Powerchip Semiconductor Manufacturing (6770)
Powerchip Semiconductor Manufacturing (6770) is a Taiwanese foundry with DRAM roots that makes memory, display driver, and power chips on contract. In ETFpedia it is the memory-foundry leg of the Asia memory semiconductor concept. In Q1 2026 it booked its first profit since 2023, a NT$14.2 billion quarter boosted by selling its Tongluo fab to Micron for US$1.8 billion.
| Ticker | 6770 |
|---|---|
| Exchange | TWSE |
| Sector | Technology · Foundry (Memory & Specialty) |
| Country | Taiwan |
| Related index | Akros Asia Memory Semiconductor Top 10 Index (AAMST10) |
| Wikidata | Q701636 |
| Last updated | 2026-06-10 |
Next event:Next earnings · Q2 2026 investor conferenceestimated · Date not yet announced. PSMC held its Q1 2026 conference on April 21 and typically reports about a month after quarter end, so a late-July 2026 date is expected; estimated, not company-confirmed. (source)
Latest reported quarter:Q1 2026 (ended Mar 31, 2026) (reported2026-04-21)
Powerchip returned to profit in Q1 2026: revenue rose 6% quarter over quarter and 22% year over year to NT$13.57 billion, gross margin improved to 10% from 6% in Q4 2025 and minus 5% a year earlier, and net profit reached NT$14.2 billion, swollen by the disposal gain on the US$1.8 billion sale of its Tongluo P5 fab to Micron. It was the foundry's first profitable quarter since 2023; utilization ran near 88% and is forecast to hit 100% in Q2.
| Revenue | NT$13.57B+22% YoYYoY · +6% QoQ |
|---|---|
| Gross margin | 10% · Up from 6% in Q4 2025 and minus 5% a year earlier |
| Net profit | NT$14.2B · Includes Tongluo P5 fab disposal gain; first profit since 2023 |
| Capacity utilization | ≈88% |
Guidance:Q2 2026 (management commentary)
| Capacity utilization | ≈100% expected |
|---|---|
| Gross margin & net profit | Substantial QoQ jump expected |
| Foundry price hikes since January | 12-inch DDIC +30% · CIS +20% · 8-inch DDIC +15% |
PSMC issues no formal numeric guidance; president Martin Chu said price hikes should boost business by a double-digit percentage, with the memory supply crunch seen lasting into H2 2026 and beyond.
Recent & upcoming events
- · Micron signs US$1.8 billion deal for the Tongluo P5 fab.Micron signed an exclusive letter of intent to buy PSMC's P5 fabrication site in Tongluo, Miaoli County for US$1.8 billion in cash, alongside a long-term strategic relationship covering post-wafer assembly processing for Micron and support for PSMC's legacy DRAM portfolio. (source)
- · Micron completes the Tongluo P5 acquisition.Micron closed the acquisition and began retrofitting the roughly 300,000 square feet of 300mm cleanroom for leading-edge DRAM including HBM, with meaningful shipments expected from its fiscal 2028 and a comparable second Tongluo facility planned by the end of Micron's fiscal 2026. (source)
- · Q1 2026: first quarterly profit since 2023.Revenue rose 22% YoY to NT$13.57 billion and net profit hit NT$14.2 billion on the fab-sale disposal gain; gross margin improved to 10%, utilization ran near 88%, and management guided a jump in margin and profit for Q2 2026 with utilization reaching 100%. (source)
Figures are from PSMC's Q1 2026 investor conference of April 21, 2026 as reported by Taipei Times and DIGITIMES; deal terms are from Micron's January and March 2026 press releases. PSMC posts quarterly statements on its investor site.
Figures are as of 2026-06-10 and reflect the most recent public filings/IR releases; they are updated after each earnings report.
What does Powerchip Semiconductor Manufacturing do?
PSMC, as the company calls itself, used to make DRAM under its own name; today it rents out the fabs instead. It is a contract chipmaker running 8-inch and 12-inch lines for whoever needs them: memory designers without fabs, display driver chip (DDIC) vendors, power management and image sensor houses. In Q1 2026 memory foundry work was 44% of revenue, power management chips 18%, and display drivers 10% (Taipei Times). That memory-foundry layer is its role in the Asia memory chain: while Samsung, SK Hynix, and Micron reserve their own fabs for HBM and leading-edge DRAM, PSMC is one of the few places second-tier memory designers can still buy 12-inch wafer starts.
How is the AI memory cycle driving PSMC’s business?
Twice over: through its order book and through its real estate. The order book turned first, as the legacy-chip shortage let PSMC raise 12-inch display driver prices about 30%, image sensor prices 20%, and 8-inch display driver prices 15% since January 2026 (Taipei Times). The real estate mattered more. Desperate for DRAM cleanroom, Micron paid US$1.8 billion in cash for PSMC’s P5 fab in Tongluo, signed on January 17, 2026 and closed on March 15, gaining roughly 300,000 square feet of 300mm cleanroom it is retrofitting for leading-edge DRAM, including HBM (Micron). The deal also made PSMC a long-term partner for Micron’s post-wafer assembly processing, with support for PSMC’s legacy DRAM portfolio and US$300 million in prepaid equipment orders (Micron, Taipei Times). Company spokesman Eric Tan summed up the inflection:
“Powerchip has entered a positive cycle. We are optimistic about our business outlook.”
— Eric Tan, spokesman, Powerchip Semiconductor Manufacturing (Taipei Times)
What did PSMC report most recently?
