Huang Chorng-ren: Powerchip Leads in Wafer-on-Wafer Stacking and Silicon Capacitors, Will Pay Dividends Next Year

(Taiwan News Reporter Chang Chien-chung, Hsinchu, July 14) Powerchip Semiconductor Manufacturing Corporation (PSMC) Chairman Huang Chorng-ren stated today that the company holds a leading position in wafer-on-wafer (WoW) stacking, silicon interposers, and silicon capacitors. He expressed optimism about solid profitability in 2024 and confirmed that the company will distribute dividends to shareholders in 2025, with the exact amount subject to operational results.

PSMC held an online investor conference this afternoon to announce its Q2 financial results. Benefiting from higher average selling prices and a slight increase in shipment volume, PSMC’s Q2 revenue rose to NT$17.291 billion, up 27% quarter-on-quarter. Gross margin improved by 18 percentage points to 28%, while net profit after tax reached NT$3.291 billion, with earnings per share (EPS) at NT$0.76.

For the first half of 2024, PSMC achieved revenue of NT$97.593 billion, a 40% year-on-year increase. Gross margin stood at 20%, with net profit after tax at NT$17.522 billion and EPS at NT$4.08. The company’s full-year capital expenditure is projected at approximately US$488 million.

Huang detailed PSMC’s transformation progress, noting that the company has invested six years in developing WoW stacking technology, achieving over 90% yield for 8-layer stacking. PSMC also leads in silicon interposers and silicon capacitors, having passed Intel’s EMIB certification. Additionally, its power management chips and gallium nitride (GaN) devices have indirectly entered NVIDIA’s supply chain.

Huang emphasized that PSMC can mass-produce memory products from low-end to high-end tiers, with product value comparable to mainstream market offerings. The company anticipates strong profitability in 2024 and plans to distribute dividends in 2025, though the exact dividend amount will depend on actual operational outcomes.

PSMC General Manager Chu Hsien-kuo stated that the DRAM supply gap is expected to persist until 2027, with prices continuing to rise. Memory-related revenue accounted for over 50% of total revenue in Q2. With a 45% increase in wafer input pricing effective in July and output expected in November, memory revenue and profitability will further improve, increasing memory’s revenue share.

Regarding logic foundry operations, Chu noted ongoing capacity shortages, with demand-to-capacity ratio at 1.4x in Q3. Foundry pricing for both 8-inch and 12-inch wafers will increase by 10% to 15% starting in July.

For 3D AI foundry services, PSMC offers 8-inch and 12-inch silicon capacitors. The company plans to achieve over 10,000 wafers per month in 12-inch silicon capacitor capacity by 2027, with 8-inch capacity reaching several thousand wafers.

On the PWF collaboration with Micron, Chu stated that the pilot line is expected to be completed by the end of 2024, with mass production scheduled for Q4 2027.

Chu added that July’s revenue growth will be slightly moderated due to large-scale equipment relocation from the Tongluo plant to Hsinchu and annual maintenance at the Hsinchu facility. However, with foundry price increases taking effect, operations are expected to resume strong growth momentum from August onward, reaching peak annual performance by the end of 2026. (Editor: Chang Liang-chih) 1150714