Hsinchu, Taiwan, February 25, 2025 – GlobalWafers held its board meeting today (February 25, 2025) to approve 2024 financial results. FY2024 consolidated revenue reached NT$62.6 billion with -11.4% YoY; gross profit of NT$19.8 billion, with -25.1% YoY, gross profit margin of 31.6%, with -5.8% YoY; operating income of NT$14.1 billion, with -29.6% YoY, operating income margin of 22.5%, with -5.9% YoY; net profit of NT$9.8 billion, with -50.2% YoY, net profit margin of 15.7%, with -12.3% YoY; EPS of NT$21.06 for FY2024. The consolidated revenues in the fourth quarter, second half and full year of 2024 all reached the third-highest over the same periods in history.
The decline in GlobalWafers’ 2024 net profit and EPS compared with 2023 were mainly impacted by mark-to-market valuation changes on its holdings of Siltronic AG (“Siltronic”) shares and the Exchangeable Units issued based on the holdings. GlobalWafers and its subsidiaries currently hold 13.67% of Siltronic’s total outstanding shares. The investment has been recorded as “Financial Assets at Fair Value through Profit or Loss” on the financial statements, and its profit/loss is booked in accordance with IFRS accounting policy, as fluctuations in Siltronic’s share price resulted in valuation adjustments. In addition, to enhance capital flexibility, GlobalWafers issued EUR 345.2 million of Exchangeable Units exchangeable for its holdings of Siltronic’s shares in Q1 2024. These exchangeable units are required to be measured at fair value under IFRS, with valuation adjustments recognized based on market fluctuations. However, the aforementioned valuation changes are unrelated to cash flow. If excluding the impact of this non-operating valuation adjustment, GlobalWafers’ 2024 pre-tax profit margin would have been 27.2%, with an EPS of NT$28.97, demonstrating its solid core business profitability.
Despite challenges such as the decrease in Siltronic’s stock price, a drop in the average selling price (ASP) of products, a significant increase in Taiwan’s electricity costs, higher depreciation due to capacity expansion, and a high base effect from record-high revenue in 2023, contributing to the decline in revenue and profit in 2024 compared to the previous year, GlobalWafers’ 2024 revenue has continued to show steady sequential growth for three consecutive quarters. Looking ahead to 2025, while the global political and economic landscape remains uncertain, leading many customers to adopt a cautious, wait-and-see approach, GlobalWafers is expected to see a quarter-by-quarter rebound as market conditions stabilize and uncertainties ease.
Today the Board of Directors also approved the cash dividend payment plan for the second half of 2024. The Board of Directors resolved to distribute a cash dividend of NT$6 per share for the second half of 2024, with a total amount of NT$2.87 billion. The ex-dividend record date is July 22, and the cash dividend payment date is August 15. If the cash dividend of NT$5 per share with a total amount of NT$2.39 billion distributed in the first half is included, an annual cash dividend of NT$11 per share with the total annual amount of NT$5.26 billion is distributed throughout 2024. Besides, GlobalWafers’ Annual General Shareholders’ Meeting will be convened at 9 a.m. on May 26 at the Hsinchu Science Park Life Hub, Taiwan.
While global GDP growth is projected to remain steady, it faces challenges stemming from policies on national subsidies, trade tariffs, and fluctuations in exchange and interest rates. The U.S. economy continues to show resilience, characterized by a robust labor market. In the first half of 2025, the semiconductor industry still faces risks related to inventory digestion and tariff uncertainties, yet a more visible recovery is anticipated in the second half as inventory levels decline and market uncertainty gradually eases. Driven by the widespread adoption of affordable AI models, boosting device penetration rates, downstream customers’ capacity expansions gradually coming online, and the evolution of advanced packaging from 2D to 3D heterogeneous integration, wafer usage is expected to increase further, supporting ongoing technological innovation.
Amid evolving tariff tensions and rising transportation costs, demand for local solutions has surged as businesses seek to mitigate geopolitical and trade-related risks. GlobalWafers is well-positioned to capitalize on semiconductor industry trends and market opportunities by prioritizing capital expenditures in advanced process technologies and specialty products. Through strategic investments across key global markets, the company strengthens its local supply capabilities, enabling its operation sites to leverage local supply advantages. Providing one-stop solutions from crystal growth to epitaxy across Asia, the United States, and Europe, GlobalWafers is committed to positioning itself as the optimal risk management partner for customers.
GlobalWafers announced its global expansion plan in 2022 with an investment of NT$100 billion. Most of the brownfield projects have been completed and are now contributing to revenue. Additionally, GlobalWafers’ greenfield expansion project in the United States is progressing smoothly and has entered the sample production and delivery stage. New production capacity will steadily ramp up to meet the increasing demand for semiconductors, strengthening the U.S. domestic wafer manufacturing and local supply. GlobalWafers remains committed to leveraging its advanced manufacturing capabilities to ensure a stable supply chain and provide customers with comprehensive, integrated solutions.