Powerchip Raises DRAM Foundry Prices Another 45% in July; Logic Process Capacity Hits 1.4× Booking Ratio as Mature Nodes Face Severe Shortages

Powerchip’s gross margin improved to 28% in the second quarter of 2026, and the company expects profitability to continue rising through the third and fourth quarters.

Chairman Frank Huang believes the upcycle is only beginning. Looking ahead to 2027, he expects gross margins across the wafer foundry industry to exceed 40%, not only for Powerchip but also for its major peers and competitors, including UMC and Vanguard International Semiconductor (VIS). According to Huang, the industry’s outlook remains exceptionally strong, supported by robust demand and tightening capacity across mature process technologies.