In the micro-message message, Global Crystal Chairman Xu Xiulan pointed out today that the prices of 6, 8 and 12-inch silicon wafers this year will both increase compared to last year, and that the increase will be better than in the fourth quarter of last year. The expected price will continue to rise next year. At present, global crystal order visibility has reached 2020, and production capacity has been booked more than half. It also represents the overall operating performance of 2019.
Xu Xiulan also emphasized that the global wafer technology, cost, and management capabilities are all advantages. It is worth mentioning that Global Wafer has up to 16 factories worldwide, only two of them are covered by themselves, and the other 14 plants are Mergers and acquisitions are obtained, and all are purchased at discounted prices. Therefore, the cost advantage is more competitive than the newcomers.
For Xupu Lan’s New Deal on Tax Cuts, Xu Xiulan said that this is not a bullish forecast. Global Crystals has two plants in the United States. In addition to the reduction of corporate tax rates to 21%, capital expenditures can be depreciated faster, and for profitable companies It is advantageous.
As for the depreciation of the U.S. dollar, last year did have a heavier exchange loss pressure on Global. Last year, the exchange loss was approximately NT$230 million, and 80% of Universal Crystal's orders were denominated in U.S. dollars. As for the first quarter, there were also some foreign exchange losses. The first quarter of the month says to investors.
Xu Xiulan said that from the perspective of demand, there is absolutely no problem. Because of the development of technology trends, the demand for semiconductors exceeds imagination, including smart homes, Internet of things, automotive electronics, electric vehicles, etc., just like consumers use it. After the mobile payment, it will not go back. Such demand will only increase, and the trend will gradually take shape. The silicon wafer industry is not a demand issue at present. It is that the supply side may have new suppliers and influence the industry. , However, due to the high barriers to entry, and the time required for input recovery, it is difficult to determine when production capacity can be relieved. In addition, due to the tight demand for silicon wafers, the company also carefully observed whether customers repeat orders. Too many such situations, orders and industry supply and demand are healthy.
On the whole, Xu Xiulan believes that the global supply of semiconductor silicon wafers does not need to be substantially expanded. In terms of the global wafers themselves, they will achieve the best use of space in existing plants, and make good use of space to increase the bottleneck process. Currently, it will not consider investing in a new plant in China. There are no plans to expand production in the five plant areas in Japan. The main consideration for the earthquake in Japan is to eliminate the risk of excessive concentration of production.