Global Wafers: 2023 Revenue Up 0.5%, 37.4% Gross Margin

Global Wafers released its comprehensive financial report for the fiscal year 2023 on February 27. The company reported a consolidated annual revenue of NT$70.65 billion, reflecting a modest 0.5% year-on-year increase. Operating gross profit amounted to NT$26.44 billion, marking a 12.9% decline from the previous year, with an operating gross profit margin of 37.4%. Net profit for the year reached NT$20.06 billion, indicating a 19.7% decrease, with a net profit margin of 28.4%, down by 7.1%.

Post-tax, Global Wafers recorded a net income of NT$19.77 billion, showcasing a noteworthy 28.6% annual increase. Earnings per share reached a record high at NT$45.41. The company attributes its success in 2023 to a substantial portion of long-term contracts and sustained high utilization rates in the production of FZ wafers and compound semiconductor wafers. This resilience persisted despite the prevailing economic deceleration and heightened inventory pressure in the semiconductor industry.

In anticipation of the year 2024, Global Wafers envisions a potential market recovery. Factors such as terminal market destocking, the integration of AI functionalities in PCs, tablets, and smartphones, and the demand for semiconductor components supporting the AI ecosystem are expected to drive a new wave of device upgrades. Furthermore, emerging applications such as 5G, electric vehicles, smart cabins, and autonomous driving are poised to provide additional momentum to the semiconductor market.

While a gradual market recovery is anticipated in 2024, the company acknowledges uncertainties such as unknowns in terminal demand recovery, broader economic uncertainties, and geopolitical factors like war and interest rate fluctuations. Positioned upstream in the semiconductor supply chain, Global Wafers anticipates its recovery to lag 1-2 quarters behind the downstream, with a more favorable performance projected in the latter half of 2024. The company is strategically preparing for accelerated chip production towards advanced processes through its expansion plans.