Substantial quarterly deficits reported by Powerchip, exceeding NT$3.3 billion.
Powerchip Semiconductor Manufacturing Corp (PSMC) is poised for expansion in the Gallium Nitride (GaN) semiconductor market, following Taiwan Semiconductor Manufacturing Co's (TSMC) exit from the industry. This shift includes taking over TSMC's largest GaN customer, Navitas Semiconductor, and leveraging PSMC's cost-effective GaN-on-Silicon technology.
However, specific details about PSMC's Q3 financial losses are not available at this time. The company is planning to increase its silicon interposer capacity by NT$2.65 billion, with the aim of contributing about 8 percent of its total revenue, up from the 2 percent contribution in the previous quarter.
The strong local currency, the New Taiwan dollar, appreciated about 4.89% to NT$31.2 against the US dollar last quarter, leading to impairment losses of NT$1.59 billion on PSMC's US dollar-denominated assets. This negatively affected the company's gross margin, resulting in a bigger gross loss of NT$1.02 billion last quarter.
Despite the losses, the company posted deeper quarterly losses of NT$3.33 billion for Q2 2022, with losses per share expanding to NT$0.8 last quarter, compared to NT$0.26 a quarter earlier and NT$0.54 a year ago.
Capital expenditure this year for Powerchip is planned to be US$454 million. The company is also expecting the momentum from the increased demand to carry over into the second half of 2022.
In addition, demand is increasing for silicon interposers used in advanced Chip-on-Wafer-on-Substrate packaging technology for artificial intelligence chip manufacturing processes. However, customers are becoming more prudent about placing new orders for Q3 2022, due to uncertainties in the market.
Front-loading demand for logic chips is cooling down ahead of a US tariffs deadline on Friday next week. Meanwhile, Powerchip is experiencing an increase in new orders for memory chips.
Regarding silicon interposers, no information is available on Powerchip’s plans or production based on the search results. Further details on Powerchip’s earnings or losses for Q3 or silicon interposers plans are not covered in the available sources as of July 2025.
In the context of Powerchip Semiconductor Manufacturing Corp's (PSMC) strategic moves, the company is seeking to capitalize on the exit of Taiwan Semiconductor Manufacturing Co (TSMC) from the GaN semiconductor industry by taking over TSMC's largest GaN customer, Navitas Semiconductor. Furthermore, PSMC plans to leverage its cost-effective GaN-on-Silicon technology in the finance sector, potentially attracting investments from entities interested in the intersection of technology and finance.
