Powerchip Semiconductor Manufacturing Co., Ltd. projects a modest increase in its utilization rate and revenue for the third quarter of 2024, with an uptick in the usage of 12-inch and 8-inch wafers. Memory wafer utilization is anticipated to surpass 90%, nearing full capacity, driven by rising orders for logic chips used in mobile phones, automobiles, and notebooks.
During a recent online corporate briefing, Deputy General Manager Tan Zhongmin detailed that the 12-inch logic chip wafer utilization rate could rise to 80%, and the 8-inch wafer rate to about 70%. Despite the robust demand, the new Tongluo plant’s ongoing trial production is expected to affect the company’s gross profit margin negatively.
The new Miaoli Tongluo P5 plant currently has a monthly production capacity of approximately 8,500 wafers, with expectations to reach over 20,000 pieces by the second half of 2025, contingent on market conditions. The strong demand from DRAM and flash memory foundry customers has pushed the company’s memory wafer production to near full capacity, contributing to stable and potentially rising market prices.
For the second quarter, Powerchip Semiconductor reported consolidated revenue of NT$11.123 billion, marking a 3% quarterly increase and a 1% year-over-year rise. However, the gross profit margin dropped by 10 percentage points due to the Tongluo plant’s trial production phase and external factors such as earthquakes. The second quarter also saw a self-reported loss of NT$1.958 billion, translating to a loss per share of NT$0.47.
As the company looks to expand its market presence, it remains focused on stable customer pricing and exploring non-mainland Chinese markets. Additionally, Power Semiconductor is engaging in technical cooperation with partners in India and Japan, aligning with its strategic goals for overseas expansion. The company’s capital expenditure for 2024 is projected to be around US$944 million.
