Hsinchu, Taiwan, May 5, 2026 – GlobalWafers held its board meeting today (May 5, 2026) to approve its financial statements for the first quarter ended on March 31, 2026 with the consolidated revenue reaching NT$13.98 billion and a YoY decrease of 10.3%; gross profit of NT$2.91 billion, gross profit margin of 20.8%; operating income of NT$1.48 billion, operating income margin of 10.5%; net income of NT$1.9 billion, net income margin of 13.6%; EPS of NT$3.97. Q126 gross margin declined QoQ, mainly reflecting the fade-out of one-time benefits recognized in the fourth quarter of 2025 (including the one-time contribution from the Italian government subsidy upon meeting accounting recognition criteria), as well as the impact of higher operating costs driven by energy, raw material, and logistics expenses, together with the ramp-up of new capacity. These pressures represent a necessary and manageable part of the expansion process. As new capacity completes qualification and ramps progressively, upfront investments are expected to gradually translate into a more resilient and competitive earnings structure over the medium to long term.
Benefiting from growing demand driven by AI and high-performance computing, the global semiconductor market has shown a broad-based recovery over recent quarters, supporting a gradual improvement in upstream wafer shipments, although the pace of recovery remains uneven across end-market applications. GlobalWafers’ first-quarter operations were temporarily affected by seasonality and extreme weather conditions. As these disruptions have subsided, shipments across sites have returned to normal. While profitability remains under short-term pressure due to capacity ramp-up, as global expansion projects gradually come onstream and capital expenditures begin to converge, the Company’s operational focus has shifted toward accelerating customer qualifications and enhancing capacity utilization. The Company is also seeing multiple positive signals from customers, indicating demand improvement has become more pronounced. In terms of utilization, excluding newly added lines still in the ramp-up stage, 12-inch utilization across the Company’s global sites remained fully loaded. Utilization of small- and mid-diameter wafers also improved meaningfully, with 8-inch demand remaining strong, supported by recovering power management and analog applications, and gradually extending to 6-inch wafers, driving continued improvement in overall capacity utilization and shipment momentum.
GlobalWafers continues advancing its global expansion and localization strategy, with major sites accelerating sampling and customer qualifications while beginning to realize results. In Japan, the expanded Utsunomiya facility has quickly returned to profitability, contributing to margin improvement and positive cash flow. In Italy, installation of expansion equipment is nearing completion, the new production line has obtained IATF 16949 certification, demonstrating that its processes and quality management meet the stringent requirements of the automotive supply chain, which will help accelerate customer qualification and volume production ramp-up. In the United States, the new Texas fab continues equipment installation and line setup, and has secured qualifications from leading customers to support capacity ramp-up. In Missouri, 12-inch SOI newly added equipment has gradually completed production qualification, with selected RF and silicon photonics products entering mass production in the first quarter of 2026.
The Company has also achieved encouraging progress in government incentives. In the United States, subsidiaries led by GlobalWafers America, in addition to previously secured CHIPS Act support, have recently obtained benefits under the Advanced Manufacturing Investment Credit (AMIC) and other government incentive programs, with approximately US$317.8 million received as of the first quarter of this year. These incentives carry meaningful financial significance for the Company’s long-term U.S. investment and capital allocation. In Italy, the first tranche of government subsidy funding has been approved, with nearly €30 million received in March this year, while subsequent subsidy applications remain on track according to schedule, supporting the Company’s long-term manufacturing footprint and operational stability. Meanwhile, the Company continues optimizing its balance sheet, with debt levels declining from prior peaks and bank borrowings further reduced. As market recovery supports future revenue and cash flow growth, GlobalWafers expects to further strengthen its financial position.
As advanced packaging technologies and high-efficiency, high-frequency applications drive demand for new materials, GlobalWafers continues expanding its portfolio of high-value products. In product mix, supported by strong customer demand and solid order visibility, SOI production line has delivered strong performance and, despite still being in the early stage of expansion, has already achieved positive gross margin, becoming one of the early highlights among the Group’s strategic initiatives to demonstrate tangible results. In compound semiconductors, 12-inch SiC has completed development and entered qualification with key customers. During 2026, the focus will be on validation and limited-volume shipments, with future volume ramping to follow customer qualification progress. Applications are expected to extend into thermal management, advanced packaging, and selected optical fields. Meanwhile, GaN remains focused on high-efficiency power applications, including data centers, charging infrastructure, and smart devices. Capacity remains fully utilized, with approximately 30% expansion completed and an additional 20% capacity expansion underway to support future growth momentum.
In sustainability governance, the results of the 12th (2025) Corporate Governance Evaluation were recently announced, with GlobalWafers has once again been awarded among the top 5% of all Taipei Exchange-listed companies for the eighth consecutive year, and has also been recognized among the top 10% of electronics companies with a market capitalization of NT$10 billion or above. This not only demonstrates the Company’s consistently strong governance performance among industry peers, but also highlights GlobalWafers’ long-term commitment to advancing corporate governance and sustainable development. Guided by its principle of “Responsible Growth,” GlobalWafers continues to respond to macroeconomic and industry changes through operational resilience, while further strengthening its governance framework and steadily advancing toward long-term sustainable growth.