Foreign Investment Goldman Sachs pointed out in its research report that the investment rating of silicon crystal supplier bulb crystals has been adjusted from "neutral" to "buy in". Because analysts expect that under the strategy of memory industry bottom-up, the gradual fermentation of advanced American process layout, and the extreme transformation to high-value special crystal products, the operation of bulb crystals will usher in a significant turning point and the prospects are promising.
Goldman Sachs reported on the three major driving forces for the future growth of GC. First of all, the recovery of memory industry is one of the key factors. About 30% to 40% of the global crystals are collected from memory customers. As the memory climate improves, it is expected that by 2026, the energy utilization rate of the crystal circle will increase and the price will also receive better support.
Secondly, through the U.S. production, the world is the only recent businessman to expand the new 12-inch globe production capacity in the United States, and under the huge investment wave of crystal foundry manufacturers and integrated component manufacturers (IDMs) in the United States, it is also necessary to prioritize the domestic purchasing of new production capacity. It is expected that from the second half of 2025 to the first half of 2026, the revenue contribution in the US market will gradually increase.
Third, turn to a high-value special crystal. The bulbous crystals are accelerating their transformation, focusing on the development of high-value special crystals such as silicon carbide (SiC) and nitride (GaN). These products not only increase gross profit margins, but also have relatively competitive advantages due to their high technical gateways. Improved product combinations are expected to drive long-term growth and gross margin expansion of bulbs.
The report further points out that the second half of 2026 is expected to become the turning point of profit for global crystals. At the time, benefiting from the higher acquisition combination of high-level advanced process wafers and high-value special wafers, the gross profit margin of the bulb crystal is expected to rebound to more than 30%. With the memory industry's cycle bottoming, the P/E ratio of bulbs is also expected to return to the rising cycle level. Based on the above positive developments, Goldman Sachs has increased its EPS forecast for Global Crystal from 2026 to 2027 by 7% to 11%. At the same time, the target price-to-earnings ratio increased from 14 times to 20 times, which greatly increased the target price from NT$380 to 600, and gave investment evaluations of "buy in".