One of the leading providers of silicon wafers for the production of microchips is Sumco Corp. reported record profits and announced that it had completely sold out orders for the production of semiconductor “blanks” by the end of 2026. This indirectly indicates that the shortage of components will continue to be felt in the coming years.
The Japanese company Sumco Corp. is one of the few silicon “semi-finished products” that chip manufacturers use for their products. We’re talking about the lines from which 300 mm plates are coming off, they have orders for the next five years and new ones are no longer being accepted. The company announced this during its conference call on Wednesday.
The manufacturer is not taking long-term orders for 150mm and 200mm wafers, but demand in this segment is likely to exceed supply for the foreseeable future. In 2021, the price of wafers is up 10% year over year, and Sumco expects it to keep rising until at least 2024. There is a noticeable imbalance between supply and demand for all of the company’s products.
Amid news of long-term orders, Sumco shares rose 11% in trading in Tokyo, its biggest intraday price jump since March 2020. The company says it won’t be able to expand production this year despite strong demand , which is why the management is doing everything to optimize the operation of existing lines.
Yesterday’s Sumco earnings report revealed that its revenue and earnings are higher than analysts had predicted. In addition, the company expects a further increase in turnover and sales, which is favored by the current market situation.
Taiwan’s GlobalWafers recently failed to get regulatory approval to buy Germany’s Siltronic AG, also a wafer maker, in a move it believes could strengthen the chip supply chain.