Powertech Technology, one of Taiwan’s largest chip packaging providers, is betting heavily on artificial intelligence demand with a $1 billion expansion of its fan-out panel-level packaging technology, targeting GPU and CPU applications as customers scramble for advanced packaging capacity.
The Hsinchu-based company reported third-quarter revenue of NT$19.97 billion ($620 million), up 11% from the prior quarter. Net income jumped 60% to NT$1.54 billion ($47.8 million), though it remains 10% below year-ago levels. The company expects sales to climb by a high-single-digit percentage this quarter as customers place advance orders to hedge against tariff uncertainty.
Powertech plans to boost its FOPLP output to 6,000-7,000 panels monthly by 2026 from just 1,000 currently. The entire expansion, requiring NT$31 billion of a total NT$40 billion ($1.24 billion) capital budget, has already been reserved by clients. The company operates the only commercial FOPLP line producing 510x515mm panels with 5-micron line spacing.
The aggressive buildout comes as substrate shortages persist. BT and ABF substrates remain in tight supply, with prices rising up to 20% as AI applications consume available capacity. To prioritize FOPLP, Powertech is postponing new high-bandwidth memory projects until 2027, a delay that could test investor patience if AI demand falters.
Third-quarter packaging utilization ran 85-90%, with testing at 70%. The company booked NT$240 million in currency gains but faced NT$200 million in higher summer electricity costs.
