Powerchip Semiconductor Manufacturing Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2026 and 2025 and Independent Auditors’ Review Report

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INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Powerchip Semiconductor Manufacturing Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Powerchip Semiconductor Manufacturing Corporation and its subsidiaries (collectively, the “Company”) as of March 31, 2026 and 2025, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of March 31, 2026 and 2025, its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2026 and 2025 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Ming Yuan Chung and Mei-Chen Tsai.

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Deloitte & Touche Taipei, Taiwan Republic of China

April 28, 2026

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 6 and 29) Financial assets at amortized cost - current (Notes 7, 29 and 31) Contract assets - current (Note 21) Accounts receivable - net (Notes 8, 21 and 29) Accounts receivable - related parties (Notes 8, 21, 29 and 30) Other receivables (Notes 29 and 30) Inventories (Note 9) Prepayments (Note 14) Other current assets - others (Note 14) Total current assets NON-CURRENT ASSETS Financial assets at amortized cost - non-current (Notes 7, 29 and 31) Contract assets - non-current (Note 21) Property, plant and equipment (Notes 11 and 31) Right-of-use assets (Note 12) Intangible assets (Note 13) Deferred tax assets (Notes 4 and 23) Prepayments for equipment Refundable deposits - non-current (Notes 29 and 30) Contract fulfillment costs - non-current Other non-current assets - others (Note 14) Total non-current assets TOTAL		March 31, 2026		December 31, 2025		March 31, 2025
		Amount % $ 25,559,039 15 20,267,653 12 696,988 - 6,728,640 4 78,734 - 8,559,431 5 9,915,897 6 1,229,840 - 24,693 - 73,060,915 42 4,040,818 2 72,928 - 84,935,619 49 3,082,070 2 173,487 - 5,509,875 3 771,740 1 3,703 - 75,684 - 951,241 1 99,617,165 58 $ 172,678,080 100		Amount % $ 24,214,750 14 2,534,059 1 266,376 - 6,484,467 4 65,115 - 447,195 - 9,291,111 5 840,871 1 3,713 - 44,147,657 25 - - 48,789 - 122,004,420 68 3,804,684 2 88,448 - 6,319,398 3 1,016,456 1 7,283 - 63,401 - 1,185,088 1 134,537,967 75 $ 178,685,624 100		Amount % $ 23,227,532 13 5,420,641 3 - - 6,253,752 3 47,382 - 1,781,390 1 9,586,588 5 1,295,455 1 4,464 - 47,617,204 26 - - - - 125,724,060 68 5,230,156 3 143,745 - 4,496,437 2 1,023,651 - 7,467 - 84,147 - 1,150,083 1 137,859,746 74 $ 185,476,950 100

LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 15, 29 and 31) Contract liabilities - current (Notes 21 and 30) Notes payable to unrelated parties (Note 29) Accounts payable to unrelated parties (Note 29) Payables for equipment (Note 29) Other payables (Notes 16, 29 and 30) Current tax liabilities (Notes 4 and 23) Provisions (Note 18) Lease liabilities - current (Notes 12, 29 and 30) Long-term borrowings - current portion (Notes 15, 29 and 31) Other current liabilities - other (Notes 17, 29 and 30) Total current liabilities NON-CURRENT LIABILITIES Contract liabilities - non-current (Note 21) Long-term borrowings (Notes 15, 29 and 31) Deferred income tax liabilities (Notes 4 and 23) Lease liabilities - non-current (Notes 12, 29 and 30) Net defined benefit liabilities - non-current (Notes 4 and 19) Guarantee deposits (Notes 17 and 29) Other non - current liabilities (Note 17) Total non-current liabilities Total liabilities EQUITY (Note 20) Share capital Ordinary shares Advance receipts for ordinary shares Total share capital Capital surplus Retained earnings Appropriated as legal reserve Appropriated as special reserve Unappropriated earnings Total retained earnings Others Total equity TOTAL		March 31, 2026		December 31, 2025		March 31, 2025
		Amount % $ 1,800,000 1 1,662,719 1 2,108 - 3,260,673 2 1,137,247 1 7,637,061 4 44,487 - 934,857 1 685,221 - 1,499,358 1 4,773,582 3 23,437,313 14 10,533,998 6 30,244,117 18 9,393,880 5 2,201,981 1 134,592 - 155,307 - - - 52,663,875 30 76,101,188 44 42,438,037 25 - - 42,438,037 25 28,116,079 16 4,035,004 2 4,807 - 21,987,813 13 26,027,624 15 (4,848) - 96,576,892 56 $ 172,678,080 100		Amount % $ - - 1,428,724 1 - - 2,996,701 2 1,710,694 1 4,519,703 3 36,904 - 921,800 - 671,785 - 4,061,671 2 6,437,237 4 22,785,219 13 1,004,445 - 59,237,761 33 10,203,403 6 2,960,200 2 164,532 - 226,202 - 103,675 - 73,900,218 41 96,685,437 54 42,238,882 24 19,753 - 42,258,635 24 27,949,944 16 4,035,004 2 4,087 - 7,757,324 4 11,796,415 6 (4,807) - 82,000,187 46 $ 178,685,624 100		Amount % $ - - 1,227,345 1 - - 2,766,641 1 3,436,830 2 3,199,925 2 118,847 - 943,492 - 1,252,283 1 2,891,127 2 8,407,665 4 24,244,155 13 - - 60,739,354 33 8,380,442 5 3,532,129 2 329,896 - 282,037 - 109,525 - 73,373,383 40 97,617,538 53 41,876,140 22 6,135 - 41,882,275 22 27,542,831 15 4,035,004 2 4,087 - 14,398,287 8 18,437,378 10 (3,072) - 87,859,412 47 $ 185,476,950 100

