On August 10, Taiwan-based wafer foundry Powerchip released its consolidated revenue flash report for July. The month’s consolidated revenue reached NT$6.669 billion, rising 3.01% month-on-month and 70.54% year-on-year to hit a nearly four-year high, driven primarily by rebounding market demand and foundry price hikes. Cumulative revenue from January to July stood at NT$37.531 billion, marking a 42.68% year-on-year increase.
During a previous earnings briefing, Powerchip stated it raised wafer input prices for 8-inch and 12-inch logic foundry services by roughly 10% to 15% in July. It also implemented a structural price increase of around 45% for DRAM wafer orders the same month, with the related earnings impact projected to reflect in revenue and profit performance starting in October.
Chu Hsien-kuo, General Manager of Powerchip, noted recent market uncertainties. Factors including stock market corrections, concerns over excessive capital expenditure expansion by large U.S. AI cloud service providers (CSPs), and overheating South Korean leveraged DRAM ETFs have dampened overall market sentiment. However, actual client demand, product pricing trends, supply shortages and tight production capacity remain fundamentally unchanged. Powerchip’s core operations stay resilient with steady organic growth momentum.
Aside from advancing wafer-to-wafer stacking technology, Powerchip collaborates with Micron on the PWF initiative and manufactures critical components such as IPDs and interposers. Chu Hsien-kuo emphasized that Powerchip aims to evolve from an advanced packaging foundry service provider into a supplier of key components. This strategy helps the firm avoid cutthroat competition in the saturated traditional wafer foundry market amid mainland Chinese industry rivals. Leveraging its dual expertise in memory and logic processes, Powerchip will unlock integrated synergies to boost long-term competitiveness.
Tzai-Chu Hsieh, Acting Chairman of Powerchip, commented on the lagged pricing transmission effect for foundries. Unlike end-product enterprises that can pass market price shifts through immediately, Powerchip faces a natural time gap before stronger demand and higher average selling prices (ASP) translate fully into top-line growth.
Looking ahead to the second half of the year, Tzai-Chu Hsieh voiced upbeat operational expectations. Monthly revenue growth is projected through year-end, with full-year revenue peaking in December. The company is on track to deliver solid annual revenue and profit results. Per corporate bylaws, dividends are distributed semi-annually whenever the firm turns a profit. The board of directors plans to review and approve the H1 dividend distribution plan next month, honoring the pledge Chairman Huang Chung-jen made at last month’s earnings briefing.
(Reprinted from https://news.eccn.com/）