TAIPEI (Taiwan News) — GlobalWafers Chair Hsu Hsiu-lan (徐秀蘭) said Wednesday the global silicon wafer market is oversupplied by up to 10%, with sluggish demand for mature semiconductor processes dragging on utilization rates.

Hsu explained that utilization rates for 12-inch wafers remain above 95%, while 8-inch and 6-inch wafers are below 80% and 70%, per CNA. She said the imbalance reflects slower demand for legacy chips even as advanced manufacturing stays resilient.

The company reported NT$14.49 billion (US$468.5 million) in Q3 revenue, down 9.5% from the previous quarter, partly due to early order pull-ins in Q2 and currency headwinds. Rising energy costs and expenses tied to new fabs in the US, Italy, and Japan also squeezed profitability.

Gross margins fell to 18.4%, down 7.4 percentage points from Q2, while operating profit dropped nearly 50% to NT$1.23 billion. Non-operating income helped lift net profit after tax by 17.1% to NT$1.97 billion, translating to earnings per share of NT$4.12.

For the first nine months of this year, revenue totaled NT$46.1 billion while net profit after tax fell 45.5% to NT$5.11 billion. Gross margin over the same period declined to 23.6%, down 8.6 points year-on-year.

In the compound wafer segment, Hsu said utilization rates for 6-inch and 8-inch silicon carbide wafers remain below 50% but are showing early recovery signs, with stronger demand expected next year. Gallium nitride wafers, however, face a tight supply, prompting expansion.

Hsu added that customer inventories have largely normalized, and advance payments fell 6.5% from the previous quarter to NT$26.9 billion. She said the US market will play a key role in GlobalWafers’ growth strategy.