Powerchip has swung back to profit on stronger memory prices and fatter foundry margins, good news for its shareholders while the wider Taiwan market slips.

• Powerchip turned a loss into profit last quarter, with revenue up 53% from a year ago on higher memory prices and better product mix.
• Long-term memory foundry contracts are being repriced 15% to 30% higher, and low-margin products are being dropped.
• The shift to 3D AI chip stacking, high-density silicon capacitors, and licensing income from its India plant should lift earnings sharply over the next two years, with per-share profit seen climbing to NT$7.84 by 2027.
• The broader Taiwan index opened weak after the Mid-Autumn break, dragged down by MediaTek falling through NT$5,000, while flat-panel makers AUO and Innolux drew heavy buying.
• Regulators are also preparing a cross-checking system in late October to stop investors stacking margin loans at multiple brokers, a move that could squeeze leveraged money out of stocks.

Outlook: Powerchip's earnings momentum looks set to build through 2027, but the overall market faces near-term pressure from falling Asian shares and tighter margin lending rules.