive market factors: localization trends, affordable AI models, and advanced packaging technologies.
GlobalWafers is expanding its global footprint, including investments in U.S. manufacturing facilities, as customers accelerate development of local supply chains in response to potential tariffs and rising transportation costs.
Demand for lower-cost AI models and advanced packaging technologies is driving up wafer capacity utilization rates, while downstream capacity expansion and advanced packaging architectures are further pushing demand upward.
The company’s gross margin fell to 31.6% last year due to higher electricity costs in Taiwan, increased depreciation expenses, and fixed costs from idle capacity. Hsu indicated that while margins will remain under pressure in the short term, they should gradually improve as semiconductor equipment utilization increases and as government subsidies from the U.S. and Italy are recognized.
