PSMC

力積電

A Taiwan-based foundry transitioning from mature-node logic and specialty memory to 3D wafer stacking, silicon interposers, and passive components for AI infrastructure.

TWSE: 6770
Profile as of September 13, 2026
#97 in the AsiaAI Tech Index
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PSMC is repositioning from a cyclical memory and mature-node foundry operator toward specialty 3D integration for AI infrastructure. The strategy has technical logic, but the revenue base remains small compared with its legacy businesses and TSMC's advanced-packaging ecosystem.

Key figures

Revenue FY2025: NT$46.730 billion
Revenue growth FY2025: 4.5%
Operating margin FY2025: Negative 12.8%
Net income FY2025: NT$ negative 7.813 billion
R&D spend FY2025: NT$5.257 billion (11.2% of revenue)
Capital expenditure: Not disclosed
Market capitalization 2026-09-11: NT$346.340 billion Estimate
3D AI Foundry share of revenue Q2 2026: 5.4%
P5 Tongluo fab transaction value 2026: US$1.8 billion
Granted patents 2025: 180

Overview

PSMC operates three 12-inch and two 8-inch wafer fabs, focusing on mature-node logic, specialty DRAM, and semiconductor manufacturing services. Originally named Maxchip Electronics Corporation, it rebranded in 2018 and operates as a subsidiary of the Powerchip Group.

The company is currently executing a strategic transition to reduce its exposure to cyclical commodity memory and mature-node oversupply. A central part of this transition is the US$1.8 billion sale of its P5 Tongluo fabrication site to Micron, which provides capital and streamlines its manufacturing footprint.

PSMC's competitive distinction is not leading-edge logic but the combination of specialty-memory process experience and mature-node foundry capacity. It is attempting to commercialize wafer-on-wafer structures, silicon interposers, silicon capacitors, and 3D AI DRAM-related manufacturing, targeting the packaging and memory-interconnect requirements of AI accelerators and servers.

The AI angle

PSMC's AI linkage is direct but still early in revenue terms. Its direct AI supply is concentrated in silicon interposers, integrated passive devices, silicon capacitors, 3D wafer-on-wafer stacking, and prospective 3D AI DRAM manufacturing. These products support the packaging and memory-interconnect requirements of AI accelerators and AI servers rather than supplying leading-edge GPU compute dies.

The company publicly identifies Wafer-on-Wafer, silicon interposers, Si-Capacitors, integrated passive devices, power-management ICs, gallium-nitride devices, and MOSFET power components as its targeted AI-supply-chain products. It also previously demonstrated the AIM-200 3D AI accelerator platform, combining PSMC 40-nanometer logic and 25-nanometer DRAM wafers through wafer stacking. Named end customers for the AI products are mostly not disclosed, though Intel is identified in press reporting as having certified PSMC silicon capacitors for its EMIB packaging technology.

Press reporting based on PSMC investor materials states that the 3D AI Foundry business accounted for 3.2% of first-quarter 2026 revenue and 5.4% of second-quarter 2026 revenue. This is a small but growing contribution, while the company remains materially exposed to mature-node foundry and memory cycles.

Technology and moat

PSMC's competitive distinction relies on the combination of specialty-memory process experience, mature-node foundry capacity, and wafer-level integration. Its 40-nanometer logic and 25-nanometer DRAM demonstration established a practical internal technology base for 3D stacking, although this is materially behind the leading logic nodes used for high-end AI GPU and ASIC compute dies.

The company reports four-layer and eight-layer wafer-on-wafer configurations. Press reporting based on company investor materials says a four-layer product cleared certification with an advanced-process customer and that eight-layer trial output exceeded 90% yield.

The difficult-to-copy elements are qualified manufacturing processes, accumulated memory know-how, customer process certification, and installed fabrication infrastructure. These are real barriers, but they do not create the ecosystem lock-in or capacity scale that protects TSMC's advanced-node and advanced-packaging franchise.

Five-pillar assessment

Scale and market position: Operates three 12-inch and two 8-inch fabs, competing in mature-node and specialty foundry markets with a small but growing 3D AI foundry segment.
Technology and R&D: Leverages specialty-memory process experience and mature-node capacity to develop wafer-on-wafer structures, silicon interposers, and silicon capacitors, though it trails leading-edge logic nodes.
Supply-chain centrality: Strategic relationship with Micron for the P5 fab transaction and memory manufacturing, alongside reported silicon capacitor certification by Intel.
Financial momentum: Revenue is recovering modestly, but operating margins and net income remain negative due to legacy foundry and memory business pressures.
Governance and quality: A publicly listed subsidiary of Powerchip Group with professional management, independent directors, and standard Taiwan regulatory compliance.

Supply chain and relationships

PSMC relies on capital equipment, specialty materials, wafer-processing chemicals, semiconductor process equipment, packaging tools, and IP licences. Specific equipment and materials suppliers are not disclosed. Its ability to supply interposers and 3D stacking also depends on customers qualifying its processes within advanced packaging supply chains that are still led by TSMC and its ecosystem.

Named end customers for the AI products are mostly not disclosed. Intel is identified in press reporting as having certified PSMC silicon capacitors for its EMIB packaging technology. Micron is PSMC's named strategic counterparty in the P5 Tongluo fab transaction and is also associated with PSMC's memory-oriented wafer manufacturing relationship.

