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GlobalWafers CEO: 12-inch silicon wafer market enters price hike phase, new LTA prices up over 50% for some
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According to a report from Taiwan's Commercial Times and cited by Cailianshe on September 23, the semiconductor 12-inch silicon wafer market is entering a price hike phase driven by AI logic chip and memory expansion. Industry surveys indicate that new long-term contract prices for 12-inch epitaxial wafers are expected to rise 15-25%, while polished wafer prices may increase by over 40%, with some second-tier customers facing hikes exceeding 50%. Further increases are anticipated in 2028. Spot prices for 12-inch wafers are already rising, and analysts forecast that spot prices will surpass existing long-term contract prices in the fourth quarter of this year, supporting renegotiations for 2027 contracts. Many contracts signed during the pandemic are expiring this year and next, necessitating new agreements. GlobalWafers CEO Doris Hsu confirmed that the silicon wafer market has entered a price increase phase, with both spot and long-term contract prices rising, reflecting changing customer attitudes toward future demand and supply visibility.
Source report
September 23 (Shanghai) — As AI logic chips and memory production expand simultaneously, supply and demand for 12-inch semiconductor silicon wafers are tightening, with long-term contract price increases for 2027 gradually being established.
According to Taiwan's Commercial Times today, industry surveys indicate that new long-term contract prices for 12-inch epitaxial wafers (Epi Wafers) are expected to rise by 15%–25%, while polished wafers may see increases of 40% or more. Some second-tier customers face price hikes exceeding 50%, with further room for increases in 2028.
- 12-inch wafers primarily serve advanced process demands for computing power, smartphones, and PCs.
- 8-inch and 6-inch wafers mainly address automotive and industrial power chip applications.
Spot vs. Long-Term Pricing
Semiconductor silicon wafer prices are divided into spot prices and long-term contract prices. Currently, spot prices for 12-inch wafers continue to rise. Analysts expect that spot prices in the fourth quarter of this year may surpass existing long-term contract prices, providing strong support for renegotiation of new long-term contracts in 2027.
Price increases vary by product and customer:
- Epitaxial wafers are seeing relatively moderate increases.
- Polished wafers are experiencing more significant price hikes.
Contract Renegotiations Underway
Some silicon wafer long-term contracts signed during the pandemic period are set to expire between this year and next, requiring renegotiation. Over the past two to three years, costs for raw materials, electricity, and factory construction have risen substantially. As a result, industry consensus expects new pricing with increases of at least double digits.
Broader Market Trends
In late August, reports indicated that the semiconductor silicon wafer market saw its first full-size price increase in three years, covering 6-inch, 8-inch, and 12-inch products, with increases of at least 10%. Earlier this month, silicon wafer manufacturer Hwa Jing raised prices for 6-inch wafers and some 8-inch wafers, and is currently negotiating price adjustments for other 8-inch wafer customers, with new pricing set to take effect next year.
Industry Leader Comments
Hsu Hsiu-li, Chairwoman of GlobalWafers, the world's leading silicon wafer supplier, recently noted that the silicon wafer market has indeed entered a price increase phase. She emphasized that the upward trend is not limited to the short-term spot market; long-term contract prices are also rising in tandem, reflecting a shift in customer attitudes toward future demand and supply visibility.
Currently, long-term contracts account for a relatively low share of total capacity, primarily because a new wave of long-term agreements has only just begun. The proportion of long-term contracts is expected to continue rising, and GlobalWafers will plan capacity expansion accordingly based on long-term contract demand.
Source
财联社Eastern