12-inch Wafer Capacity Near Full Load as GlobalWafers Signs 10-Year Deal

GlobalWafers reports near-full capacity across all wafer sizes due to AI and HBM demand. A 10-year contract with Micron signals shifting long-term agreement models amid rising spot prices.

Woofun AI data shows that GlobalWafers reported its 12-inch, 8-inch, and 6-inch wafer production lines are approaching full capacity during the Q2 earnings call. Advanced 12-inch products face supply constraints driven by surging demand for AI chips, HBM, and advanced packaging. Shin-Etsu Chemical recorded double-digit growth in 12-inch shipments both year-on-year and quarter-on-quarter in Q2, while Sungrow indicated that customer inventory adjustments are nearing completion. Although SK Siltron is gradually releasing capacity from new lines, it struggles to match order growth rates.

GlobalWafers signed a 10-year long-term agreement including advance payments with Micron last month, reflecting shifts in contract structures. Non-LTA market prices have begun rising and are expected to increase further in the second half of the year. GlobalWafers is negotiating price adjustment mechanisms into new contracts, while Nexchip emphasized the need for broad and meaningful price increases to support reinvestment. Industry insiders project wafer demand will double in the second half of 2027 as new factories from Samsung, SK Hynix, and Micron come online, potentially intensifying supply shortages.