May 28, 2026 /SemiMedia/ — GlobalWafers said it plans to raise silicon wafer prices in the second half of 2026 as improving demand from AI, automotive and industrial markets combines with rising production costs across the semiconductor supply chain.

Chairperson Doris Hsu said during the company’s shareholder meeting on May 25 that market conditions in 2026 have improved significantly compared with last year, when semiconductor demand was heavily polarized between AI-related applications and weaker legacy markets.

According to Hsu, customer confidence and order visibility have gradually improved during the first quarter of 2026, with more customers now willing to place longer-term orders.

She added that demand remains strong for AI-related applications, while automotive and industrial markets have also started recovering. GlobalWafers’ 12-inch wafer production is currently running at full utilization, while utilization rates for smaller wafer sizes have also remained relatively high with visibility extending into the third quarter.

At the same time, Hsu said geopolitical tensions and global conflicts continue driving up operational costs. Energy prices, transportation expenses and petrochemical-related materials costs have all increased across the company’s manufacturing network spanning nine countries. Depreciation expenses tied to ongoing capacity expansion have also continued rising.

As a result, GlobalWafers is actively negotiating with customers regarding planned price increases later this year, arguing that higher external costs can no longer be fully absorbed internally.

The company also said inventory levels remained at a relatively safe level at the end of 2025, although inventory was further increased during the first quarter of 2026 amid ongoing geopolitical uncertainty and signs of demand recovery.

Regarding development of its 12-inch square silicon wafers, Hsu said production capacity has already been established in Taiwan and small-volume customer validation is underway. However, most conventional round-wafer manufacturing equipment cannot be directly reused for square wafer production, requiring additional capital investment in dedicated tools.