Powertech Technology (PTI), a Taiwanese memory packaging and testing vendor, experienced a decrease in solid-state drive (SSD) and NAND flash shipments in the first quarter of 2025, impacted by significant production cuts by customers.
PTI's first-quarter consolidated revenue fell 9.4% sequentially to NT$15.49 billion (approx. US$480.81 million), the lowest since the third quarter of 2019. Excluding the revenue from the sale of the Xian factory in China, revenue in the first quarter decreased by 7.4% year-over-year, while profit reached NT$1.18 billion. PTI stated that first-quarter operations met expectations, with AI-related revenue accounting for 10%.
According to PTI, the decrease in revenue was caused by the reduced number of working days in the first quarter and a significant decline in NAND demand, which led to reduced production volume. Gross profit in the first quarter totaled NT$2.64 billion, while the gross margin fell 1.2pp from the previous quarter and 0.4pp year-over-year to 17.1%.
PTI saw the lowest quarterly figures in two years in the first quarter, posting an operating income of NT$1.55 billion. The operating margin fell to 10%, down 1.7pp sequentially and 1.2pp year-over-year. The profit after tax fell 18.1% from the previous quarter and 25.1% year-over-year to NT$1.58 billion. Additionally, the consolidated net income attributed to stockholders of the company fell 22.9% from the previous quarter and 32.4% year over year to NT$1.18 billion.
In the first quarter, packaging accounted for 69% of revenue, followed by testing with 23% and SIP/modules with 8%. By product category, logic accounted for 47%, NAND 24%, DRAM 21%, and SIP/modules 8%. By application category, consumer accounted for 28%, communications 23%, computing 22%, automotive 15%, AI 10%, and industrial 2%.
In terms of end applications, there was a significant decline in automotive demand; however, high-end advanced driver assistance systems (ADAS) saw noticeable gains. Communications and consumer products were flat, while computers, including PCs, servers, and cloud, experienced decreased demand in the first quarter. Industrial accounted for around 20%, while AI-related applications, including supporting ICs, which accounted for around 8% in the last quarter, will continue to see growth in the second half of the year.
A closer look at the first quarter reveals that customer demand for DRAM has remained weak since the fourth quarter of 2024, with quarterly and yearly revenue declines expected. Mobile revenue is anticipated to experience single-digit reductions quarterly and double-digit year-over-year. Automotive revenue will continue to see mid-single-digit growth both quarterly and year-over-year.
For NAND, component sales fell from the previous quarter due to weakened customer demand. Similarly, enterprise SSD sales saw double-digit sequential and year-over-year declines due to reduced demand.
PTI's consolidated revenue for logic products was flat with the previous quarter but showed high single-digit year-over-year growth. Greatek Electronics, a subsidiary of PTI, saw revenue on par with the previous quarter and double-digit year-over-year growth, owing to continued customer shipments. Related revenue from subsidiaries Tera Probe and Terapower Technology increased by mid to high single digits sequentially and year over year.
Article translated by Eifeh Strom and edited by Jack Wu
