New LTA arrived earlier than anticipated: GWC’s new 10-year LTA with Micron could cause semi wafer prices to potentially grow meaningfully

研报英文原文证据摘录

New LTA arrived earlier than anticipated: GWC’s new 10-year LTA with Micron could cause semi wafer prices to potentially grow meaningfully

Global Markets Research

GlobalWafers 6488.TWO 6488 TT 11 July 2026

EQUITY: TECHNOLOGY

RatingＮew LTA arrived earlier than anticipated Remains Buy

Target priceGWC’s new 10-year LTA with Micron could cause semi Increased from TWD 1,800.00wafer prices to potentially grow meaningfully TWD 1,200.00

Maintain Buy on GWC with a new TP of TWD1,800; LTA implies upcycle is Closing9 July 2026price TWD 1,350.00

underway

On 9 July, Micron (MU US, Not rated) and GlobalWafers (GWC) announced that Micron Implied upside +33.3%would provide GWC with a USD500mn prepayment to secure the supply of 12″ semi

wafers under a 10-year agreement (LTA). This LTA announcement came sooner than we Market Cap (USD mn) 20,085.7

anticipated, which in our view implies that: 1) memory companies have ample cash to ADT (USD mn) 193.3

secure upstream supply early; and 2) supply-demand dynamics could turn more

favorable. As a result, we raise our 2026-28F earnings forecasts for GWC by 7-99%, and Relative performance chart

increase our TP to TWD1,800 (from TWD1,200), based on 6x 2028F BVPS of TWD300

(vs 4.8x 2028F BVPS of TWD252 previously). The stock is trading at 4.5x 2028F BVPS of

TWD300. Historically, taking the 2H16-1H18 semi wafer upcycle as an example, LTAs

were first negotiated from 1H17, implying the upcycle was underway, and the upcycle

would not end until end demand weakened.

LTA pricing for semi wafers with memory customers could potentially double

We believe that LTA pricing for semi wafers supplied to memory customers could

potentially double, as memory wafer price can reach tens of thousands of USD per piece,