The supply of silicon wafers falls short of demand next year, aggravating customers' scrambling to sign long contracts.

2021 is coming to an end, but the shortage of silicon wafers can hardly be alleviated, and the situation will intensify next year because the growth rate of supply is less than that of demand. In this context, downstream customers have to sign long orders, the overall industry is expected to continue to cycle upward.

According to MoneyDJ, with the new production capacity of wafer mills coming out, upstream silicon wafer manufacturers feel that customer demand exceeds supply. In order to ensure that material sources have signed long contracts with silicon wafer factories next year, the heat of the market has reached another peak, including Globe, Taisheng, SUMCO and other related manufacturers are expected to benefit from this.

Xu Xiulan, chairman of Global Crystal, said that at present, the long-contract LTA coverage of global crystal is higher than the previous peak in 2017-2018, and the price of long-term contracts renewed is also an upward trend.

Taishengke also believes that the company will have full production and all sales by the first half of next year, and the visibility of orders can be seen further. In terms of price, it is optimistic that next year's ASP trend will return to the peak level of 2017-2018.