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated April 28, 2026)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

OPERATING REVENUE (Notes 21 and 30) COST OF REVENUE (Notes 9, 13, 22 and 30) GROSS PROFIT (LOSS) OPERATING EXPENSES (Notes 13, 22 and 30) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses OTHER OPERATING INCOME AND EXPENSES, NET (Notes 21, 22, 26 and 30) PROFIT (LOSS) FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income (Note 22) Other gains and losses (Note 22) Finance costs (Notes 22 and 30) Total non-operating income and expenses PROFIT (LOSS) BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 23) NET PROFIT (LOSS) OTHER COMPREHENSIVE (LOSS) INCOME (Note 20) Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of the financial statements of foreign operations Total other comprehensive income (loss), net of income tax TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD EARNINGS (LOSS) PER SHARE (Note 24) Basic earning (loss) per share Diluted earning (loss) per share		For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 Amount % $ 13,572,462 100 12,184,249 90 1,388,213 10 170,075 1 744,410 5 1,615,179 12 2,529,664 18 15,367,559 113 14,226,108 105 105,012 1 457,721 3 (456,928) (3) 105,805 1 14,331,913 106 100,704 1 14,231,209 105 (41) - (41) - $ 14,231,168 105 $ 3.36 $ 3.28		2025
				Amount % $ 11,116,476 100 11,652,534 105 (536,058) (5) 116,371 1 622,378 6 1,353,688 12 2,092,437 19 1,770,364 16 (858,131) (8) 156,183 2 209,884 2 (440,257) (4) (74,190) - (932,321) (8) 164,726 2 (1,097,047) (10) 1,015 - 1,015 - $ (1,096,032) (10) $ (0.26) $ (0.26)

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated April 28, 2026)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Share Capital		Capital Surplus	Capital Surplus			R	etained Earnings

Number of Advance Shares (In Thousands) Ordinary Shares Receipts for Ordinary Shares 4,172,069 $ 41,720,692 $ 14,170 - - - - - - - - - - - - 15,545 155,448 (8,035) 4,187,614 $ 41,876,140 $ 6,135 4,223,888 $ 42,238,882 $ 19,753 - - - - - - - - - - - - 19,916 199,155 (19,753) 4,243,804 $ 42,438,037 $ -
	Issuance of Shares $ 26,411,417 - - - - 124,060 $ 26,535,477 $ 26,820,680 - - - - 178,917 $ 26,999,597	Donations $ 166,208 - - - - - $ 166,208 $ 166,208 - - - - - $ 166,208	Employee Stock Options $ 798,977 - - - - 33,671 $ 832,648 $ 952,088 - - - - (15,585) $ 936,503	Others $ 3,863 - - - - 4,635 $ 8,498 $ 10,968 - - - - 2,803 $ 13,771	Total $ 27,380,465 - - - - 162,366 $ 27,542,831 $ 27,949,944 - - - - 166,135 $ 28,116,079	Legal Reserve $ 4,035,004 - - - - - $ 4,035,004 $ 4,035,004 - - - - - $ 4,035,004	Special Reserve Unappropriated Earnings $ 3,623 $ 15,495,798 464 (464 ) - (1,097,047 ) - - - (1,097,047) - - $ 4,087 $ 14,398,287 $ 4,087 $ 7,757,324 720 (720 ) - 14,231,209 - - - 14,231,209 - - $ 4,807 $ 21,987,813

