Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (7840)	11/12/2019 10:08:12 AM
From: Kirk ©	Respond to of 26638

Is it a slowdown or do customers want to buy the larger 12" wafers? ..... something to keep an eye on. Silicon wafer makers see chipmakers reluctant to strike LTA contracts Nuying Huang, Taipei; Jessie Shen, DIGITIMES Tuesday 12 November 2019 Silicon wafer manufacturers have seen their clients become more reluctant to sign long-term agreements (LTA) particularly those for 8-inch and smaller size products, according to industry sources. With many of their LTA contracts set to expire in 2020, silicon wafer makers are negotiating with the clients about renewing the contracts. However, many of their LTA customers intend to reduce the sizes of their promised volumes or skip the supply of 8-inch and smaller size wafers, the sources indicated. Silicon wafer producers find it more difficult to strike LTA contracts for the supply of 8- and 6-inch, and smaller size wafers given the still sufficient supplies from the spot market, the sources noted. Nevertheless, transaction volumes are currently low in the spot market, the sources continued. Meanwhile, spot prices for silicon wafers are under downward pressure if transaction volumes remain slow, the sources said. Formosa Sumco Technology (FST), which relies more on the spot market, saw its cumulative 2019 revenues through October decline 27.8% from a year earlier to nearly NT$9.8 billion (US$321.9 million). GlobalWafers, which fulfills the majority of its orders based on LTA contracts, expressed previously caution about its sales outlook for the rest of this year as some major clients are cautious about placing new orders. digitimes.com