Semiconductor silicon wafer maker GlobalWafers expects to complete the merger with Germany-based fellow maker Siltronic in second-half 2021, according to company chairperson and CEO Doris Hsu.

However, completion of the transaction hinges on regulatory approval in the countries concerned, Hsu noted. GlobalWafers has so far passed antitrust clearance in Germany and Austria and obtained approval from US CFIUS (Committee on Foreign Investment in the United States), Hsu indicated.

GlobalWafers has been fully utilizing capacity for 6-, 8- and 12-inch wafers since 2020 and the full utilization will remain in first-half 2021, Hsu said, adding there will be global shortage of wafers, especially 12-inch ones.

Global demand for ICs and semiconductor components is expected to keep growing, driven by 5G smartphone replacements, pandemic-induced demand for remote working and learning, and fast deveopment of electric vehicles (EV) and autonomous driving, Hsu indicated, adding GlobalWafers is optimistic about its long-term outlook.

As Japan-based Shin-Etsu Chemical will hike silicon wafer quotes by 10-20% in April 2021, GlobalWafers is expected to raise its by at least 10%, industry sources noted.

GlobalWafers' new plant in South Korea began production of 12-inch polished wafers in fourth-quarter 2020, and the plant has a monthly capacity for 176,000 wafers, of which 70% has been utilized 70%, said the sources.

GlobalWafers posted consolidated revenues of NT$55.359 billion (US$1.95 billion), gross margin of 37.15%, operating profit of NT$15.287 billion and net profit of NT$13.104 billion 2020, with its net profit margin of 23.61% hitting an annual record.

GlobalWafers has reported consolidated revenues of NT$4.553 billion for February, increasing 0.09% sequentially and 6.41% on year, and those of NT$9.102 billion for January-February grew 7.49% on year.