Powerchip Semiconductor's July revenue hits record high amid rising chip prices

Memory chip maker Powerchip Semiconductor (2344) announced robust July revenues, reaching NT$26.77 billion. This figure represents a significant monthly increase of 29.98% and a substantial year-on-year surge of 291.55%, setting a new record for the company. The strong performance is largely driven by the ongoing rise in memory chip prices.

For the first seven months of the year, Powerchip's cumulative revenue stands at NT$124.87 billion, marking a 160.97% increase compared to the same period last year. General Manager Chen Pei-ming expressed optimism for the third quarter, predicting that memory chip prices will continue to climb. While he does not expect price increases to reach the previous levels of doubling, he anticipates a favorable market.

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should not be too bad

Chen also highlighted the growing demand for memory chips fueled by artificial intelligence applications. He forecasts a widening gap between supply and demand by 2027, making it increasingly difficult to meet market needs. This anticipated shortage has led many customers to express interest in signing long-term contracts that would secure capacity through 2030, indicating strong forward demand.

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the memory demand gap will be harder to satisfy