Increase in AI demand sparks Phoenix's plan to double investment expenditure
Phoenix Silicon International Corp Boosts Reclaimed Wafer Production Capacity
Phoenix Silicon International Corp (PSI), the world's second-largest supplier of reclaimed wafers, has announced a significant increase in capital expenditures for this year. The company aims to invest NT$7.9 billion (US$264.1 million), up from the NT$3.53 billion budget approved last December. This investment will facilitate a substantial expansion of PSI's reclaimed wafer capacity, starting from 2026 [1].
The company's net profit for the first half of the year saw a 98% increase, reaching NT$330 million. Moreover, the gross margin improved significantly, reaching 35% during the same period [2]. These growth indicators underscore PSI's strategic position in the semiconductor market, particularly in the AI and high-performance computing (HPC) sectors.
The expansion in PSI's reclaimed wafer capacity is expected to boost monthly production to 1.2 million wafers per month by next year, marking a 41% surge. The annual reclaimed wafer output is projected to grow about 35% year-on-year, reaching 850,000 wafers per month [3].
PSI's CEO, Tony Tsai, attributes this demand to the rapid interest in front-end process technologies and back-end packaging, which are crucial for AI and HPC applications. The consumption of reclaimed wafers is expected to rise further as customers ramp up production of 2-nanometer chips later this year [4].
The expansion aligns with Phoenix's broader semiconductor growth, including investments by TSMC, Apple, and others in silicon fabrication and AI-powered manufacturing within the area, creating a robust local ecosystem benefiting AI and HPC supply chains [5].
However, the statement did not mention any potential impact of these expansions on the company's profitability or financial health. Additionally, the company did not provide any information about its competitors and their response to these capacity expansions [6].
The growth in PSI's output is driven by the surging demand for artificial intelligence and HPC applications. AI chips produced using leading-edge process technologies consume more reclaimed wafers than those made on older nodes [7]. This expansion is a positive indicator of increased capacity relevant to AI and HPC supply chains in silicon wafers [8].
References:
- Taiwan News
- Digitimes
- TechNode Global
- Nikkei Asia
- TechCrunch
- Reuters
- Semiconductor Engineering
- EETimes
The expansion in PSI's reclaimed wafer capacity is not only attributed to the increasing demand for high-performance computing (HPC) but also the growing interest in artificial intelligence (AI) applications. As AI chips require more reclaimed wafers due to their use of leading-edge process technologies, this growth in PSI's output is serving as a positive indicator for the AI and HPC supply chains in the semiconductor industry.
The addition of cutting-edge artificial-intelligence technologies is expected to boost Phoenix Silicon International Corp's production capabilities, further cementing their strategic position in the global semiconductor market, specifically in the AI and HPC sectors.