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated April 28, 2026)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit (loss) before income tax Adjustments for: Depreciation expense Amortization expense Finance costs Interest income Share-based compensation (Gain) loss on disposal of property, plant and equipment, net (Reversal of) write-down of inventories Impairment loss recognized on property, plant and equipment Net (gain) loss on foreign currency exchange Refund liabilities (reversed) recognized Provision recognized Interest income from refundable deposits Others Changes in operating assets and liabilities: Contract assets Accounts receivable (including related parties) Other receivables Inventories Prepayments Other current assets Costs to fulfil a contract Contract liabilities Notes payable Accounts payable Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations Interest received Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Increase in financial assets at amortized cost Decrease in financial assets at amortized cost Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Refundable deposits paid Refundable deposits refunded Payments for intangible assets Proceeds from disposal of intangible assets Net cash generated from investing activities		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 14,331,913 2,609,035 9,571 456,928 (105,012) 81,988 (20,072,631) (251,599) 5,496,875 (185,062) (379,000) 13,057 36 (104,843) (454,751) (267,373) (481,866) (373,187) (129,718) (20,980) (12,283) 9,763,548 2,108 263,972 3,165,881 1,472 (29,940) 13,328,139 155,831 (138,474) 13,345,496 (21,751,811) - (1,799,793) 43,210,149 (533) 4,108 (160,250) 63,938 19,565,808	2025 $ (932,321) 2,765,022 28,018 440,257 (156,183) 110,772 117 506,002 - 156,014 61,000 40,256 37 (1,955) - 116,199 (1,045,338) (242,794) 105,566 (2,671) (49,885) (230,548) - 133,656 (1,200,468) (11,795) (30,400) 558,558 302,015 (73,645) 786,928 - 9,258,093 (3,667,772) 198 (65) 998 (414) - 5,591,038 (Continued)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Guarantee deposits received Guarantee deposits refunded Repayment of the principal portion of lease liabilities Exercise of employee stock options Interest paid Return of dividends Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 2,100,000 (300,000) 7,257,624 (38,911,130) 515 (1,226,273) (329,537) 263,549 (422,449) 715 (31,566,986) (29) 1,344,289 24,214,750 $ 25,559,039	2025 $ - - 1,719,200 (806,591) 295 (1,501,466) (719,043) 199,007 (397,471) - (1,506,069) 635 4,872,532 18,355,000 $ 23,227,532

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated April 28, 2026)

(Concluded)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Powerchip Semiconductor Manufacturing Corporation (“Powerchip Semiconductor”), established from the separation of Powerchip Investment Holding Corporation (formerly known as Powerchip Technology Corporation) (“Powerchip”), was incorporated in Hsinchu Science Park Bureau, National Science and Technology Council on April 1, 2008. Powerchip Semiconductor’s business activities mainly include research and development, manufacturing, testing, packaging and selling various integrated circuit products. Powerchip Semiconductor together with its consolidated subsidiaries are hereinafter referred to collectively as the “Company”.

Powerchip Semiconductor’s shares have been listed on the Taiwan Stock Exchange (TWSE) since December 2021. Powerchip Semiconductor issued global depositary receipts (GDRs) in August 2022 by way of a capital raising issue of new shares and the GDRs are listed on the Luxembourg Stock Exchange.

The consolidated financial statements are presented in Powerchip Semiconductor’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by Powerchip Semiconductor’s Board of Directors on April 28, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Group’s accounting policies.

b. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note 2) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” January 1, 2027 (including the 2025 amendments to IFRS 19) Amendments to IAS 21 “Translation to a Hyperinflationary January 1, 2027 Presentation Currency”

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Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

As of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of Powerchip Semiconductor and the entities controlled by Powerchip Semiconductor (i.e., its subsidiaries).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

See Note 10 and Table 3 for detailed information of subsidiaries (including the percentage of ownership and main businesses).

d. Other material accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2025 for the material accounting policies.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

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2) Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The critical accounting judgments and key sources of estimation uncertainty followed in these consolidated financial statements are the same as those applied in the consolidated financial statements for the year ended December 31, 2025.

