Powerchip Semiconductor Manufacturing Corp (PSMC) moved to reassure shareholders on August 4, as acting chairman Brian Hsieh pledged to preserve late founder Frank Huang's AI-focused growth strategy while signaling a more measured approach to large overseas capital commitments.
Huang, who led PSMC for decades and helped build it into one of Taiwan's most ambitious specialty chip foundries, died on August 1 from cardiopulmonary failure. He was 76. His passing came less than three weeks after he had publicly promised at a July 14 investor conference that the company would pay dividends the following year — a pledge his successors now face pressure to fulfill.
Family Backing And A Pledge Of Stable Governance
Brian Hsieh, who had stepped down as the company's president two years ago in preparation for retirement, said he was in Texas when Frank Huang died and flew back to Taiwan immediately. Over the following days, he held discussions with both the management team and the Huang family, emerging with assurances that they will fully support the existing leadership structure.
PSMC plans to convene a board meeting on August 11 to formally address the question of a permanent chairman. Separately, Powerchip Innovation Holdings, PSMC's largest institutional shareholder, completed its own leadership transition on August 3, naming former PSMC president Hsieh Ming-lin as its new chairman.
"The most important purpose of today's press conference is to tell shareholders and investors where the company is headed, and to reassure the market," Brian Hsieh said.
AI Strategy And Micron Partnership Remain Unchanged
PSMC's three-pillar strategy — memory foundry, logic foundry, and a newer 3D AI Foundry and advanced packaging division — will remain intact, Brian Hsieh said. The company's AI-related business has already begun generating meaningful results, and will continue to serve as one of PSMC's primary growth engines.
The company's sale of its Tongluo fab to Micron, completed earlier this year, generated more than NT$50 billion in cash inflows and significantly improved PSMC's balance sheet by reducing its debt load. Equally important, the transaction deepened the two companies' technical relationship, extending collaboration into post-wafer processing and DRAM technology development — areas that could meaningfully sharpen PSMC's competitive edge in memory foundry services.
President Chu Hsien-kuo framed the company's posture around what he called "three things that haven't changed": the upward trajectory of core operations, the stability of the management team, and the company's strategic direction. He said 3D AI Foundry revenue has grown from roughly 3–5% of total sales to approximately 7%, with a target of reaching 20% within three years, driven by Wafer on Wafer stacking and AI advanced-packaging components including PWF and IPD devices.
Brian Hsieh Signals A More Conservative Overseas Stance
Brian Hsieh was candid about the contrast between his own management philosophy and Frank Huang's. "Huang would see an opportunity and go for it. I tend to assess the risk first, then think about the opportunity," he said, describing PSMC's future posture as "more conservative — we won't be rushing in."
That shift will be most visible when it comes to large overseas capital commitments. PSMC already has ongoing cooperation with Intel in advanced packaging, and Chu said the company has no predetermined stance on partnership structures — a joint-venture model to build capacity in the United States, Singapore, or Malaysia would be evaluated on its merits. But Brian Hsieh made clear that capital efficiency and shareholder returns would take priority over aggressive overseas expansion, citing the founding principle that Taiwan remains the most cost-effective and efficient location for semiconductor manufacturing.
Quarterly Growth Expected As AI Demand Holds Firm
Despite recent market concerns about overheating in AI infrastructure investment, Brian Hsieh said actual customer demand remains robust. Because foundry services carry a two-to-four-month lag between wafer starts and revenue recognition, the current strength in AI orders and rising average selling prices have yet to fully flow through to PSMC's financial results.
Chu said July revenue had already edged ahead of June, with more pronounced acceleration expected from August onward. The company projects double-digit quarter-on-quarter revenue growth from the second quarter through the fourth quarter of 2026, with full-year revenue and profit both expected to surpass 2025 levels. The September board meeting is expected to address an interim dividend distribution for the first half of the year.
PSMC's attorney Chen Chin-lung, speaking on behalf of Frank Huang's estate, said the founder left just one directive for his management team: honor the commitment he made at the July 14 investor conference. "His only request was that they fulfill his promise to shareholders — that dividends will definitely be paid next year," Chen said. He expressed confidence that the existing team would carry that commitment through.
Brian Hsieh echoed the aspiration, expressing hope that dividend payments would become an annual event rather than a one-time gesture. "Just as the chairman promised at this year's shareholder meeting, I hope PSMC can pay dividends every year going forward," he said.
To mark the passing of its founder, PSMC announced that a public memorial will be open from August 5 through August 12 for those who wish to pay their respects. Morris Chang, the founder of Taiwan Semiconductor Manufacturing Co. (TSMC), has agreed to serve as honorary chairman of Frank Huang's funeral committee. The date and venue for a formal memorial service will be announced separately. （Related： Frank Huang, a Pillar of Taiwan's Semiconductor Industry, Dies at 76 ｜ Latest ）
