GlobalWafers recently said at the media meeting that in order to meet the customer's demand for 12-inch wafers, the company will expand a wafer production line at MEMC Korea Co., an existing fab in Cheonan, South Korea, with a target monthly production capacity of 150,000. The investment amount is about 438 million US dollars.
GlobalWafers pointed out that because most customers have low wafer inventory, many customers continue to sign a new LTA (Long Term Agreement) with the company or renew their LTA contract to ensure a long-term stable supply of silicon wafer materials from 2021 to 2023 and beyond. The new production line is augmented based on the customer's confirmed long-term orders, and capital expenditures are almost entirely from the customer's advance payment. The new contract price has also been determined, higher than the fourth quarter of this year's pricing. After mass production in 2020, more than five years of production capacity will be fully provided to customers who have signed LTA with the company.
Regarding the outlook for the future, GlobalWafers said that the company will continue to invest in the advanced process development of silicon wafers, keep pace with customers, and commit to the innovative development of new products in the semiconductor terminal market.
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