Powerchip Semiconductor Manufacturing Corp. reported quarterly revenue of NT$11.84 billion ($387 million) for the third quarter, up 5% from the previous period, as memory chip pricing recovered from recent lows. The Taiwanese foundry’s loss per share narrowed to NT$0.65 from the prior quarter, though the company remains unprofitable.
General Manager Brian Shieh told investors that capacity utilization improved to 78% from 75% in the second quarter. The executive attributed the gains to tightening supply of niche DRAM products, which are being squeezed as major manufacturers redirect production capacity toward more lucrative high-bandwidth memory chips for artificial intelligence applications.
Powerchip’s claims of sustained pricing momentum face headwinds in its logic foundry business, where IT and consumer electronics demand remains sluggish. Following China’s October holiday, panel manufacturers reduced production by 5% to 10%, pressuring the supply chain. While flagship smartphone launches have stimulated high-end demand, mid-range and budget phone sales continue to lag.
The company’s advanced packaging operations, including wafer-on-wafer 3D stacking and silicon interposers for AI chips, generated just 2% of total revenue in the third quarter. Shieh said these technologies are in proof-of-concept testing with clients, with volume production not expected until late 2025.
The foundry’s partnership with India’s Tata Group could eventually bring royalty payments exceeding NT$20 billion ($653 million), but Shieh acknowledged mass production at the planned facility won’t materialize before 2027.