Powertech Technology Inc., Taiwan’s leading semiconductor testing and packaging provider, reported its lowest quarterly earnings in two years as first-quarter profit dropped 32.4% year-on-year amid industry headwinds.
The Hsinchu-based company posted net income of NT$11.75 billion (US$358 million) for the January-March period, with earnings per share of NT$1.58, according to an online investor conference held Monday. Revenue fell 15.5% to NT$154.94 billion compared to the same period last year, while gross margin slipped 0.4 percentage points to 17.1%.
Despite the disappointing results, CEO Boris Hsieh expressed confidence that the first quarter represented the bottom of the current cycle. The executive highlighted expectations for “significant recovery” in coming quarters, particularly from its DRAM business as a major U.S. customer has placed substantial orders.
The company is banking on artificial intelligence and high-performance computing applications to drive growth. Hsieh noted that DRAM, NAND flash memory, and solid-state drive orders are anticipated to increase steadily from the second quarter onward.
Powertech faces challenges from global trade tensions, with Hsieh acknowledging U.S. reciprocal tariffs could disrupt the semiconductor industry and impact consumer electronics markets. While the U.S. recently exempted semiconductors from its baseline tariffs, a new national security investigation into chip imports announced earlier this month could potentially lead to future levies.
The chip packaging firm maintains that its globally diversified sales network positions it to weather tariff uncertainties with minimal impact. Taiwan’s semiconductor sector remains crucial to global technology supply chains, with the island producing approximately 60% of the world’s semiconductors.
Industry analysts project continued demand growth for advanced packaging services as AI applications proliferate and memory markets stabilize throughout 2025.
