Wafer Works, a key player in the silicon wafer industry, announced plans to increase its cash capital by issuing up to 50 million shares, starting with an initial 30 million shares. At the current closing price of NT$34.5 per share, this move is expected to raise approximately NT$1.035 billion (US$32.3 million). The primary aim of this capital increase is to fund the purchase of research and development equipment and related capital expenditures. The issuance is expected to dilute existing shares by 5.56%.
Despite a challenging market, Wafer Works’ operations showed signs of improvement in the second quarter, with revenue rising by over 10%. However, the company’s cumulative revenue for the first seven months of the year still reflects an 18.4% decline compared to the previous year. Legal analysts are cautiously optimistic that Wafer Works’ performance in the third quarter will remain on par with the second quarter. The company’s net income per share for the first half of the year stands at NT$0.01.
Wafer Works continues to expand its production footprint across both sides of the Taiwan Strait, with significant capacity growth underway at its Erlin plant in Changhua and its Zhengzhou plant in Henan. The company aims to differentiate itself through innovative products and technology, with plans to bring the new facilities online by 2026, targeting a maximum monthly production capacity exceeding 200,000 wafers at each site.
