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Investing.com - UBS upgraded Globalwafers Co Ltd. (6488:TT) from Neutral to Buy on Tuesday, doubling its price target to NT$700.00 from NT$350.00 amid improving industry outlook.
The upgrade follows UBS’s revised industry utilization estimates for 12-inch silicon wafers, now projected at 81.8% for 2025 and 82.2% for 2026, up from previous forecasts of 77.7% and 76.4% respectively. The firm also introduced a 2027 estimate of 83.9% utilization.
UBS identified two key drivers behind its more positive outlook: major industry players slowing greenfield capacity expansion in recent quarters, and 12-inch wafer demand beginning to recover more meaningfully in the second quarter of 2025 with mid-teen percentage year-over-year growth.
The firm forecasts 12-inch wafer demand to grow 11% in 2025 and 10% in 2026, supported by improving memory demand and rising foundry utilization rates across the semiconductor industry.
Despite Globalwafers stock already rallying 40% in September, UBS expects further upside potential, citing catalysts including signs of higher silicon wafer utilization, stabilizing spot prices, and Globalwafers’ accelerating U.S. expansion plans from 2026.
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