TAIPEI (Taiwan News) — Powertech Technology Chair Tsai Tu-kung (蔡篤恭) said Monday that memory shortages are likely to persist as AI demand accelerates.

Speaking before the company’s year-end banquet, Tsai said operations are expected to remain stable this year with modest gains in revenue, per Liberty Times. He said the company is accelerating investment in advanced packaging to meet customer needs, per CNA.

Tsai said Powertech is focusing on fan-out panel-level packaging (FOPLP), which allows larger package sizes than some competing technologies. Initial demand is coming from customers producing AI application-specific integrated circuits and AI-related CPUs, he explained.

The company is also expanding into optical engine manufacturing and advanced packaging for AI chips integrated with silicon photonics. Tsai said tighter integration between logic chips and memory will be critical as AI workloads grow.

Powertech plans capital expenditures of about NT$40 billion (US$1.27 billion) this year, mainly to expand FOPLP capacity. The company aims to achieve full utilization by mid-2028, with stronger growth expected in 2027 and 2028.

TrendForce said it expects conventional DRAM contract prices to increase from 90% to 95% from January to March due to AI demand, per Reuters.