PSMC: Price Hike Benefits Expected to Show in June; Operations to Improve Over Next 2 Years

Powerchip Semiconductor Manufacturing Corp. (PSMC) held its general shareholders' meeting today, where shareholders expressed interest in the company's future operational outlook. Chu Hsien-kuo stated that the transfer of the Tongluo plant's property rights to Micron was completed in March, and even with the burden of the Tongluo plant, the core business still successfully turned a profit in the first quarter.

Chu Hsien-kuo indicated that the company began raising foundry prices in the first quarter, setting prices at the time of wafer starts. These wafers are expected to be produced in June, which is anticipated to drive June's revenue upwards, and revenue in the second half of the year should see substantial growth.

Chu Hsien-kuo said that new memory production capacity is coming online slowly, and the current pace of memory price increases is even more intense than during the pandemic. The memory market outlook remains highly positive through next year. The benefits of the partnership with Micron will gradually manifest in one and a half to two years, and it is expected that operations will only get better over the next two years. (Editor: Chang Chun-mao) 1150410