PSMC Reports Strong Q3 2026 Financial Results with Nearly Doubled Net Profit
Taiwanese semiconductor foundry PSMC announced its Q3 2026 financial results, reporting a net profit of 6.5 billion NTD (nearly double sequentially) and an overall revenue increase of 23% quarter-over-quarter. Driven by high capacity utilization reaching 97%, the company also raised wafer foundry prices by 8 to 10% during the third quarter. This performance highlights robust, ongoing demand across AI inference, specialty memory, and power management IC sectors, reflecting strong pricing power for foundries amid tight capacity. Additionally, PSMC's strategy of co-investing with clients for future 3D AI Foundry expansion indicates shifting partnership models in semiconductor manufacturing. Gross margin surged to 48% with a 20 percentage point jump quarter-over-quarter, while the company plans further price hikes of 10 to 20% in 2027. PSMC also expects its 1P DRAM process with Micron to enter mass production in Q2 2027 and is expanding its focus into the MLC NAND market.
## BACKGROUND
Power management integrated circuits (PMICs) are multi-function microchips used in electronic devices to perform power conversion and distribute power efficiently, reducing required circuit board space. Specialty DRAM refers to custom or application-specific dynamic random-access memory tailored for specific industries like automotive and networking rather than standard PC or mobile use.