Phison Electronics reports record Q3 earnings driven by AI demand

Phison Electronics reported record third-quarter results, with earnings per share reaching 138 TWD. The company saw a significant surge in revenue, which grew 374.6% year-on-year, driven largely by the expansion of its AI ecosystem. AI-related business revenue accounted for 57% of total revenue in the third quarter and rose to 65% in October.

Industry analysts and executives from various Taiwanese memory firms, including Nanya Technology, Winbond, and Macronix, noted a broader trend of rising profits due to memory price increases. However, industry leaders warned of potential supply shortages through 2027 as major manufacturers like Samsung, Micron, and SK Hynix shift production capacity toward HBM and DDR5 to meet AI requirements.

While demand for AI-related storage remains strong, some executives expressed caution regarding the sustainability of price hikes and the potential for a market correction around 2029. Companies are increasingly pivoting toward enterprise-grade SSDs, AI storage solutions, and edge AI to capture long-term growth.