Japan Chemicals: Specialty: Micron to sign 10-year long-term wafer agreement with GlobalWafers; positive for two Japanese wafer makers

Research evidence excerpt

Japan Chemicals: Specialty: Micron to sign 10-year long-term wafer agreement with GlobalWafers; positive for two Japanese wafer makers

Equity Research

10 July 2026 | 9:09AM JST

Japan Chemicals: Specialty: Micron to sign 10-year long-term wafer

agreement with GlobalWafers; positive for two Japanese wafer makers

On July 9 (EDT), Micron Technology (covered by our US technology & semiconductor Atsushi Ikeda

+81(3)4587-9940 |

analyst James Schneider) announced a plan to invest up to US$3 bn to strengthen atsushi.ikeda@gs.com

Goldman Sachs Japan Co., Ltd.

the US semiconductor supply chain ecosystem and realize the critical semiconductor

Yuri Izumikawa

manufacturing footprint necessary for future technological innovation (release). As +81(3)4587-3643 |

part of this, the company will provide GWC (GlobalWafers; Not Covered) with yuri.x.izumikawa@gs.comGoldman Sachs Japan Co., Ltd.

US$500 mn in strategic financing support, as well as enter a 10-year long-term

supply agreement (LTA) for silicon wafers and explore collaboration on

next-generation wafer technologies. We summarize the potential implications for the

silicon wafer industry, as well as for Shin-Etsu Chemical and SUMCO, below. In short,

we see potentially positive implications for both Japanese companies. We reiterate

our Buy ratings on the two stocks (see our earnings revisions report for

semiconductor and electronic materials companies and our Asia Technology

investment strategy report).

The surprises in this announcement are likely the possibility of the LTA starting

earlier than expected and the 10-year contract period. We assume that many of the

LTAs currently held by Shin-Etsu Chemical, SUMCO, and others are roughly 5- to

7-year agreements that generally run until the end of 2027 or the end of 2028,