Wafer Works is building a 12-inch wafer fab in Erlin, Changhua County, with a monthly capacity of 200,000 units to meet global demand. The topping-out ceremony is scheduled for December 5, 2024, according to president H.Y. Chang.
To complement its Taiwan operations and meet demand from Chinese customers, Wafer Works' second-phase facility in Zhengzhou, Henan, managed by its Shanghai subsidiary, will provide complementary support. With a capacity comparable to the Erlin facility in Taiwan, the two sites are poised to significantly boost Wafer Works' overall supply capability.
Wafer Works' strategy is guided by three core factors—geopolitics, market development, and customer demand—according to Chang in an interview with the Photonics Industry & Technology Development Association (PIDA).
The company positions Taiwan to align with international standards and directs its Shanghai operations to serve the Chinese market. It is prioritizing 12-inch silicon wafers while transitioning smaller-sized products to improve operational efficiency.
Wafer Works serves major clients like TSMC, UMC, Infineon, and Onsemi. In early February, its Shanghai division completed an A-share listing, using the raised funds for capacity expansion initiatives.
Presently, 8-inch wafers comprise approximately 75% of Wafer Works' total revenue, with epitaxy contributing 51%. The company anticipates that 12-inch wafers will become an increasingly significant revenue driver.
Wafer Works is expanding beyond silicon-based semiconductors into advanced wide-bandgap materials, particularly in GaN epitaxy for both GaN on silicon and GaN on silicon carbide. Through strategic partnerships, the company is developing GaN applications and specialized SiC substrate technologies to seize opportunities in next-gen semiconductor materials.
Wafer Works has also invested in SweGaN, a Swedish firm specializing in GaN-on-SiC epi-wafers, to focus on high-frequency, high-voltage applications in electric vehicle inverters and power management chips.
From 2024 to 2026, Wafer Works will focus on GaN-on-Si for applications like AI data centers. The company will then shift to GaN-on-SiC between 2026 and 2028, targeting electric vehicles, solar (PV) inverters, and 6G technology. After 2028, it plans to develop gallium oxide (Ga₂O₃) for high-current, high-voltage applications in sectors like transportation, wind energy, and power markets.
With the significant power demands of AI servers, enhancing power supply efficiency is a priority. GaN technology can increase power density, enabling miniaturization and optimizing energy efficiency.
Through years of investment, Wafer Works has developed expertise in silicon-on-insulator (SOI) wafer technology, applying it primarily in MEMS sensors, power semiconductors, and silicon photonics.
SOI serves as a platform for silicon photonics (SiPh), facilitating the integration of optical transceivers and enabling on-chip optical transmission. This technology provides benefits like higher efficiency, lower latency, reduced size, energy savings, and cost efficiency.
