GlobalWafers Reports Q2 2022 Results

Hsinchu, Taiwan, August 2, 2022 – GlobalWafers held its board meeting today (August 2, 2022) to approve its financial statements for the second quarter ended on June 30, 2022 with the consolidated revenue reached NT$17.5 billion with 7.6% QoQ and 15.3% YoY; gross profit of NT$7.6 billion with 10% QoQ and 36.9% YoY, gross profit margin of 43.6% with 1% QoQ and 6.9% YoY; operating income of NT$6.4 billion with 8.6% QoQ and 50.3% YoY, operating income margin of 36.5% with 0.4% QoQ and 8.5% YoY; net income of NT$2.7 billion; EPS of NT$6.24. The consolidated revenue for the first half of 2022 reached NT$33.8 billion with 12.8% YoY; gross profit of NT$14.6 billion with 35.4% YoY, gross profit margin of 43.1% with 7.2% YoY; operating income of NT$12.3 billion with 49.7% YoY, operating income margin of 36.3% with 8.9% YoY; net income of NT$4.5 billion; EPS of NT$10.25. For the second quarter and the first half of 2022, GlobalWafers has achieved outstanding operating results with double-digit annual growth in revenue, gross profit and operating income, setting new record highs! Both gross profit margin and operating income margin hit highest records in the history! Additionally, prepayment balance amounted to NTD 36 billion, the all-time high!

GlobalWafers’ 1H 2022 EPS was impacted by mark-to-market loss on the shares of Siltronic AG (“Siltronic”). GlobalWafers and its subsidiaries currently hold 13.67% of Siltronic’s total shares outstanding in aggregate. The investment has been recorded as “Non-Current Financial Assets at Fair Value through Profit or Loss” on the financial statements, and its profit/loss are booked on financial assets in accordance with IFRS accounting policy. As at the end of June 2022, low share price of Siltronic and fluctuation of Euro / New Taiwan Dollar exchange rate resulted in valuation loss at fair value measurement. If excluding the aforementioned non-cash valuation loss and other factors, GlobalWafers’ 1H 2022 EPS would have amounted to NT$26.28, a record high!

Though the pandemic and the uncertainties caused by Russia’s invasion of Ukraine have magnified the slowdown in the consumer demands, US Federal Reserve raises interest rate to curb high inflation is anticipated to have ripple effects throughout the global economy, semiconductor industry remains resilient with network infrastructure and digital transformation since semiconductor is the key enabler to keep the society functioning and is essential to facilitate daily life. In addition, technology advancements in end applications like automotive, industrial and cloud serve as structural supports for long-term momentum. Growing Si content to satisfy the growing functionalities have spurred the shift toward larger diameter wafers for lower cost per chip. By adopting brown- and greenfield expansions, GlobalWafers targets large-size wafers and compound semiconductors for advanced processes, which will play a larger role in the product spectrum thus further optimizing its product mix, empowering GlobalWafers to capture timely the new business opportunities from innovative end applications.

GlobalWafers is providing an update on the CHIPS Act, which is the USA’s semiconductor subsidy legislation.  On Wednesday, July 28th, the bill passed both houses of Congress.  President Biden is scheduled to sign it the following week.  The bill includes US$52 billion in grant money and US$24 billion in 4-year, 25% investment tax credits.  GlobalWafers is actively participating in this subsidy and is expecting to receive funding from this program to go toward the construction and outfitting of its recently announced start-of-the-art 300-millimeter silicon wafer factory to be located in Sherman, Texas, which is in close proximity to its wholly-owned subsidiary, GlobiTech Inc., an LE200 Epitaxial wafer facility.