On January 17, Shanghai Silicon Industry (SH688126, share price of 19.40 yuan, market value of 53.295 billion yuan) released the 2024 annual performance forecast, the company expects a net profit loss of 840 million yuan ~ 1.000 billion yuan in 2024, and the company's net profit attributable to the parent in 2023 will be 18,700 yuan.

It is reported that in 2024, the global semiconductor market will usher in a recovery, and the World Semiconductor Trade Statistics Organization predicts that the global semiconductor market will exceed 620 billion US dollars, an increase of 19% compared with the same period last year. However, it will take a certain period for the market recovery to be transmitted from downstream to upstream, and at the same time, the recovery of the semiconductor wafer market is less than expected due to the high inventory level of the global semiconductor industry.

The International Semiconductor Equipment and Materials Association predicts that in 2024, the global semiconductor silicon wafer shipment area will decline slightly by 2.5% year-on-year, of which the shipment area of 300mm semiconductor silicon wafers will increase slightly by 1.4% compared with the same period last year, and the shipment area of 200mm semiconductor silicon wafers will continue to decline by 12.1% year-on-year; At the same time, the global semiconductor silicon wafer (including SOI silicon wafer) market size is expected to be US$13.3 billion in 2024, a year-on-year decrease of about 5.6%.

In this regard, Shanghai Silicon Industry said that the company's operating performance is consistent with the overall market situation, of which the unit price of 300mm semiconductor silicon wafers has declined due to market impact and intensified competition, but its sales volume has increased greatly with the company's production capacity and market recovery, while the sales volume of 200mm semiconductor silicon wafers (including SOI silicon wafers) has basically been flat and slightly decreased, and the unit price of some products has decreased greatly due to the impact of the market.

According to the third quarter report of Shanghai Silicon Industry in 2024, in the third quarter of 2024, the global semiconductor market still showed a continuous recovery trend, and the total silicon wafer shipments also increased compared with the same period last year, with the shipment area increasing by about 6% quarter-on-quarter and about 7% year-on-year. However, in terms of products, the main growth in wafer shipments still came from 300mm wafers, with the shipment area increasing by about 8% month-on-month and 13% year-on-year, while the demand for 200mm wafers and below is still relatively sluggish.

In addition, the main business of "Okmetic OY" and Shanghai Xinao Technology Co., Ltd., which were acquired by Shanghai Silicon Industry in the early stage, was 200mm semiconductor silicon wafers, which were greatly affected by the market during the reporting period, and there were signs of goodwill impairment, with a preliminary estimate of about 300 million yuan of goodwill impairment.

Shanghai silicon industry also said that due to the company's large investment in the early stage of the expansion project, the fixed cost is high, and the company has always adhered to a high level of R&D investment, the company's performance has been affected to a certain extent in the short term, but with the release of production capacity of the expansion project and the mass production of new products, the company's market competitiveness and profitability will be effectively improved.

Cover image source: Visual China