Silicon Wafer Manufacturers’ Share Price Performance Diverges from Supply Demand Situation

Sumco Benefits from Rebound in Wafer Prices Following Demand-Supply Mismatch

Equity Analyst, LightStream Research

Farha Sabri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

<ul class=""><li>Shortage of silicon wafers to grow on the back of increasing selling prices with very low levels of capacity expansion, and continuously increasing demand from semiconductor manufacturers. Fabrication capacity expansion to grow faster in 300mm segment while demand for 200mm to continue at a more subdued rate.</li><li>Semiconductor manufacturers rush to secure long-term contracts with wafer producers regardless of the continuously increasing average selling prices.</li><li>Silicon wafer industry revenue to grow at a two-year CAGR of 23% until 2019E on the back of steadily increasing selling prices.</li></ul>

Shortage of silicon wafers to grow on the back of increasing selling prices with very low levels of capacity expansion, and continuously increasing demand from semiconductor manufacturers. Fabrication capacity expansion to grow faster in 300mm segment while demand for 200mm to continue at a more subdued rate.Semiconductor manufacturers rush to secure long-term contracts with wafer producers regardless of the continuously increasing average selling prices.Silicon wafer industry revenue to grow at a two-year CAGR of 23% until 2019E on the back of steadily increasing selling prices.

The Fiasco That Is the Silicon Wafer Shortage to Continue Well into 2018 and Beyond