Taipei: Taiwan-based GlobalWafers Co., the world's third-largest silicon wafer supplier, announced that its 12-inch production sites worldwide are fully utilized, even as its net profit for the first quarter decreased from the previous quarter.
According to Focus Taiwan, the global semiconductor industry has experienced strong demand for artificial intelligence applications, leading to increased utilization rates and shipments at GlobalWafers' silicon wafer plants.
In addition to the 12-inch sites, GlobalWafers reported a meaningful increase in the utilization rates of small and mid-diameter wafer production lines. Despite these positive trends, the company posted a first-quarter net profit of NT$1.896 billion (US$60.19 million), down 14 percent from the previous quarter, with earnings per share at NT$3.97.
The company's consolidated sales for the first quarter fell 3.6 percent from the previous quarter to NT$13.985 billion. The gross margin, the difference between revenue and the cost of goods sold, was 20.8 percent, down 4.9 percentage points from the previous quarter. GlobalWafers attributed the gross margin decline to rising operating costs for energy and raw materials, higher logistics expenses, and the ramp-up of new capacity.
The company also noted that the ending of one-time benefits recognized in the fourth quarter of 2025, such as an Italian government subsidy, contributed to the gross margin decline in the first quarter. GlobalWafers expects that, as new capacity completes qualification by clients and ramps up, upfront investments will gradually translate into a more resilient and competitive earnings structure over the medium to long term.
GlobalWafers, known for expanding its network through mergers and acquisitions, operates 18 sites in nine countries, including Taiwan, China, the United States, Japan, Denmark, South Korea, Italy, Malaysia, and Singapore. The company's facility in Japan's Utsunomiya has become profitable, and it is close to completing equipment installation in its expanding Italian factory, which will soon ramp up volume production.
In the United States, GlobalWafers stated that its new Texas fab has been qualified by major clients and that it continues to install equipment there. Additionally, mass production of radio frequency and silicon photonic products began at its Missouri facility in the first quarter.