In the Semiconductor Supercycle... Q1 Silicon Wafer Shipments Reach All-Time High

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Amid a global semiconductor shortage, the shipment volume of silicon wafers, the raw material for semiconductors, reached a record high in the first quarter of this year.

According to the Semiconductor Equipment and Materials International (SEMI) on the 4th, the shipment area of silicon wafers in the first quarter of this year was recorded at 3.337 billion square inches. This represents a 4% increase from the fourth quarter of last year and a 14% increase compared to the same period last year. It also surpassed the previous record set in the third quarter of 2018.

Wafers are the raw materials used to make semiconductor integrated circuits. They are thin, disc-shaped slices cut from silicon pillars, and through a special process, electronic circuits are etched onto the wafer, which is then cut into individual semiconductor chips. SEMI analyzed that "logic semiconductors and foundries are the biggest factors driving the increase in silicon wafer shipments, and the recovery of the memory market also led to the shipment growth in the first quarter."

Data provided by the Semiconductor Equipment and Materials International (SEMI)

The expansion of semiconductor demand is also confirmed by other indicators. The Semiconductor Industry Association (SIA) of the United States recently announced that the global semiconductor sales in the first quarter reached $123.1 billion (approximately 137.5 trillion KRW), a 17.8% increase compared to the same period last year. This surpassed the previous supercycle (boom period) in the third quarter of 2018 and is the largest ever recorded since SIA began publishing statistics, effectively marking an all-time high.

The upward trend in semiconductor prices is also clearly evident. According to Taiwanese market research firm TrendForce, the fixed transaction price of DDR4 8Gb PC DRAM last month averaged $3.80, a 26.67% increase from the previous month. The price increase is the highest since January 2017, a long-term semiconductor boom period. The price rose by about $1 from $2.85 at the end of last year in just four months. Considering that during the super boom period from April to September 2018, the price of this product exceeded $8, there is a possibility that sales will further increase due to the price rise.

As semiconductor demand grows significantly, concerns have also been raised about a potential shortage of wafer supply. The Japanese Nihon Keizai Shimbun recently reported that Japanese wafer suppliers are taking a cautious approach to expanding capital investment to meet the surge in demand, which could lead to wafer supply shortages and price increases. The silicon wafer market is dominated by Japanese companies such as Shin-Etsu and Sumco, which hold about a 55% market share.

This content was produced with the assistance of AI translation services.