Silicon wafer shortage to last through 2020

Posted on Friday, Nov 02 2018 @ 11:05 CET by Thomas De Maesschalck
There's still a shortage of 200mm and 300mm wafers and it looks like the tight supply isn't expected to be resolved anytime soon. Due to strong demand, blank wafer makers are unable to keep up. GlobalWafers chairperson Doris Hsu recently told shareholders that tight supply is expected to last through 2020. Prices of 200mm and 300mm wafers are expected to rise further in 2019, while pricing of 150mm wafers is expected to remain flat.
Hsu made the remarks at the firm's recent investors' conference. She said that some customers have demanded more shipments of 6-inch or even smaller wafers to replenish their inventories, but some others have temporarily requested a slight cut in shipment volume.

In contrast, demand for 8-inch and 12-inch wafers has been quite strong. GlobalWafers has signed long-term supply contracts with customers, most of which will remain valid through 2020, Hsu said, adding that such contracts for large-size wafers now command 80-90% of her company's existing capacities.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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