[News] PSMC Q3 Gross Margin Hits 48% on Memory Price Gains; Eyes 10–20% Mature-Node Price Hikes in 2027

What happened

PSMC's third-quarter revenue rose 23% sequentially and 80% annually to NT$21.3 billion, while net profit surged 98% and 338%, respectively, to NT$6.5 billion, with gross margin climbing 20 percentage points to 48%, driven by rising memory prices and tight foundry capacity. According to Liberty Times, PSMC President Martin Chu expects fourth-quarter revenue to grow by double digits sequentially as ASPs continue to rise; in the third quarter, completed memory wafers had ASPs more than 30% below those entering production during the same period, meaning recent price increases have yet to be fully reflected in revenue, with higher-priced wafers expected to contribute more in the fourth quarter. According to TechNews, global DRAM supply remains tight as major manufacturers shift capacity toward HBM and gradually exit specialty DRAM, keeping PSMC's specialty DRAM foundry prices elevated; PSMC is advancing its 1p DRAM collaboration with Micron, with a PDK due by the end of 2026, equipment arriving in 1Q27, and trial production starting in 2Q27. PSMC notes tight MLC NAND supply is driving demand for high-capacity SLC NAND, with the company shifting its SLC foundry platform to 24nm; AI servers require three to five times as much NOR Flash per system as conventional servers, and PSMC is the only NOR Flash foundry outside China. According to PSMC's earnings presentation, wafer input ASPs for its 8-inch and 12-inch logic foundry services rose 8–10% in the third quarter; with capacity constraints persisting, the company plans further price hikes of 10–20% in 2027 and is negotiating long-term agreements (LTAs) to secure pricing and volumes. PSMC has begun shipping 55nm BCD products with customers seeking three-year contracts; fully utilized 2026 foundry capacity is squeezing smartphone PMIC production, prompting major handset makers to seek 2027 capacity; 80% of 2027 MOSFET and IGBT capacity is already covered by LTAs; GaN products have entered small-volume wafer production pending final customer validation. IPD order visibility extends into 2028 with mass production underway on 8-inch and 12-inch wafers; WoW hybrid bonding small-scale trial production is underway with mass production targeted for 1H27. The Micron PWF project remains on schedule, with pilot line construction expected to finish by the end of 2026 and mass production planned for 4Q27.

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Source: TrendForce · 10/21/2026 · View original source