PSMC Q3 Revenue NT$11.651 Billion, NT$489 Million Loss

On October 22, Powerchip Semiconductor Manufacturing Corporation (PSMC) announced its Q3 2024 financial results during an earnings call. The report revealed a revenue of NT$11.651 billion for the third quarter. However, the company faced a setback with a loss of NT$489 million from its Miaoli Tongluo plant, resulting in an expanded loss per share of NT$0.69, an increase compared to the previous two quarters. Despite this, the cumulative loss per share for the first three quarters stands at NT$1.27, while revenue demonstrates slight growth and maintains a solid financial structure.

PSMC's customer base is predominantly in Taiwan, accounting for 58%, followed by 24% in other Asian regions and 18% in Europe and North America. Demand for Power Management Integrated Circuits (PMICs) has seen significant growth, although demand for logic products has decreased. The company also noted a rise in memory foundry services, with DRAM and flash memory demand exhibiting fluctuations. PSMC projects its capital expenditure for the year to be between US$855 million and US$900 million, primarily directed towards expanding capacity at the Tongluo plant.

In response to the increasing competition from mature processes in mainland China, Powerchip has observed an accelerated trend of non-mainland clients seeking its foundry services, evidenced by the rise in PMIC demand during Q3. While the automotive IC market requires further adjustment and the consumer electronics sector experiences a seasonal slowdown, PSMC remains optimistic about recovering demand in both the mature process and automotive IC markets.

To support its technological advancements, PSMC will continue to invest in capital expenditure, particularly in 2.5D and 3D AI product lines, to enhance competitiveness and explore new markets. Additionally, the company has committed NT$2 billion to aggressively develop AI storage products, capitalizing on the rapid growth opportunities in the AI sector.