Taiwan-based Phoenix Silicon International Corp, the second-largest global supplier of reclaimed wafers, has started building a new plant with an investment of NT$2.5 billion (US$76.3 million).

This facility aims to meet the growing demand for reclaimed wafers driven by the expansion of AI technologies.

Phoenix reported that producing a single 3-nanometer or 5-nanometer wafer requires over two reclaimed wafers for testing.

The transition to 2-nanometer wafer production, which commenced this year, has also driven the demand for reclaimed wafers.

By the end of 2025, Phoenix plans to boost its annual capacity to 800,000 12-inch wafers, up from 630,000 units in 2024.