Formosa Sumco Technology: Silicon wafer industry hits bottom, optimistic outlook for H2

Central News Agency, Hsinchu, May 28. Semiconductor silicon wafer manufacturer Formosa Sumco Technology (FST) stated today that customer inventory strategies have shifted from destocking to restocking, signaling that the silicon wafer industry has hit bottom. Order visibility has improved significantly, leading to an optimistic outlook for the second half of the year, with expectations that 2027 performance will surpass this year's. During an online investor conference today, Vice President Chiu Shao-hsun reported that Q1 revenue was NT$3.309 billion, a 1.22% increase from the previous quarter, though the company recorded a loss due to depreciation of new facilities and fewer working days. However, driven by memory demand, 12-inch wafer shipments increased compared to Q4 2025, and AI server applications boosted 8-inch wafer shipments. Looking to Q2, Chiu noted that AI applications are driving memory demand, and infrastructure needs are boosting mature process demand, leading to a positive outlook for 12-inch wafers. Additionally, 8-inch wafer spot prices have begun to rise in Q2 due to a recovery in power management and driver IC demand. Chiu stated that 12-inch wafer capacity is fully utilized, and 8-inch wafer demand exceeds capacity. With AI advanced packaging driving further demand, the company expects 2027 performance to be even better than this year.