Powertech Technology has approved two large capital decisions at the same Aug. 7 board meeting: a $400 million investment tied to a joint venture with Broadcom in Singapore, and a treasury-share buyback plan worth as much as NT$3.5 billion.
According to ABMedia, the packaging and testing company is pushing ahead on two fronts at once — overseas expansion on one side, and stock support plus employee retention on the other. The report focused on where Powertech’s financial confidence comes from and whether the scale of the spending could tighten cash flow.
Buyback plan targets 10,000 lots at NT$250 to NT$350
Under the board resolution, Powertech plans to repurchase 10,000 lots of shares between Aug. 10 and Sept. 30. The approved price range is NT$250 to NT$350. Based on the upper end of that range, the company has prepared as much as NT$3.5 billion in cash for the program.
As of Sept. 15, Powertech had already bought back 7,952 lots, putting the program close to 80% complete. ABMedia said the company had recently purchased shares in the market at average prices of NT$265, NT$283, and NT$272.
The report also noted that after foreign institutions including UBS gave the stock a conservative target price of NT$260, Powertech’s board set the repurchase range at NT$250 to NT$350 and added a clause stating that purchases would continue even if the stock fell below the lower end.
Shares are reserved for employees
Company disclosures show that the sole legal use of the 10,000 lots of treasury shares is transfer to employees. Powertech also set a rule that any future transfer price cannot be lower than the average repurchase price actually paid by the company.
ABMedia said this structure ties potential gains for employees to the company’s future share performance, since the stock would need to trade above the company’s repurchase cost for those shares to generate a profit for recipients. The report framed the plan as a way to lock in key technical talent as Powertech prepares for more advanced packaging work.
$400 million Singapore venture with Broadcom
At the same Aug. 7 board meeting, Powertech approved the creation of XCIP TECHNOLOGIES PTE. LTD. in Singapore with Broadcom. The total investment is set at $400 million, roughly NT$12.8 billion, and Powertech will hold a 30% stake.
ABMedia said the investment is based on international expansion and proximity to global customers. In the report’s description, the move marks Powertech’s entry into higher-end panel-level advanced packaging. Building that business abroad would require a strong engineering and R&D team, which is one reason the employee-focused buyback plan was approved at the same time.
Cash-flow questions and the figures cited in the report
Because Powertech announced an overseas investment of about NT$12.8 billion and a buyback plan of up to NT$3.5 billion at the same time, market attention quickly turned to whether cash flow could come under pressure and whether future dividends might be affected.
ABMedia cited three points from company filings and financial statements:
- The $400 million investment in the Singapore joint venture will not be paid in one lump sum. The agreement allows capital injections in stages, tied to plant construction and project progress.
- Powertech posted first-half EPS of NT$5.5, helped by AI-related demand, and its August consolidated revenue reached a record NT$8.56 billion.
- At the end of the second quarter, the company held NT$17.6 billion in cash and cash equivalents, while total working capital stood at NT$22.7 billion. The board said the NT$3.5 billion maximum buyback budget represented only 7.4% of consolidated current assets.
Share price pulled back from a 2026 high
The report said Powertech shares had climbed to a record NT$387 at the end of May 2026 during the AI-driven rally. The stock later retreated as global semiconductor concerns and broader market volatility weighed on trading.
By mid-September, the share price was moving around NT$268 to NT$275, close to the lower end of the company’s buyback range.
Taken together, the board resolutions show Powertech using $400 million to deepen ties with a global chip company in Singapore while also spending up to NT$3.5 billion to repurchase stock for employee transfers. ABMedia described the package as serving three goals at once: supporting the stock, retaining talent, and preparing for the next phase of advanced packaging expansion.