Powerchip Semiconductor Manufacturing (6770) Q1 2025 earnings summary

Executive summary

• Q1 consolidated financials for the three months ended March 31, 2025 and 2024, reviewed by independent auditors with no material misstatements found.

• Q1 revenue reached NT$11.12 billion, flat quarter-over-quarter and up 2.7% year-over-year, with improved gross margin and reduced net loss compared to the previous quarter.

• Product mix shifted toward PMIC, now accounting for nearly 40% of revenue, while memory's share declined due to weak DRAM pricing.

• Strategic transformation continues, focusing on logic, advanced packaging (2.5D/3D), and international expansion, notably in India.

• Company operates in semiconductor manufacturing, with shares listed on TWSE and GDRs on Luxembourg Stock Exchange.

Financial highlights

• Operating revenue was NT$11,116,476 thousand, up 2.7% year-over-year from NT$10,820,046 thousand.

• Gross margin improved to -5% from -11% last quarter, but turned negative year-over-year at -4.8% versus 15.4% in Q1 2024.

• Net loss was NT$1.1 billion (NT$0.26 loss per share), narrowed quarter-over-quarter but widened year-over-year.

• Cash and cash equivalents at period end were NT$23.2 billion, up from NT$18.36 billion at year-end 2024.

• Operating expenses increased to NT$2,092,437 thousand from NT$1,770,364 thousand year-over-year.

Outlook and guidance

• Q2 outlook is cautious due to tariff policy uncertainty, with short visibility; Q2 performance expected to sustain Q1 momentum barring major policy changes.

• PMIC and power devices expected to reach 40% of revenue in 2024, with a long-term goal of 60%.

• 3D stacking (Wafer on Wafer) to begin contributing revenue in 2025, with POC sample revenue already recognized.

• Company is assessing the impact of new IFRS standards effective from 2026 and will disclose impacts when assessment is complete.