Starting this month, PSMC raises contract manufacturing prices for memory by 45%.

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Powerchip Semiconductor announced a significant increase in contract manufacturing prices for memory and accelerated its transformation towards an "AI Foundry," marking the Taiwanese wafer foundry's effort to reposition itself amid the artificial intelligence boom.

At the investor conference on July 14, General Manager Zhu Xianguo revealed that starting this month, the company will raise memory contract manufacturing prices by 45%, with production expected in November, which will further contribute to revenue and profits, and boost the proportion of storage business in overall revenue. Chairman Huang Chongren made it clear that Powerchip is no longer a traditional wafer foundry, nor simply a DRAM manufacturer, but is fully transitioning into an "AI Foundry."

This price increase coincides with an upward cycle in the memory market, combined with the company's diverse layout in advanced packaging, DRAM, and flash memory fields. The market expects related businesses to become a key driving force for the company’s performance growth in the coming years.

Memory contract manufacturing price hike, revenue contribution expected in November

Zhu Xianguo disclosed at the conference that Powerchip is raising memory contract manufacturing prices by 45% starting this month, with related production expected in November, which will be directly reflected in revenue and profits and push up the proportion of the storage business in total revenue.

On the DRAM technology front, Powerchip’s self-developed OneX DRAM process entered small-scale production in June and is currently advancing yield improvement and customer verification. The OneP process, developed in collaboration with Micron, is scheduled to have equipment installed in the first quarter of next year, targeting mass production by mid-2028, gradually advancing DRAM technology to more advanced nodes.

In terms of flash memory products, SLC NAND market prices continue to rise, driven by demand for AI servers and AI terminal equipment. NOR Flash has also welcomed growth opportunities thanks to adjustments in the supply structure. Zhu Xianguo revealed that Powerchip’s current NOR Flash monthly wafer input has surpassed 10,000, and orders continue to expand, with related products gradually moving to more competitive 20nm processes and next-generation products.

Advancing multiple lines in advanced packaging, building up the AI supply chain

Huang Chongren emphasized that as AI computing power demand expands rapidly, the advanced packaging market continues to heat up. In recent years, Powerchip has actively laid out advanced process platforms including silicon capacitor (IPD), silicon interposer, Wafer-on-Wafer (WoW), and PWF, aiming to provide a complete AI chip manufacturing solution.

Currently, 12-inch silicon wafer products have obtained international CPU giant EMIB technical certification and begun mass production shipments. WoW technology has years of mass production experience, with yield and technical maturity standing at industry-leading levels, and future plans call for further expansion into AI servers, optical communication, and AI terminal equipment.

For Interposer, Powerchip has started accepting part of the market overflow demand; WoW has completed verification for several clients; the PWF pilot line is set to be built by the end of this year, with mass production targeted for Q4 2027, potentially becoming an important growth engine for the company's performance over the coming years.

AI Foundry aims to reach 20% revenue share within three years

Huang Chongren pointed out that Powerchip’s greatest competitive advantage lies in having storage contract manufacturing, logic contract manufacturing, and advanced packaging capabilities all at once, offering a complete manufacturing platform according to customer needs—distinct from wafer foundries that focus only on a single business.

In terms of product portfolio optimization, the company plans to further increase the share of AI and automotive chip businesses, while upgrading and integrating production lines and equipment at the Hsinchu plant, and laying out new technologies such as silicon photonics (CPO), infrared sensing, and power devices to further expand its coverage in the AI supply chain.

Huang Chongren stated that 3D AI Foundry-related businesses currently account for about 5% of the company’s revenue, with a goal to raise it to 20% within three years, becoming a core pillar for the company’s long-term growth and seizing long-term opportunities in the AI semiconductor market.

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