Silicon wafer demand is set to rise on the back of AI chip building, good news for wafer makers and a sign chipmakers keep expanding.

• GlobalWafers chair Doris Hsu expects the silicon wafer industry to grow at a double-digit pace for the next two years, with both shipments and prices rising together.
• Long-term supply contracts with customers are still being negotiated, but several are close to done and the pricing direction looks healthy.
• Chip customers are building new plants and squeezing more output from old ones at the same time, pulling demand forward.
• Wafers are getting harder to make — square wafers, odd shapes, compound materials and see-through wafers are now in the mix, which supports higher prices.
• Advanced packaging revenue was tiny last year but is now starting to contribute, and the company is pushing into silicon photonics using 12-inch wafers for waveguides.

Outlook: Expect firmer wafer prices and higher shipments through the next two years as AI-driven chip expansion continues.