Q3 Revenue and Profit Hit Records
Winbond held its Q3 earnings call, with single-quarter revenue and profit both hitting records on surging AI server demand and sharp increases in memory prices. Q3 consolidated revenue reached Tah Hsin NT$82.331 billion, up 37.6% QoQ and 278.2% YoY; single-quarter gross margin broke through 70% to 70.6%; net profit attributable to parent was NT$35.422 billion, single-quarter EPS was NT$7.58, and cumulative EPS for the first three quarters reached NT$15.32.
Product Mix Shifts Toward High-Margin Memory
Executive Vice President Fan Hsiang-Yun noted that as memory prices rose sharply, the company's revenue mix shifted strongly. In Q3, product revenue shares were 58% from customized memory business, 32% from flash memory, and 9% from logic products Nuvoton Technology. In the core memory business, Q3 memory gross margin reached 73.9%, operating margin reached 59.8%, and wafer fab utilization remained at nearly 100% full loading throughout the quarter.
NT$73.1 Billion for Kaohsiung Module B Expansion
Winbond announced that the board has approved a capital expenditure budget of up to NT$73.1 billion for the Module B expansion at the Kaohsiung fab, covering construction, electrical and mechanical works, and reservations for long-lead-time equipment, laying out long-term supply capacity for after 2027. General Manager Chen Pei-Ming said monthly capacity at Kaohsiung Module A will be filled to 24K by year-end and remain fully loaded next year and the year after; Module B is scheduled to break ground on December 29, with cleanroom monthly capacity planned at 50,000 to 60,000 wafers and full adoption of the 16nm process. 16nm has started tape-out from year-end and is expected to contribute more than 40% of revenue in H2 2027.
Advanced Technology and Acquisition Progressing Well
On advanced technology, Chen Pei-Ming said 3D DRAM CUBE technology is progressing well and is expected to enter mass production in 2027 as scheduled. As for the acquisition of Infineon's NOR Flash and F-RAM business, antitrust reviews in various countries are underway, with closing expected in H2 2027. The team will operate as the independent brand Spansion in the future, advancing on a dual track with Winbond. Looking ahead, although traditional consumer electronics will see a seasonal correction in Q4, AI demand is extremely strong, and as customer contract prices are raised, the industry expects memory supply-demand tightness in 2027 to 2028 to be even more severe than in 2026.