Customers

Micron TechnologyStrategic relationship connected to memory and wafer manufacturing
IntelReportedly certifies PSMC silicon capacitors for EMIB packaging

Partners

Micron TechnologyAcquiring PSMC's P5 Tongluo site for US$1.8 billion
Industrial Technology Research InstituteCollaborates on the AIM-200 3D AI accelerator platform
Smart MemoryParticipates in the AIM-200 3D AI accelerator platform
MaxramParticipates in the AIM-200 3D AI accelerator platform

Competitors

TSMCInferredCompetes in Taiwan foundry and advanced-packaging supply
UMCInferredCompetes in mature-node and specialty foundry markets
Vanguard International SemiconductorInferredCompetes in specialty and mature-node foundry markets
SMICInferredCompetes in mature-node foundry production

Geopolitics and risk

PSMC's production base is concentrated in Taiwan, exposing it to cross-strait escalation, shipping disruption, earthquakes, and power constraints. A blockade or military escalation would directly interrupt wafer output and customer deliveries.

The company also faces exposure to United States export controls, which restrict exports of certain advanced semiconductor equipment and support for advanced Chinese chip facilities. While PSMC's current mature-node footprint reduces direct exposure, equipment access, Chinese demand, and customer compliance remain relevant. Furthermore, China is a major semiconductor demand center and a location where mature-node capacity is expanding rapidly, creating both customer-access risk and price competition.

Risk matrix
Risk	Severity	Why it matters
Taiwan Strait disruption	High	Production base is concentrated in Taiwan, exposing it to blockade or military escalation.
Mature-node oversupply	High	Exposed to mature-node logic and memory cycles where China capacity expansion pressures pricing.
AI revenue concentration risk	High	3D AI Foundry business is growing but remains a small share of reported quarterly revenue.
TSMC packaging competition	High	TSMC controls the strategic high-volume advanced-packaging ecosystem for leading AI accelerators.
Export-control exposure	Medium	U.S. controls restrict exports of certain advanced semiconductor equipment.
China market and customer risk	Medium	China mature-node capacity is expanding rapidly, creating price competition.
Equipment and material dependence	Medium	Requires continued access to advanced fabrication and packaging equipment.
P5 transition execution	Medium	Sale of Tongluo site requires reallocation of production across remaining facilities.

Governance and ownership

PSMC is a Taiwan-listed company within the Powerchip Group, described as a subsidiary of Powerchip Technology Corporation. It is not state-owned, and its ownership structure is linked to Powerchip Technology Corporation and affiliated institutional shareholders.

The board includes three employee directors and six independent directors. Frank Huang serves as chairman and CEO, with Brian Shieh as vice chairman. The company follows Taiwan's Company Act and Securities and Exchange Act, with annual financial statements audited by certified public accountants.

What to watch

Whether PSMC's 3D AI Foundry revenue share rises beyond the 5.4% reported for second-quarter 2026.
Whether four-layer wafer-on-wafer products move into sustained volume production and eight-layer yields remain above 90%.
Whether PSMC discloses revenue, utilization, or named customers for interposers, silicon capacitors, and 3D AI DRAM.
Whether the P5 sale proceeds improve balance-sheet flexibility and remaining fabs achieve stronger utilization.
Whether Micron's Tongluo ramp produces new PSMC-linked wafer-manufacturing or packaging work.
Whether mature-node foundry pricing improves as non-China sourcing demand develops.

Recent developments

July 14, 2026Investor-material reporting indicates that PSMC's 3D AI Foundry business reaches 5.4% of second-quarter revenue.
March 16, 2026Announces completion of the US$1.8 billion Tongluo P5 transaction with Micron.
February 24, 2026Releases FY2025 fourth-quarter results, reporting FY2025 revenue of NT$46.730 billion and a net loss of NT$7.813 billion.
January 21, 2026Announces a DRAM process-advancement plan aimed at higher-capacity DRAM and stronger wafer-on-wafer services.
January 17, 2026Signs an exclusive letter of intent to sell its P5 Tongluo fabrication site to Micron for US$1.8 billion in cash.
May 12, 2025Presents 3D AI semiconductor solutions around large-language-model inference and image recognition before Computex 2025.

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About this profile

Compiled with AI-assisted research from company filings, market data, and published reporting as of September 13, 2026, then reviewed by AsiaAI.FYI. Figures marked Estimate are not company-reported. Check primary filings before relying on any number.

Confidence: B. Financial data are supported by company financial releases and market data, but capital expenditure, audited annual-report detail, customer concentration, and segment detail remain weak.

Main sources: PSMC financial releases and monthly-revenue disclosures; PSMC corporate-governance disclosures; PSMC ESG disclosures; PSMC press releases; Taiwan market-data sources; Trade press.

All 79 sources

Position in the AI stack

Supplies specialty foundry, stacked-wafer, interposer, silicon-capacitor, and power-device technologies that support AI accelerator packaging and memory integration.

Legal name: Powerchip Semiconductor Manufacturing Corporation
Formerly: Maxchip Electronics Corporation
Headquarters: Hsinchu City, Taiwan
Founded: 2008
Leadership: Frank Huang, Chairman and Chief Executive Officer
Brian Shieh, Vice Chairman
Employees: 8,361
Ownership: Publicly listed; part of Powerchip Technology Corporation / Powerchip Group
Listings: TWSE: 6770
Business: Mature-node logic, specialty DRAM, and 3D AI foundry services
Sector: Foundry & Chip Manufacturing
Website: powerchip.com