GlobalWafers (6488 TT) Taiwan
Top runner on the brownfield track - set to benefit from lighter brownfield capex intensity (one-third lower than greenfield) and stronger 12” ASP momentum. NDR’s analysis shows that industry ASPs would need to grow ~40% by 2024e from 2020 levels for greenfield projects to achieve an EBIT of 20% for wafer makers, providing a key advantage to GlobalWafers who can continue to run on the brownfield for 2.5 years. Initiates coverage with a Buy-rating and TP of NT$963.