Top Silicon Wafer Supplier Is Booked Up Through 2026

pcmag.com:

Chip demand is so intense that one supplier has sold out of 300mm silicon wafers through 2026. As Bloomberg first reported, Japanese company Sumco has entered into long-term agreements to cover its entire manufacturing capacity for 300mm wafers for the next five years.

“The strong demand for 300mm wafers from both logic and memory customers continues to outstrip capacity,” Sumco said in an earnings call, adding that it expects wafer supplies to remain tight, despite a new factory going online. 

Although Sumco wants to build more capacity, the problem is a shortage of chip manufacturing equipment. "All of these equipment makers are already fully booked up," Sumco CEO Mayuki Hashimoto said during the call. "So lead times are getting longer and it's increasingly difficult to source equipment."

"This is why despite our investments to increase capacity, we will only start to see gradual increases in output starting in the second half of 2023, and it will take until 2025 until we are fully wrapped up," he added.

In the meantime, Hashimoto noted “it’s relatively easy to raise prices” on wafer supplies, citing the ongoing demand. As a result, the company is increasing wafer pricing this year by 10%. The price will also continue to rise over the next few years before hitting a peak in 2024.

In the earnings call, Sumo also pointed out customers have been trying to order more wafer supplies, but the company had to refuse, citing a delay in delivering “production equipment” to the manufacturing facilities. “Our customers have been pressing us to increase production, but unfortunately we do not have room to increase production volume,” Hashimoto said. “I believe our peers are in the same boat.”

The statements signal the ongoing chip