Hsinchu, Taiwan, August 1, 2023 – GlobalWafers held its board meeting today (August 1, 2023) to approve its financial statements for the second quarter ended on June 30, 2023 with the consolidated revenue reached NT$17.9 billion with -3.9% QoQ and 2% YoY; gross profit of NT$6.7 billion with -10.7% QoQ and -11.8% YoY, gross profit margin of 37.7% with -2.9% QoQ and -5.9% YoY; operating income of NT$5.2 billion with -14.6% QoQ and -18.6% YoY, operating income margin of 29.1% with -3.7% QoQ and -7.4% YoY; net profit of NT$4.8 billion with -4.2% QoQ and 76.3% YoY, net profit margin of 26.8% with -0.1% QoQ and 11.3% YoY; EPS of NT$11. The consolidated revenue for the first half of 2023 reached NT$36.5 billion with 7.9% YoY; gross profit of NT$14.3 billion with -2% YoY, gross profit margin of 39.2% with -3.9% YoY; operating income of NT$11.3 billion with -8% YoY, operating income margin of 31% with -5.3% YoY; net profit of NT$9.8 billion with 119.4% YoY, net profit margin of 26.8% with 13.6% YoY; EPS of NT$22.49. Both 2023Q2 and 20231H revenue hit record high over the same period, and GlobalWafers has achieved six consecutive semi-annual advances of consolidated revenue since 20201H! For 20231H, net profit margin and EPS achieved the second highest ever. Additionally, with prospects of enduring demand for semiconductors, GlobalWafers, as a trusted business partner, has continued signing Long Term Agreements (LTAs) and receiving new prepayments from customers in the first half of 2023. As of the end of June, prepayment balance amounted to NT$38.3 billion, setting the third highest record!
Due to easing inflation and stronger real incomes, the global GDP growth is forecasted to rise in 2023, while high inflation pressures and energy prices still pose challenges to the upturn. In 2023, the global semiconductor industry, including memory sector, is facing a decline due to chip oversupply, yet the revenue decline in material market was slightly mitigated with fabs ramping up leading-edge logic and automotive/power device production. Driven by technological innovations giving long-term momentum to the semiconductor industry, the material market is expected to resume growth with anticipated rebound of the economy in 2024. Key sectors such as automotive, industrial electronics, and generative AI continue to be pivotal drivers. EVs, ADAS, and AVs consistently propel automotive semiconductor. Besides, infotainment systems with features like navigation, Wi-Fi, smartphone integration, voice commands, and audio/video services also increase semiconductor contents in modern vehicles. The boom in generative AI boosts the demand for AI hardware devices such as AI model training infrastructure, AI servers, etc. In the meantime, AI servers are in high demand across various sectors, including cloud services, e-commerce, intelligent manufacturing, financial insurance, healthcare, and ADAS, simultaneously increasing the semiconductor unit contents. On the other hand, the compound semiconductor industry is experiencing fast growth led by SiC and GaN. The automotive industry, particularly the EV sector, and the growing renewable capacity, accelerate the penetration of compound semiconductors. GlobalWafers continues to provide wafers of excellent quality and comprehensive specs, which meet the diverse needs of the market, poised to seize opportunities in the future economic recovery.
GlobalWafers continues to be included as a constituent company in the “TIP Customized TPEx ESG 30 Index” and “FTSE4Good Index Series”, demonstrating its strong ESG practices measured against globally recognized standards. In response to the government’s policies on green power development, GlobalWafers looks forward to making a positive impact on Taiwan’s energy landscape and up to June 30, 2023, the total installation capacities of GlobalWafers’ solar power plants have amounted to 41MW. While Taiwan’s Ministry of Economic Affairs has set a goal of 20% power generation sourced from renewable energy by 2025, to effectively address the intermittency of renewable energy such as photovoltaics and offshore wind power requires energy storage systems to play a role in power regulation in the grid. In addition to building a 3,473KW solar energy system in Yilan, GlobalWafers has also invested in constructing a 1,500KW energy storage system at this site, which will be connected to the power grid by 2023Q3 for auxiliary services, contributing to a more stable and resilient national power grid. Through the actual performance and experience in developing solar energy systems and energy storage systems, GlobalWafers consolidates its renewable energy development of integrating photovoltaic and energy storage. Moreover, GlobalWafers is committed itself to be part of Taiwan’s journey towards a greener and more sustainable future.