TAIPEI (Taiwan News) — Powerchip Semiconductor Manufacturing Corp. said Tuesday that recent price hikes will start lifting revenue from June as AI demand continues to drive growth.

The chipmaker said at an investor conference that it raised prices for memory and logic foundry services in March and April, with the sharpest increases in DRAM and NAND, per Anue.

PSMC said concerns over weaker DRAM spot prices are offset by long-term demand from AI firms. It noted that major customers have signed contracts with memory suppliers, and the market is expected to remain tight through the second half of the year.

According to the company, growth is being led by AI-related applications across memory and logic segments. Strong demand from cloud providers and data center operators continues to support orders despite market uncertainty.

PSMC said its next-generation DRAM process developed with Micron is progressing, with mass production targeted for 2028. The new node is expected to significantly boost output value by increasing chip density.

In NAND, reduced supply from South Korean producers has pushed prices higher, per ChosunBiz. PSMC said it has raised NAND foundry prices since April and is working with clients on new process technologies.

In logic foundry, capacity constraints following the sale of its Tongluo plant have tightened supply. This has led to price increases, particularly for 12-inch wafers used in driver ICs and image sensors.

For 8-inch wafers, strong demand from AI and energy storage applications has pushed utilization higher. The company said it has raised prices by about 10% monthly since March due to tight supply.

PSMC’s Q1 net profit after tax reached NT$14.23 billion (US$451.79 million), a sharp turnaround from the previous quarter’s NT$654 million loss, with EPS at NT$3.36, per UDN. Excluding the Micron transaction, core business profit exceeded NT$500 million, ending 10 consecutive quarters of losses.