GlobalWafers held its board meeting today (May 6, 2025) to approve its financial statements for the first quarter ended on March 31, 2025 with the consolidated revenue reaching NT$15.59 billion and a YoY increase of 3.4%; gross profit of NT$4.11 billion with a YoY decrease of 20.4%, gross profit margin of 26.4% with a YoY decrease of 7.9%; operating income of NT$2.59 billion with a YoY decrease of 34.7%, operating income margin of 16.6% with a YoY decrease of 9.7%; net income of NT$1.46 billion with a YoY decrease of 58.8%, net income margin of 9.3% with a YoY decrease of 14.1%; EPS of NT$3.05. The quarterly consolidated revenue achieved the third highest record in history!
The decline in GlobalWafers’ Q1 2025 profitability compared with 2024 was mainly influenced by its global expansion and the impact of mark-to-market valuation changes on its holdings of Siltronic AG (“Siltronic”) shares. GlobalWafers and its subsidiaries currently hold 13.67% of Siltronic’s total outstanding shares. Due to a decline in Siltronic’s share price, GlobalWafers recognized a mark-to-market loss on this investment. Meanwhile, although GlobalWafers’ global expansion strategy has temporarily weighed on short-term financial results, it is expected to yield significant long-term benefits. In response to a volatile macroeconomic environment, the Company has strategically expanded in six countries, transforming from an Asia-centric production model into a highly globalized manufacturing network. This enables GlobalWafers to provide customers with localized, one-stop solutions from crystal growth to epitaxy across Asia, the U.S., and Europe. The Company’s highly localized and regionally diversified supply chain enhances its agility in addressing tariff changes and trade tensions, while also improving manufacturing flexibility and reinforcing long-term customer partnerships across major semiconductor markets. Furthermore, the expansion significantly increases the share of advanced-node products in its portfolio, aligning with industry trends and market demand, and laying the foundation for sustainable growth. Excluding the impact of non-operating valuation adjustments related to Siltronic and the temporary effects of global expansion, GlobalWafers’ Q1 2025 gross margin would have been 32.1%, net profit margin 21.9%, and EPS NT$6.94, underscoring the Company’s strong core operating performance. Amid heightened global macroeconomic uncertainty and volatile policy shifts, the semiconductor industry is facing dual challenges of rising production costs and weakening end-market demand. Nevertheless, major customers have gradually released optimistic signals indicating upcoming growth in the industry, helping to restore market confidence. Geopolitical tensions and tariff concerns have also prompted customers to re-evaluate their supply chain strategies, leading to increased localization and the establishment of buffer inventories. Leveraging its manufacturing footprint across three continents, GlobalWafers has been able to swiftly respond to customer needs, capturing urgent and reallocated orders while ensuring a stable supply of all wafer sizes to help customers navigate a rapidly changing market environment. GlobalWafers continues to strengthen risk management and operational resilience, advancing its long-term competitiveness through global presence and regional integration strategies. With 18 operating sites across 9 countries, the Company is committed to increasing local sourcing at the production end, while working closely with customers to obtain multi-site certifications across regions at the supply end. This diversified supply network enables stable deliveries and helps mitigate geopolitical and tariff-related risks. At the same time, GlobalWafers is actively cultivating global talent and maintaining a sound financial structure to support long-term business growth. The Company promotes capacity expansion through strategies such as job creation in the U.S., cross-site workforce support, and ample cash reserves, ensuring a stable foundation for future development.
GlobalWafers’ capacity expansion is progressing on schedule and has delivered encouraging milestones. Sample deliveries have commenced from the newly built GlobalWafers America (Texas), as well as from the newly expanded production lines at MEMC LLC (Missouri) and MEMC Electronic Materials S.p.A. (Italy). GlobalWafers remains committed to its green pledge through sustainable manufacturing processes, the use of renewable energy, and responsible operational strategies. Its global operating sites are positioned to supply customers in proximity, minimizing transportation distances and thereby reducing product carbon footprints and potential carbon tariff exposure. Both the U.S. expansion projects and the newly constructed 12” production line in Italy are expected to use 100% renewable electricity during the capacity ramp-up stage. This not only enables GlobalWafers to provide low-carbon wafers to customers, but also marks a significant step forward in the Group’s efforts to achieve its RE100 goals. The new Texas fab is the first advanced 12” integrated wafer fab in the United States, while the Missouri facility hosts the only 12” advanced SOI wafer production line in the country. Both sites are located in key semiconductor clusters, reinforcing the resilience of domestic manufacturing in the U.S. and significantly expanding GlobalWafers’ presence in the U.S. market. With a strong global footprint, customer-proximate supply chain design, focus on local sourcing, and commitment to advancing green manufacturing, GlobalWafers is fully prepared to move forward amid an increasingly complex macroeconomic and policy environment.
The eleventh (2024) Corporate Governance Evaluation results have been announced. GlobalWafers has once again been awarded among the top 5% of all Taipei Exchange-listed companies for the seventh consecutive year, fully demonstrating its outstanding achievements in strengthening corporate governance frameworks and advancing sustainability practices. Guided by the principle of “Responsible Growth,” GlobalWafers will continue to refine its corporate governance mechanisms, enhance sustainability performance across various domains, and strengthen competitiveness, steadily moving toward sustainable operations.