Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) is negotiating price increases of between 10% and 20% with its customers for 2027 on its mature-node chip manufacturing services, after already raising wafer prices this year. The company explained this on October 21, 2026, during its third-quarter earnings presentation, in which net profit nearly doubled amid the memory and manufacturing-capacity shortage driven by AI.
PSMC’s price hikes in 30 seconds
- PSMC is negotiating hikes of between 10% and 20% for 2027 in logic chip manufacturing.
- In the third quarter, it already raised prices for logic wafers entering production by 8% to 10%.
- Its quarterly net profit nearly doubled, to NT$6.5 billion, and its gross margin reached 48%.
- A shortage of mature memory, driven by major manufacturers’ shift toward HBM, is keeping prices elevated.
PSMC, also known as Powerchip, manufactures logic and memory chips on mature processes — those that aren’t at the technological cutting edge but underpin much of electronics: power-management chips, controllers, specialized memories, and power semiconductors. AI demand has reached this segment too, and the company is prioritizing customers who sign long-term supply agreements with fixed volumes and prices.
Prices Climbing in Both Logic and Memory
According to TrendForce, which cites the company’s earnings presentation, the average price of 8-inch and 12-inch logic wafers that entered production in the third quarter rose between 8% and 10%. For 2027, PSMC is planning additional increases of between 10% and 20% and is closing long-term agreements with its customers. The Taipei Times reports that the company is negotiating that 10%-20% range for next year and notes even larger quarterly increases — 23% in the third quarter and a projected 30% in the fourth — though it doesn’t specify which products those figures refer to. Both reports agree on the 2027 range.
The pressure is even greater in memory. Martin Chu, PSMC’s president, explained that memory wafers completed in the third quarter were priced more than 30% lower than the wafers that entered production that same quarter, because the company sets the price when manufacturing begins. That means part of the increases hasn’t shown up in revenue yet. Chu attributed the shortage to major memory makers shifting capacity toward HBM and abandoning mature DRAM, and said manufacturing prices for specialized DRAM show no sign of coming down.
Profit Nearly Doubles, New Lines for AI
Third-quarter revenue reached NT$21.3 billion, up 23% from the previous quarter and 80% year over year. Net profit reached NT$6.5 billion, compared with NT$3.29 billion in the prior quarter and a loss of NT$2.73 billion a year earlier, with earnings per share of NT$1.38. Gross margin rose from 28% to 48%. For the fourth quarter, PSMC expects double-digit revenue growth. Chu was very optimistic about 2027 revenue and profitability, provided AI momentum holds.
The company is also expanding AI-related business lines. It manufactures integrated passive devices (IPD) for advanced packaging, with orders booked through 2028, and expects demand to reach 50,000 wafers a month in the second half of 2027, up from current capacity of 10,000. It has begun testing hybrid wafer bonding, with volume production expected in the first half of 2027, and is working with Micron on a DRAM project and another on wafer finishing. CloudNews previously reported that PSMC achieved Intel’s EMIB certification for its silicon capacitors and that Micron acquired PSMC’s P5 plant in Taiwan.
To limit investment risk, PSMC wants to finance between 30% and 60% of its new lines through leases or customer prepayments, and is studying a small advanced-packaging plant in Taiwan, Japan, or Singapore within the next three to five years. PSMC’s increases come as other foundries also raise their prices: TSMC is preparing its first mature-node hike in more than three years, starting in January 2027, according to Taiwanese press cited by TrendForce.
Frequently Asked Questions
How much will PSMC raise its prices in 2027?
The company is negotiating increases of between 10% and 20% with its customers for its logic chip manufacturing services.
Why are mature-node prices rising?
Because of AI-driven demand, and because major memory makers are shifting capacity toward HBM and abandoning mature DRAM.
What were PSMC’s third-quarter 2026 results?
Revenue of NT$21.3 billion, net profit of NT$6.5 billion, and a gross margin of 48%.
What is PSMC?
Powerchip Semiconductor Manufacturing Corp. is a Taiwanese manufacturer of logic and memory chips on mature processes.
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