Phison Electronics, a leading memory controller chip manufacturer, reported NT$1.14 billion (US$37.8 million) in Q1 net profit, plummeting 53% year-over-year as inventory levels reached a concerning 253 days. While quarterly revenue increased 10.1% to NT$13.84 billion (US$457 million) compared to Q4 2024, the company saw its profit margin shrink dramatically to 8.2% from 19% in the previous quarter.
CEO Pan Jian-cheng acknowledged the seasonal slump due to Lunar New Year holidays but pointed to improving market conditions starting in February as NAND production cuts began taking effect. The company’s deliberate inventory buildup strategy, which began in late 2024, aims to position Phison for an anticipated market recovery.
Despite facing supply constraints for PCIe 4.0 SSD controllers amid rebounding PC market demand, Phison remains vigilant about escalating international trade tensions affecting customer behavior. The company is implementing more aggressive communication strategies with global partners while maintaining a cautiously optimistic outlook for the remainder of 2025, particularly as it leverages its proprietary aiDAPTIV+ edge AI solution to help clients accelerate AI digital transformation initiatives.
