Global Silicon Semiconductor, a silicon wafer fab, held its regular shareholders meeting on the 23rd. Due to the Sino-US trade war and the terminal demand for the new coronary pneumonia epidemic, Global Crystal is cautious and conservative in its operating outlook for the second half of the year and is expected to maintain the same level as the first half of the year.
Global Crystal Chairman Xu Xiulan said that the supply of 12-inch wafers is in short supply, and the Sino-German branch of the company has begun to expand production. Although the price of the product was originally optimistic, it is expected to rise, but there are many uncertainties in the market. The product is currently expected to remain flat.
Global wafer shipments of silicon wafers remained stable in the second quarter, and consolidated revenue in May increased by 0.6% to NT$4.333 billion, a decrease of 11.8% from the same period last year. The cumulative consolidated revenue for the first five months reached 22.154 billion yuan New Taiwan dollar decreased by 12.0% compared with the same period last year. Global Crystal expects that demand in the second quarter will be the same as the first quarter, and the overall operation in the second quarter will be better than the first quarter.
Regarding the outlook for the future of silicon wafers, Xu Xiulan said that the market demand in June is healthy, and the performance is expected to be better than the NTD 4.3 billion in April and May. However, the automotive market still has uncertainties. Reached the originally expected goal of climbing quarter by quarter. Affected by the Sino-US trade war and the new coronary pneumonia epidemic, the market outlook is full of uncertainties. The outlook for the second half of the year is cautious and conservative, but it is expected to remain at the same level as the first half of the year.
In addition, the price of silicon wafers stopped falling in the first quarter, and it has been flat in the second quarter. For the outlook of product prices in the second half of the year, Xu Xiulan said that the original optimistic product prices are expected to rise, but there are many uncertainties in the market. The product will remain flat.
Regarding compound semiconductors, Global Crystal's SiC and GaN wafers have been produced in small quantities. This year, GaN investment will be increased, and production will be expanded in response to customer needs. The two sides are discussing details of cooperation. In addition, Global Crystal is actively deploying SiC wafers. It signed a contract with GTAT in August last year to ensure the long-term stable supply of silicon carbide wafers that meets market demand. Currently, 4-inch products have been produced in small quantities and 6-inch Under certification. Xu Xiulan said that with the growth of applications such as 5G and electric vehicles, Global Semiconductor has produced a small amount of compound semiconductor products this year. It is expected to continue to grow next year and will be a high-growth product line in the next few years.