GlobalWafers Reports Third Quarter 2021 Financial Results

Hsinchu, Taiwan, November 2, 2021 – GlobalWafers board approved its financial statements for the third quarter ended on September 30, 2021 today with the consolidated revenue of NT$15.4 billion, growing for 8 consecutive quarters, gross profit of NT$6 billion, operating profit of NT$4.7 billion, net income attributable to the parent company of NT$3.1 billion, EPS of NT$7.13. Gross profit margin of 39.1% has grown for 3 quarters in a row, operating margin of 30.4%, net profit margin of 20.2%, achieved outstanding results! Quarter over quarter, the third quarter results represented 1% increase in consolidated revenue, 7.6% increase in gross profit, 9.5% increase in operating profit, and NT$1.96 EPS down. Year over year, the third quarter results represented 9.7% increase in consolidated revenue, 15.3% increase in gross profit, 14.4% increase in operating profit, however EPS was down by NT$0.65, mainly due to non-operating losses from valuation of the financial assets, including the mark-to-market loss on Siltronic shares GlobalWafers holds, and the interest expenses from the amortization of the discounted value of ECB which was based on IFRS accounting policy.  Both of the aforementioned losses are non-cash losses.  

About the first three quarters of 2021 consolidated financial results, GlobalWafers cumulative consolidated revenue of NT$45.4 billion hit an all-time high over the same period, up 10.1% YoY, gross profit of NT$16.8 billion, up 8.8% YoY, operating profit of NT$12.9 billion, up 6.3% YoY, net income attributed to parent company of NT$9.7 billion, up 0.9% YoY, EPS of NT$22.40, up NT$0.19 YoY.

Regarding GlobalWafers’ all-cash tender offer for the outstanding ordinary shares of Siltronic AG, we have received clearances from the German Federal Cartel Office, the Austrian Federal Competition Authority, the Korea Fair Trade Commission, the Taiwan Fair Trade Commission, the Competition and Consumer Commission of Singapore, the review of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the Committee on Foreign Investment in the United States. GlobalWafers is continuing to actively cooperate with the remaining regulators with the aim of closing the transaction before the end of 2021.

As for industry outlook, the semiconductor content has continued to grow owing to technology advancement. As communication service providers accelerate the deployment of 5G network infrastructure, 5G coverage is estimated to enlarge sharply. Also, significant fiscal incentives and gradual tightening of fuel economy have spurred the uptake of EV. The features of withstanding high voltage and high temperature make compound semiconductors such as SiC and GaN likely to witness significant growth accredited to widescale adoption in expansive consumer electronics sector including EVs and 5G.  These pillars not only sustain the robust demand for high-quality wafers but also drive further expansion in the semiconductor market. To meet the booming upcycle and increasing needs for chips in all sizes, GlobalWafers dedicates in debottlenecking to maximize its output, utilizing its global shipping channel to prevent disruptive transportation in order to secure supply for its worldwide customers, at the same time enhances its portfolio on niche wafers, and further transforms its complete product offering and solid financial structure into unassailable strength.

While extreme weather worsens, many nations have announced carbon tax on imports of a targeted selection of products to reduce the use of fossil fuels. With extensive global footprint, GWC is well-positioned to supply both globally and locally to mitigate the environmental impact of long-distance shipments as well as macro instability and geopolitical tensions. Furthermore, GlobalWafers aims to achieve 100% renewable energy usage by 2050 so as to realize its corporate responsibility and pursue a sustainable world.