Powerchip Semiconductor Manufacturing Corp. (6770) AI Stock Analysis

Powerchip Semiconductor Manufacturing Corp.

(TWSE:6770)

Select Model

Rating:37Underperform

Price Target:TWD 49.00▼(-16.24% Downside)

Action:initiatedcoverage

Date:11/09/26

Powerchip scores at the low end of the range, driven primarily by deteriorating fundamentals: negative gross margin, a third consecutive and widening annual loss, revenue still ~40% below its 2022 peak, and rising leverage that is steadily eroding the equity cushion. Technicals reinforce the caution, with the share price well below all major moving averages and negative MACD momentum, though deeply oversold RSI and Stochastic readings hint at potential for a near-term bounce. Valuation offers little support — the P/E is of limited use for a loss-making business and the 0.43% dividend yield is negligible. The main positives are the narrowing free cash flow deficit, positive operating cash flow of NT$6.1B, and a balance sheet that can absorb another soft year, suggesting the peak capex cycle is behind the company. The investment case rests entirely on a recovery in wafer pricing and fab utilization.

Positive Factors

Revenue GrowthThe reported revenue-growth rate indicates that PSMC is expanding its top line despite challenging semiconductor conditions. Sustained growth would support better fab utilization, broaden customer activity, and provide a foundation for eventual operating leverage if pricing and demand recover.

Negative Factors

Persistent LossesNegative gross profit and deep operating and net losses indicate that current production economics are not covering the company’s cost base. If this persists, PSMC may face weaker retained capital, reduced investment flexibility, and difficulty converting revenue growth into durable shareholder returns.

Powerchip Semiconductor Manufacturing Corp. (6770) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 270.00B
Dividend Yield: 0.39%
Average Volume (3M): 137.85M
Price to Earnings (P/E): 11.2
Beta (1Y): 1.63
Revenue Growth: 42.62%
EPS Growth: ―
Country: TW
Employees: 8,361
Sector: General
Sector Strength: 55
Industry: Semiconductors

Powerchip Semiconductor Manufacturing Corp. Business Overview & Revenue Model

Company Description

Powerchip Semiconductor Manufacturing Corporation, together with its subsidiaries, engages in the research and development, manufacturing, testing, packaging, and sale of integrated circuit products in Taiwan, the United States, China, and internatio...

Powerchip Semiconductor Manufacturing Corp. Financial Statement Overview

Summary

Fundamentals are weak across the board. The income statement is the core problem (score 20): revenue of NT$46.7B remains ~40% below the 2022 peak of NT$76.1B, gross margin has collapsed from 46.8% (2022) to -6.0% today, operating margin is -20.5%, and the company has posted three straight annual losses with the deficit widening to NT$7.8B (-16.7% net margin). The balance sheet (score 45) still offers a buffer with NT$82.0B of equity against NT$66.9B of debt, but leverage has climbed from 0.32x to 0.82x in three years, equity is eroding from accumulated losses, and ROE is -9.5%. Cash flow (score 35) is the most constructive element: operations generated positive cash of NT$6.1B despite the net loss, confirming depreciation drives much of the shortfall, and free cash flow has improved sharply from -NT$46.5B (2023) to -NT$2.5B. Still, free cash flow has been negative for three consecutive years and funding gaps have been covered with debt.

Income Statement

20Very Negative

Balance Sheet

45Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.20B	46.73B	44.73B	44.02B	76.09B	65.62B
Gross Profit	4.52B	-2.80B	525.42M	5.29B	35.58B	27.58B
EBITDA	5.63B	1.63B	4.39B	5.29B	34.30B	26.15B
Net Income	14.14B	-7.81B	-6.78B	-1.64B	21.63B	16.09B
Balance Sheet
Total Assets	197.06B	178.69B	188.92B	188.76B	173.49B	132.06B
Cash, Cash Equivalents and Short-Term Investments	68.71B	26.75B	32.03B	42.40B	65.01B	45.46B
Total Debt	30.02B	66.93B	68.04B	55.86B	30.06B	31.07B
Total Liabilities	68.18B	96.69B	100.28B	94.97B	78.23B	65.47B
Stockholders Equity	128.88B	82.00B	88.65B	93.79B	95.27B	66.60B
Cash Flow
Free Cash Flow	12.13B	-2.48B	-17.04B	-46.51B	13.42B	14.05B
Operating Cash Flow	18.35B	6.11B	6.49B	1.50B	32.86B	24.19B
Investing Cash Flow	11.79B	3.55B	-35.30B	-47.69B	-19.34B	-9.91B
Financing Cash Flow	-12.48B	-3.81B	6.58B	23.80B	6.04B	23.88B

Powerchip Semiconductor Manufacturing Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6770 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3264	62Neutral	TWD 90.99B	21.77	―	2.12%	31.88%	80.58%
TW:3105	57Neutral	TWD 204.76B	65.22	―	0.38%	31.84%	1329.89%
TW:2449	56Neutral	TWD 292.08B	29.96	―	0.43%	34.64%	-10.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6239	54Neutral	TWD 172.30B	21.39	―	1.86%	29.10%	65.42%
TW:8150	43Neutral	TWD 56.50B	19.21	―	1.39%	28.18%	1243.70%
TW:6770	37Underperform	TWD 278.96B	11.23	―	0.39%	42.62%	―

* General Sector Average

Performance Comparison

TW:6770 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6770	Powerchip Semiconductor Manufacturing Corp.	58.50	22.97	64.64%
TW:2449	King Yuan Electronics Co., Ltd.	231.00	26.51	12.96%
TW:3105	Win Semiconductors Corp.	521.00	392.04	304.01%
TW:3264	Ardentec Corporation	198.50	109.67	123.45%
TW:6239	Powertech Technology Inc.	242.00	75.28	45.16%
TW:8150	ChipMOS Technologies, Inc.	88.20	44.76	103.02%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Powerchip Semiconductor Manufacturing Corp. AI Stock Analysis