The market structure has changed, and the price of silicon wafers may rise

Recently, the silicon wafer giant Global Wafer announced that it plans to acquire Siltronic AG, also a silicon wafer manufacturer, at a price of 125 euros per share. Global Wafer said that the negotiation has entered the final stage and is expected to announce a deal in the second week (next week) of December.
 
Global Wafer pointed out that the combination of the company and Siltronic will create an industry leader and provide a complete and technologically leading product line for all semiconductor customers worldwide. The combined business entity will be more able to complement and effectively invest and expand production capacity.
 
TrendForce analysts at TrendForce said that, through this merger, Global Wafer can increase production capacity and increase market share on the one hand, and on the other hand, it can increase its voice in future bargaining.
 
According to data, Universal Wafer is the largest supplier of professional wafer materials from 3 inches to 12 inches in the semiconductor industry in Taiwan, China. It has a complete wafer production line and its products are widely used in power management components, automotive power components, MEMS components and other fields .
 
In recent years, Global Wafer has expanded its enterprise scale through the acquisition of Japanese manufacturer Covalent, Denmark Topsil and American SunEdison.
 
From the perspective of the industrial structure, at present, the top five semiconductor wafer suppliers have accounted for more than 90% of the global market. Among them, Global Wafer and Siltronic ranked third and fourth respectively, and the remaining three suppliers were Shin-Etsu Chemical (ranked first), Shengko (ranked second), and SK Siltron of South Korea (ranked fifth).
 
However, if Global Wafer successfully acquires Siltronic, it may change the pattern of the global semiconductor wafer market. By then, Global Wafer's market share of 12-inch silicon wafers will jump to the second place in the world, surpassing Japan's Seiko, and second only to Japan's Shin-Etsu Chemical.