ABSTRACT: In view of the persistent tight supply of 12-inch silicon wafers, major wafer manufacturers around the world, including Japan's Shenggao, Germany's Silitronic and Universal Wafers, have begun to expand production plans. In contrast, the mainland is also accelerating the development of 12 inch large silicon wafers. According to the current planning of domestic enterprises, it is estimated that the domestic 12-inch silicon wafer production capacity will reach 1.45 million wafers per month by 2020, covering domestic demand.
Global Wafer held a board meeting on Friday (Oct. 5) to meet market demand for 12-inch silicon wafers and approved a new NT $13.4 billion ($438 million) investment in plant equipment by MEMC Korea Company, a South Korean subsidiary, according to Chimicrogrid.
It is reported that Universal Wafer will be located in South Korea's existing wafer factory (80 kilometers south of Seoul in Tian'an City), an expansion of 12 inches of wafer production line, a monthly production target of 150,000 pieces, is expected to start the end of the third quarter of 2009 Sample delivery, 2020 start production.
Global wafer revenue hit a new high
As the world's third largest supplier of silicon wafers, Universal Wafer launched the expansion of 12-inch silicon wafers in South Korea, which is another large plant to increase production of 12-inch silicon wafers after Japan's Shenggao, Korea's LG and Germany's Silitronic.
Global Wafer said that the capacity expansion is based on long-term contract orders confirmed by customers for capacity expansion, the new capacity will be fully provided to LTA long-term customers.
In the past two years, semiconductor silicon wafer supply is tight, prices continue to rise, downstream customers have signed long contracts to ensure supply. It is reported that Japan's Shenggao order has been signed to 2021, Taiwan Hejing also has customers to 2023 long-term contract. Global Wafer also disclosed before this, domestic and foreign factories 3-12 inch products continue to be fully loaded production, a number of important customers have begun to contract with Global Wafer after 2021 supply.
Global wafer revenue reached NT $15.162 billion ($490 million) in the third quarter of this year, up 5.5% from the second quarter, reaching a record high and has grown for 11 consecutive quarters, thanks to continued shortages in the semiconductor silicon wafer market.
Looking ahead, demand for new generation products including automotive electronics, 5G, memory, Internet of Things, artificial intelligence, high-speed computing and other applications continues to increase. Demand for semiconductor silicon wafers is growing steadily. Global wafers are optimistic about this year's growth.
Mainland accelerates 12 inch large silicon layout
In short supply, the price of 12-inch silicon wafers has risen since early 2017, and has risen by more than 20% over the course of 2017. Earlier this year, Japan's Senkao said at a French conference that it expects to adjust the price of 12-inch silicon wafers by 20% in 2018, and that the price increase in 2019 is a foregone conclusion.
In view of the tight supply of 12 inch silicon wafers, various manufacturers began to expand production plan. Japan's Seiko expects to increase its 12-inch silicon wafer production capacity by 110,000 units a month in the first half of 2009, Germany's Silitronic production capacity is not expected to be released until 2020, and global wafer production capacity is expected to be increased until 2020.
At the 2008 Seminar on the development of China's integrated circuit industry, Mr. Yang Deren, academician of the Chinese Academy of Sciences, said that the gap in silicon wafers will continue until 2020, and the shortage of silicon wafers will become a normal situation for the next two years. Currently, fewer than 10 companies can supply 12-inch silicon wafers worldwide, while the top five silicon wafer companies account for 97.8% of the market share.
At present, the mainland of China is also accelerating the development of 12 inch large silicon wafers. Shanghai Xinsheng Semiconductor has been polishing and epitaxial since 2015, and its production capacity has reached 100,000 pieces per month. Beijing Youyan Semiconductor has built the first domestic pilot production line of polishing wafers since 2006, with a production capacity of 50,000 pieces per month. Hong Technology cooperated with Zhenjiang University in 2003 and successfully developed silicon crystals and polished wafers in the laboratory. However, positive wafers are not yet available.
It is worth mentioning that from the current planning of domestic enterprises, it is estimated that by 2020, domestic 12-inch silicon wafer capacity can reach 1.45 million wafers per month, covering domestic demand. These include: Shanghai Xinsheng Semiconductor 300,000 pieces per month, Zhejiang Jinruihong 100,000 pieces per month, Central Leading Semiconductor 150,000 pieces per month, Beijing East 300,000 pieces per month, Ningxia Silver and 100,000 pieces per month, Zhengzhou Hejing 200,000 pieces per month, Shanghai Supersilicon 300,000 pieces per month.
