Powerchip Innovation Holding, formerly Powerchip Technology, said on Oct. 27 that it would launch the first batch of a treasury share repurchase plan, with up to NT$1 billion allocated to buy shares from all shareholders at NT$30 to NT$55 per share. The company said the shares are intended for transfer to employees. Market response was swift, and applications reached the planned cap within days.
First batch closed after applications hit the limit
In a supplemental announcement on Nov. 2, Powerchip said the first batch had already reached the company’s planned amount, and it would immediately suspend acceptance of shareholder applications to sell shares back to the company. It added that shareholders who submitted documents between Oct. 27 and Oct. 30 will be handled first for confirmation and settlement, with the final settlement price set at NT$42 per share.
After the first batch is completed and the actual amount used is confirmed, the company said it will announce a later-stage repurchase plan if any of the NT$1 billion authorization remains unused.
Processing schedule for shareholders who already filed
Unlike listed companies that can buy shares directly through exchange matching, Powerchip is currently an unlisted public company. Under that status, it must notify all shareholders and accept voluntary applications from those willing to sell their shares back.
For shareholders who successfully filed between Oct. 27 and Oct. 30, the transfer and payment schedule will proceed as originally planned:
- By Nov. 6, year 115: complete and confirm the list of eligible shareholders in the first batch.
- Nov. 9, year 115: the shareholder services agent, Capital Securities, will send transfer-related documents by registered mail.
- Nov. 10 to Nov. 16, year 115: after receiving the documents, shareholders must pay securities transaction tax and complete the share transfer within the deadline.
- Nov. 20, year 115: sale proceeds will be remitted to the shareholder’s designated financial institution account.
For inquiries, shareholders who filed in the first batch from Oct. 27 to Oct. 30 can contact Capital Securities at (02) 2702-3999 to confirm application status and settlement progress. Those who did not make the first batch can contact Powerchip at (02) 2517-7768 for information on later buyback rounds and any remaining quota. Service hours are Monday through Friday, 09:00 to 16:30.
From delisting to restructuring
The buyback has also renewed attention on Powerchip’s long path through Taiwan’s capital markets. At the end of 2012, Powerchip Technology, then focused on DRAM manufacturing, was hit by a downturn in the global memory industry and the fallout from the financial crisis. The company carried debt of NT$120 billion, its net asset value per share fell below zero, and it was delisted from the Taipei Exchange. About 270,000 investors were left holding shares that the market derisively called "wallpaper."
Powerchip did not enter liquidation. Under founder Frank Huang, the company shifted toward foundry manufacturing, gradually returned to profit through specialty processes and contract orders, and over time repaid its large debt burden. The group later carried out a restructuring and business split. In 2019, subsidiary Powerchip Semiconductor Manufacturing Corp. increased capital and acquired the parent company’s 12-inch wafer fabs and operating assets. In December 2021, PSMC was listed on the Taiwan Stock Exchange. The original parent company was renamed Powerchip Innovation Holding and repositioned as an investment holding company focused on PSMC shares and other forward-looking technology sectors.
Buyback offers another exit route for legacy shareholders
Powerchip had already taken steps in 2020 to address the interests of long-term shareholders through a capital reduction and share swap arrangement. Under that plan, the parent company carried out an asset-based capital reduction of about 60.8%, returning PSMC shares rather than cash. On that basis, a shareholder holding 1,000 shares of Powerchip would receive about 608 listed PSMC shares and retain about 392 shares of Powerchip Innovation Holding.
After PSMC listed at the end of 2021, those 608 shares became freely tradable on the centralized market, giving legacy shareholders a first route to cash out. The remaining 39.2% stake in Powerchip Innovation Holding, however, stayed outside the centralized market because the company is not listed there. Shareholders seeking liquidity had largely been limited to off-market dealers, where liquidity was weaker and information was less transparent.
With this NT$1 billion treasury share program and a confirmed settlement price of NT$42 per share, Powerchip is now providing a company-run, price-transparent and compliant channel for those shareholders to sell part of their holdings.
