TAIPEI (Taiwan News) — Powertech Technology Inc said Wednesday that Taiwan dollar appreciation could dent earnings even as it ramps up advanced packaging for AI-related memory and CPUs.

The chip testing and packaging firm at its annual shareholders’ meeting approved a cash dividend of NT$7 per share, per CNA. PTI CEO Hsieh Yung-ta (謝永達) said Q2 performance will improve from Q1, which the company sees as the lowest point of the year.

Hsieh said the company is watching tariff developments but has seen limited impact so far. The stronger Taiwan dollar, however, could exert pressure despite the firm’s heavy US dollar revenue base, he noted.

On AI demand, Tsai said packaging for high-bandwidth memory, HBM, will show clearer progress between late 2024 and 2026 through partnerships with domestic and Japanese memory makers. Analysts say PTI has HBM capacity around 2,000 wafers per month and will expand based on customer process and yield needs.

To meet testing demands for AI chips, PTI’s Japan-based TeraPower unit is increasing investments in testing equipment. The group is also ramping up its panel-level fan-out packaging (FOPLP) for heterogeneous CPU integration, offering an alternative to TSMC’s CoWoS.

PTI’s CIS-TSV imaging sensor packaging is now in mass production, and FOPLP packaging for power management ICs continues to support sales. Analysts forecast Q2 growth in the high single digits, with PTI aiming to reach double-digit gains.