GlobalWafers becomes second largest wafer producer after acquisition of German company

The Taiwanese wafer producer GlobalWafers wants to take over its German competitor Siltronic. If the acquisition plans are approved, the company will become the second largest wafer manufacturer in the world.

GlobalWafers reports that Germany’s Siltronic has agreed to acquire a 70.27 percent majority stake for more than six billion euros by the Taiwanese company. The acquisition still has to be approved by competition authorities. If approved, GlobalWafers expects to complete the acquisition in the second half of 2021. The German Bundeskartellamt has already granted approval at the beginning of February, but the authorities of Taiwan, the US and Japan, among others, are still considering the plans.

Through the merger, GlobalWafers hopes to double its production. Both GlobalWafers and Siltronic were in the top five of wafer manufacturers worldwide. The acquisition would create a company that occupies second place in market share for the supply of 200mm and 300mm wafers. Only the Japanese Shin Etsu is even bigger.

The importance of the supply of wafers has increased since last year due to chip shortages. Several parts of the chip supply chain are under pressure due to high demand.