Powerchip Semiconductor Manufacturing Corp. reported a first-quarter net loss of NT$1.1 billion (US$34.3 million), narrowing from the NT$1.5 billion loss in the previous quarter as the Taiwanese chipmaker navigates challenging market conditions.
Revenue for the January-March period reached NT$11.1 billion, a modest 2.7% increase year-on-year, while loss per share stood at NT$0.26, the Hsinchu-based foundry said Monday at its earnings conference.
Despite persistent financial strain, CEO Brian Chu said factory utilization rates improved to 73% during the quarter, helping reduce gross margin pressure. A technology transfer agreement with India’s Tata Group added NT$1.68 billion in licensing fees, boosting non-operating income.
The world’s seventh-largest pure-play foundry faces minimal direct impact from US tariff policies, with just 0.005% of products shipping directly to America. However, Chu warned that client uncertainty about potential tariff changes has shortened visibility into future orders, particularly beyond June.
“Client order patterns are fluctuating due to tariff uncertainty,” Chu said. Without these concerns, the company would likely maintain momentum into the second quarter as it continues receiving rush orders.
PSMC competes with Chinese foundries that are aggressively expanding capacity while cutting prices, creating pressure on profit margins for mature process technologies.
