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Semiconductor expansion wave pushes up demand for silicon wafers, major manufacturers plan to raise prices by 30%

Update time : 2022-06-10 11:06:17

Japan's semiconductor material makers are raising prices due to strong demand and tightening supply, Nikkei Asia reported. Among them, semiconductor wafer major SUNGO (SUMCO) plans to raise prices for long-term contracts with wafer makers by about 30 percent between 2022 and 2024.

Mayuki Hashimoto, chairman and CEO of SUMCO, said, "We can't meet the demand." The company has also decided to invest a total of 350 billion yen ($2.6 billion) to build new plants in Japan and Taiwan to increase production capacity.
Currently, the world's top four wafer manufacturers are: Japan's Shin-Etsu (Shin-Etsu, with a market share of 33%), Seiko (SUMCO), Taiwan's Global Crystal, and Germany's Siltronic (Siltronic). Among them, SUMCO said in February this year, its capacity to 2026 has been sold out, the next five years 300 mm silicon wafer capacity are booked full, currently not accepting long-term orders for 150 mm and 200 mm silicon wafers; global crystal also indicated that the company's 2022 to 2024 capacity has been sold out.
Meanwhile, spot prices for semiconductor silicon wafers have been rising since the end of 2021. Goldman Sachs analyst Atsushi Ikeda said that semiconductor manufacturers "prioritize securing volume over price, especially for silicon wafers," which has led to continued price increases.
According to SEMI data, the end of 2021, a total of 19 high-capacity fabs worldwide into the construction period, another ten fabs will start construction in 2022, silicon wafer usage will also rise sharply.

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