Powerchip Semiconductor Manufacturing Corp

Powerchip maintains a capital structure characterized by significant leverage, with long-term debt of TWD 66.9 billion against total equity of TWD 82.0 billion, resulting in a debt-to-equity ratio of 0.82. The balance sheet shows total assets of TWD 178.7 billion and total liabilities of TWD 96.7 billion. Liquidity is supported by a current ratio of 1.94, though the company holds only TWD 14.8 billion in cash and equivalents, leading to a negative net cash position after accounting for total debt. The market values the firm at a price-to-book ratio of 3.76 and an EV/EBITDA of 39.48, reflecting premium valuation multiples despite current operational losses.

Profitability metrics indicate severe operational pressure in the latest period, with a gross profit of -TWD 1.5 billion and an operating income of -TWD 5.96 billion, culminating in a net income loss of -TWD 7.81 billion. Despite these losses, the valuation snapshot reports a return on equity of 9.17% and a return on assets of 4.21%, likely reflecting trailing or annualized figures that contrast sharply with the current quarterly or period-specific losses. The negative gross margin suggests pricing pressures or high input costs that are currently eroding the core manufacturing economics.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly defined as integrated circuits manufacturing within the semiconductor industry, but specific product mix or customer concentration details are absent from the current dataset.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a revenue base of TWD 46.7 billion, but without prior period comparisons, year-over-year growth rates cannot be calculated. The negative free cash flow of -TWD 5.18 billion, driven by capital expenditures of -TWD 8.59 billion against operating cash flow of TWD 7.82 billion, indicates heavy investment activity that is currently consuming all generated operating cash.

Risk assessment flags medium liquidity risk and low dilution risk. The key risk factor is the negative net cash position, which exposes the company to refinancing risks given its high debt load. The absence of diluted share count differences (basic and diluted shares are identical at 4.24 billion) supports the low dilution rating, suggesting no immediate options or convertible debt are impacting the share count.

Recent observations include analyst estimates with a mean price target of TWD 86.40 and a median of TWD 96.00, implying upside potential from the current market price of TWD 72.60. The mean recommendation of 2.14 suggests a moderate buy consensus, with four buy ratings and two hold ratings among analysts. Competitor context lists NVIDIA, Intel, and Broadcom, but no specific comparative metrics are provided.

Free cash flow improved by 74.9% year-over-year, indicating a recovery in cash generation capabilities.

Analysts maintain a buy recommendation with a mean price target of 73.0 TWD, implying modest upside.

Cash conversion ratio of 1.04 exceeds the semiconductor cohort median of 0.88.

Long-term debt surged to 68.0 billion TWD in 2025, reflecting a deteriorating balance sheet position.

The debt-to-equity ratio of 0.82 places the company in the bottom quartile of its semiconductor peers.

Revenue TWD 13.57B, +22,1% YoY; Operating income +1 757,8% YoY.

• ▍Revenue TWD 13.57B, +22,1% YoY
• ▍Operating income +1 757,8% YoY
• ▍Net income +1 397,2% YoY
• ▍Free cash flow +855,0% YoY
• ▍Net margin 104.9%

Revenue TWD 12.50B, +12,2% YoY; Operating income +63,5% YoY.

• ▍Revenue TWD 12.50B, +12,2% YoY
• ▍Operating income +63,5% YoY
• ▍Net income +56,4% YoY
• ▍Free cash flow +139,9% YoY
• ▍Net margin -5.2%

Revenue TWD 11.84B, +1,6% YoY; Operating income +0,3% YoY.

• ▍Revenue TWD 11.84B, +1,6% YoY
• ▍Operating income +0,3% YoY
• ▍Net income +5,2% YoY
• ▍Free cash flow +72,4% YoY
• ▍Net margin -23.0%

Revenue TWD 11.28B, +1,4% YoY; Operating income +23,8% YoY.

• ▍Revenue TWD 11.28B, +1,4% YoY
• ▍Operating income +23,8% YoY
• ▍Net income −70,3% YoY
• ▍Free cash flow +48,1% YoY
• ▍Net margin -29.6%

Revenue TWD 11.12B; Operating income -TWD 858.1M.

• ▍Revenue TWD 11.12B
• ▍Operating income -TWD 858.1M
• ▍Net margin -9.9%

Revenue TWD 11.13B; Operating income -TWD 1.97B.

• ▍Revenue TWD 11.13B
• ▍Operating income -TWD 1.97B
• ▍Net margin -13.5%

Revenue TWD 11.65B; Operating income -TWD 2.69B.

• ▍Revenue TWD 11.65B
• ▍Operating income -TWD 2.69B
• ▍Net margin -24.7%

Revenue TWD 11.12B; Operating income -TWD 2.23B.

• ▍Revenue TWD 11.12B
• ▍Operating income -TWD 2.23B
• ▍Net margin -17.6%

Revenue TWD 46.73B, +4,5% YoY; Operating income +25,2% YoY.

• ▍Revenue TWD 46.73B, +4,5% YoY
• ▍Operating income +25,2% YoY
• ▍Net income −15,3% YoY
• ▍Free cash flow +74,9% YoY
• ▍Net margin -16.7%

Revenue TWD 44.73B, +1,6% YoY; Operating income −152,4% YoY.

• ▍Revenue TWD 44.73B, +1,6% YoY
• ▍Operating income −152,4% YoY
• ▍Net income −312,4% YoY
• ▍Free cash flow +53,3% YoY
• ▍Net margin -15.2%

Revenue TWD 44.02B, −42,1% YoY; Operating income −112,0% YoY.

• ▍Revenue TWD 44.02B, −42,1% YoY
• ▍Operating income −112,0% YoY
• ▍Net income −107,6% YoY
• ▍Free cash flow −2 711,5% YoY
• ▍Net margin -3.7%

Revenue TWD 76.09B, +15,9% YoY; Operating income +31,1% YoY.

• ▍Revenue TWD 76.09B, +15,9% YoY
• ▍Operating income +31,1% YoY
• ▍Net income +34,4% YoY
• ▍Free cash flow −80,0% YoY
• ▍Net margin 28.4%