At its investor conference on April 21, 2026, PSMC reported Q1 2026 revenue of NT$13.57 billion, up 6% quarter over quarter and 22% year over year (DIGITIMES). Net profit reached NT$14.2 billion, larger than revenue itself because it includes the disposal gain on the Micron fab sale, and gross margin improved to 10% from 6% in Q4 2025 and minus 5% a year earlier (Taipei Times). It was the company’s first profitable quarter since 2023, ending a loss streak that spanned the whole memory downturn. Factory utilization ran near 88%.
What is PSMC’s guidance?
PSMC gives no formal numbers, but the April commentary was specific about direction: gross margin and net profit are expected to jump in Q2 2026, with utilization rising from about 88% to 100% as the January price hikes flow through a full quarter (Taipei Times). President Martin Chu said the price increases should boost business by a double-digit percentage and that the memory supply crunch should persist through the second half of 2026 and beyond as AI model launches keep absorbing capacity. The company is also putting the fab-sale proceeds to work, with capex of about US$512 million aimed at DRAM-related production ramping from the second half of 2028 (Taipei Times).
What are the risks for PSMC?
- A one-time gain flatters the bottom line. Most of the NT$14.2 billion Q1 profit was the Tongluo disposal gain; the underlying business only just crossed back into the black at a 10% gross margin (Taipei Times).
- Smaller asset base. Selling P5 traded future capacity for cash, and PSMC’s new DRAM-related production is not slated to ramp until H2 2028.
- Commodity-foundry economics. Display drivers, sensors, and legacy memory are the first prices cut when the cycle turns, as ten loss-making quarters just demonstrated.
- Customer concentration in the partnership. The assembly and legacy-DRAM relationship deepens reliance on Micron’s roadmap decisions (Micron).
Related securities, concepts & terms
- Asia Memory Semiconductorparent
- Nanya Technology (2408)related
- DRAM (Dynamic Random-Access Memory)related
Related indices & ETFs
- Akros Asia Memory Semiconductor Top 10 Index (AAMST10) · Akros Technologies, Inc.Pure-play index of Asia's top 10 memory-semiconductor companies that includes Powerchip (PSMC); no licensed tracking ETF yet.
These references describe index-tracking relationships as a matter of fact and are not a recommendation to buy any product. Akros, as the index provider, may receive licensing fees from product sponsors. Review the product's prospectus before investing.
Frequently asked questions about Powerchip Semiconductor Manufacturing
What does Powerchip Semiconductor Manufacturing do?
PSMC is a Taiwanese contract chipmaker (foundry) with a DRAM heritage. It manufactures memory, display driver, power management, and image sensor chips for other companies in its 8-inch and 12-inch fabs; in Q1 2026 memory foundry work was 44% of revenue, power management chips 18%, and display drivers 10% (Taipei Times). It is one of the few places fabless customers and second-tier memory designers can rent 12-inch capacity while the memory giants reserve their own fabs for HBM and leading-edge DRAM.
What was PSMC's latest quarterly revenue?
In Q1 2026 (the quarter ended March 31, 2026), PSMC's revenue rose 6% quarter over quarter and 22% year over year to NT$13.57 billion (DIGITIMES). Net profit reached NT$14.2 billion, boosted by the disposal gain on the US$1.8 billion sale of its Tongluo P5 fab to Micron, and gross margin improved to 10% from 6% the prior quarter; it was the company's first profitable quarter since 2023 (Taipei Times).
What is PSMC's guidance?
PSMC does not issue formal numeric guidance, but management told its April 21, 2026 investor conference to expect a jump in gross margin and net profit in Q2 2026, with factory utilization rising from about 88% to 100%. Since January it has raised 12-inch display driver chip prices about 30%, image sensor prices 20%, and 8-inch display driver prices 15%, and president Martin Chu said the hikes should boost business by a double-digit percentage (Taipei Times).
When does PSMC report its next earnings?
PSMC has not yet announced its Q2 2026 investor conference date. It held the Q1 2026 conference on April 21, 2026, about three weeks after quarter end, so the Q2 release is expected in late July 2026; that timing is estimated, not company-confirmed (PSMC investor relations, DIGITIMES).
Why did Micron buy PSMC's Tongluo fab?
To add DRAM cleanroom fast during the AI memory shortage. Micron paid US$1.8 billion in cash for the P5 site in Tongluo, Miaoli County, gaining roughly 300,000 square feet of existing 300mm cleanroom it is retrofitting for leading-edge DRAM including HBM, with meaningful shipments expected from its fiscal 2028 and a second Tongluo facility planned by the end of fiscal 2026 (Micron). The deal also set up a long-term relationship: PSMC handles post-wafer assembly processing for Micron and gets support for its legacy DRAM portfolio, plus US$300 million in prepaid equipment orders (Micron, Taipei Times).
Sources & references
- Powerchip predicts substantial jump in quarterly gross margin and profits · Taipei Times, 2026-04-23
- Powerchip returns to profitability in 1Q26 following fab sale to Micron · DIGITIMES, 2026-04-22
- Micron Signs Letter of Intent to Purchase Tongluo Site, Begin Strategic Partnership with PSMC · Micron Technology, Inc., 2026-01-17
- Micron Completes Acquisition of PSMC's Tongluo P5 Site in Taiwan · Micron Technology, Inc., 2026-03-15
- Quarterly Financials | PSMC Investor Relations · Powerchip Semiconductor Manufacturing Corporation, 2026-04-21