Powerchip Semiconductor Manufacturing Corp. Memory foundry pricing to drive strong GM uptick, new avenues for memory and logic growth; upgrade to OW

Research evidence excerpt

Powerchip Semiconductor Manufacturing Corp. Memory foundry pricing to drive strong GM uptick, new avenues for memory and logic growth; upgrade to OW

J P M O R G A N Asia Pacific Equity Research

21 June 2026

Powerchip Semiconductor

Manufacturing Corp. ▲Overweight

Previous: Neutral

Memory foundry pricing to drive strong GM uptick, new 6770.TWO, 6770 TT

Price (18 Jun 26):NT$74.20

avenues for memory and logic growth; upgrade to OW ▲Price Target (Jun-27):NT$100.00

Prior (Dec-26):NT$50.00

We upgrade PSMC to OW with a Jun-27 PT of NT$100 (14x 12M forward Technology and Telecoms

ACearnings, vs NT$50 previously, based on 1.7x P/B, given the clearer growth Gokul Hariharan

trajectory now) to reflect stronger memory Foundry ASP upgrades, potential new (852) 2800-8564

collaboration on HBM packaging and DDR4 process with Micron and upside from gokul.hariharan@jpmorgan.com

Silicon capacitor Foundry opportunity in logic Foundry. Now that PSMC’s J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

fundraising is behind us, we believe that the stock is likely to respond to GM uptick,

Jennifer Hsieh

and new logic revenue growth drivers. We expect GMs to go from 10% in 1Q26 (886-2) 2725-9868

to 47% in YE27, given limited cost increases, strong ASP hikes in memory foundry jennifer.hsieh@jpmorgan.com

(we model 3x from the bottom in 2Q25), price increases in logic Foundry and better J.P. Morgan Securities (Taiwan) Limited

utilization. We believe that PSMC’s ability to eventually migrate its DDR4 process David Chou

to sub-20nm nodes could also enhance its competitiveness vs. Chinese memory (886-2) 2725-9618

peers. We raise our earnings estimates by 4%/85% for 2026/27. david.chou@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited