SUMCO to end wafer production at Miyazaki plant amid market shifts

SUMCO Corporation has announced a major reorganisation of its small-diameter silicon wafer production in response to shifting semiconductor market demands. In short, the company will transfer wafer production from its Miyazaki plant to other manufacturing facilities, aiming to enhance profitability and efficiency.

In a press release, the company explains the decision, pointing to the prolonged sluggish demand in the silicon wafer market. Factors contributing to this downturn include the drop-off from extraordinary demand during the COVID-19 pandemic and structural changes in the semiconductor supply chain driven by US-China trade tensions. While demand for cutting-edge AI and high-performance memory chips is expected to rise, small-diameter wafer sales — particularly for consumer, industrial, and automotive applications — remain weak.

Wafers of 150mm and smaller, in particular, are expected to see falling demand, with customers shifting to 200mm wafers or lowering their production capacity as manufacturing equipment reaches its end of life.

To adapt, SUMCO says it will reorganise the Miyazaki plant to improve efficiency through consolidation of the production capacity of small wafers. More specifically, this means is that the Miyazaki plant will transition into a monocrystalline production site, while wafer production will be transferred to other domestic plants in the SUMCO group and to Indonesia, effectively ending wafer production in Miyazaki by the end of 2026. 

Employees affected by the restructuring will be reassigned to 300mm wafer operations. SUMCO has allocated JPY 5.8 billion (EUR 36.8 million) in restructuring expenses.