Shin-Yue, the world's largest silicon wafer maker, announced price increases

The global semiconductor industry is facing a shortage of capacity and rising prices of materials. Japan's Shin-Etsu has announced a 10-20% increase in the price of its silicon products for the first time since 2017.

Shin-Yue said on its website that the cost of silicon metal, the main raw material for silicone, is rising, and strong demand growth in China has led to supply shortages and higher production costs.

 

In addition, due to supply shortages, methanol costs and catalyst raw material costs (including platinum costs) are also increasing, as are cost factors such as logistics costs and secondary material costs, which have become a pressure factor on earnings.

Mr Shin-etsuki said it had been difficult to absorb the increased costs through his own efforts to reduce manufacturing costs and had had to raise the prices of all silicon products.

Data show that shin-yue chemical was established in 1926, the main products include: polyvinyl chloride, organic silicon, semiconductor silicon, cellulose derivatives, rare earth magnets and other materials.

Among them, in the semiconductor silicon wafer market, Shin-Etsu Chemical is currently the world's largest supplier, with a share of 29.4%, while Japan Sungaku has a share of 21.9%, the world's second.

But with the acquisition of Germany's Siltronic AG, formerly the No. 3 wafer maker, by GlobalCrystal, of No. 4, the combined company will overtake Shengco to become No. 2, with a share of 26.7 percent, behind Shin-Etsu.