Silicon Wafer Companies Continuing to Invest in Production Facilities

Silicon wafer companies are continuing to invest in production facilities despite deteriorating semiconductor industry conditions.

SK Siltron is planning to invest 2.3 trillion won by 2026. The investment is to expand its facilities in Gumi by 42,716 square meters. More than one trillion won was invested in March, 855 billion won was invested last month, and 400 billion won will be invested next year.

In addition, SK Siltron and IQE recently signed a strategic cooperation agreement to develop GaN wafers together. The wafers are used in manufacturing chips for use in electric vehicles, communication equipment, IT devices, and so on.

Taiwanese company GlobalWafers, the third-largest in the industry, will start U.S. plant construction next month. The plant in Texas is scheduled to open in 2025 based on an investment of US$5 billion. It is expected to produce 1.2 million 12-inch wafers a month.

According to market research firms, the global silicon wafer market is expected to grow from US$5.4 billion to US$13.2 billion from 2021 to 2031. Global trends such as digitalization, the Internet of Things and autonomous driving are predicted to lead the growth of the industry.