PSMC says Q3 gross margin reached 47.6% as price hikes lifted core earnings

Powerchip Semiconductor Manufacturing Corp. (PSMC, 6770) reported self-prepared consolidated results for the third quarter on Oct. 21, posting revenue of NT$21.34 billion, gross profit of NT$10.15 billion, net profit of NT$6.50 billion, and earnings per share of NT$1.38. Based on the disclosed figures, gross margin was about 47.6%. At its third-quarter earnings conference on the same day, President Chu Hsien-kuo said the effect of higher prices is being reflected gradually, and the company expects another quarter of double-digit revenue growth in Q4. He also said PSMC is targeting another 10% to 20% increase in foundry pricing in 2027. The quarter marked the first earnings release since Chairman Frank Huang died on July 31. The company’s profitability mix also shifted during the year: in the first quarter, net profit was supported mainly by non-operating items, while in the third quarter, operating gross profit became the main earnings driver. PSMC also discussed capacity constraints, possible new factory research in Taiwan, Singapore, and Japan, and a plan to have customers share 30% to 60% of new capacity investment through equipment leasing or prepayments.