Powerchip Semiconductor Manufacturing posted a wider second-quarter loss as Taiwan’s currency strength eroded profitability, even as the contract chipmaker positioned itself to benefit from the artificial intelligence memory surge.
The foundry reported a net loss of NT$3.33 billion ($113 million), expanding from NT$1.1 billion in the previous quarter. Losses per share deepened to NT$0.8 from NT$0.26. The New Taiwan dollar’s 4.89% appreciation against the greenback generated NT$1.59 billion in foreign-exchange losses, according to President Martin Chu.
Revenue growth remained tepid at 1.5% despite a 9% increase in shipment volumes to roughly 400,000 wafers. The stronger currency reduced average selling prices by 2-3%.
Powerchip’s outlook hinges on capitalizing on major DRAM makers’ strategic shift. Samsung, SK Hynix, and Micron plan to cease DDR4 shipments between late 2025 and early 2026, creating opportunities for specialized foundries. The company expects this transition to boost pricing power within three to four months.
The foundry is ramping production of advanced memory packaging technologies, including CoWoS interposers for AI applications. TSMC plans to withdraw from gallium nitride semiconductor production within two years, potentially opening another market segment for Powerchip.
Management outlined five strategic priorities, emphasizing DRAM foundry services and 3D AI manufacturing processes. The company expects demand for its 24-nanometer SLC Flash memory to strengthen as major suppliers exit the market.
The broader DRAM market faces supply constraints as leading manufacturers shift capacity toward DDR5 and high-bandwidth memory. Contract prices for conventional DRAM are projected to rise 10-15% in the third quarter, according to industry analysts.