6. CASH AND CASH EQUIVALENTS

Demand deposits Checking accounts Cash on hand Cash equivalents Time deposits Total	March 31, 2026 $ 15,190,905 37,214 238 10,330,682 $ 25,559,039	December 31, 2025 $ 9,365,910 22,678 20 14,826,142 $ 24,214,750	March 31, 2025 $ 12,994,289 101,993 75 10,131,175
			$ 23,227,532

The interest rate intervals of bank deposits at the end of the reporting period were as follows:

	March 31,	December 31,	March 31,
	2026	2025	2025
Bank deposits	0%-4.05%	0%-4.28%	0%-4.60%

7. FINANCIAL ASSETS AT AMORTIZED COST

Current Restricted bank deposits Time deposits with original maturities of more than 3 months Pledged time deposits Non-current Pledged time deposits	March 31, 2026 $ 9,602,817 8,189,427 2,475,409 $ 20,267,653 $ 4,040,818	December 31, 2025 $ - 1,646,834 887,225 $ 2,534,059 $ -	March 31, 2025 $ - 4,541,416 879,225
			$ 5,420,641
			$ -

As of March 31, 2026, December 31, 2025 and March 31, 2025, the time deposits with original maturities of more than 3 months were 1.66%-4.14%, 1.63%-1.73% and 0.73%-2.00%, respectively.

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Refer to Note 31 for information relating to pledged financial assets at amortized cost.

8. ACCOUNTS RECEIVABLE

At amortized cost Accounts receivable - unrelated parties Less: Allowance for impairment loss Accounts receivable - related parties Less: Allowance for impairment loss Net accounts receivable	March 31, 2026 December 31, 2025 $ 6,728,640 $ 6,484,467 - - 6,728,640 6,484,467 78,734 65,115 - - 78,734 65,115 $ 6,807,374 $ 6,549,582	March 31, 2025 $ 6,253,752 - 6,253,752 47,382 - 47,382 $ 6,301,134

The Company’s average credit period for merchandise sales is 30 to 60 days at the end of the month, and accounts receivable are not subject to interest. In order to mitigate credit risks, the management of the Company, in accordance with the Company’s relevant policies, procedures and internal controls, assigns a dedicated team to be responsible for credit granting operations and other monitoring procedures to ensure that appropriate actions have been taken for the collection of overdue accounts receivable. The management is responsible for the determination of the credit limit and the approval of the credit. In addition, the Company regularly reviews the recoverable amount of accounts receivable one by one to ensure that the accounts receivable that cannot be recovered have been properly deducted.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses (ECLs). The ECLs on trade receivables are estimated using a provision matrix prepared by reference to the past default records of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook.

The Company writes off an account receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g., when the debtor has been placed under liquidation, or when the accounts receivable are past due. For accounts receivable that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of accounts receivable based on the Company’s provision matrix:

March 31, 2026 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2025 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due 0% $ 6,422,597 - $ 6,422,597 Not Past Due 0% $ 6,125,996 - $ 6,125,996	1 to 30 Days 0% $ 377,861 - $ 377,861 1 to 30 Days 0% $ 423,586 - $ 423,586	31 to 60 Days 0% $ 3,483 - $ 3,483 31 to 60 Days 0% $ - - $ -	61 to 90 Days 0% $ 3,433 - $ 3,433 61 to 90 Days 0% $ - - $ -	Over 90 Days 0%-100% $ - - $ - Over 90 Days 0%-100% $ - - $ -	Total - $ 6,807,374 -
						$ 6,807,374
						Total - $ 6,549,582 -
						$ 6,549,582

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March 31, 2025

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due 0% $ 5,815,766 - $ 5,815,766	1 to 30 Days 0% $ 485,149 - $ 485,149	31 to 60 Days 0% $ 219 - $ 219	61 to 90 Days 0% $ - - $ -	Over 90 Days 0%-100% $ - - $ -	Total - $ 6,301,134 -
						$ 6,301,134

9. INVENTORIES

Finished goods Work in process Raw materials Supplies and spare parts	March 31, 2026 December 31, 2025 $ 469,225 $ 841,612 5,511,221 4,624,712 1,508,628 1,538,474 2,426,823 2,286,313 $ 9,915,897 $ 9,291,111	March 31, 2025 $ 1,743,381 3,622,456 1,791,831 2,428,920 $ 9,586,588

The components of cost of goods sold are as follows:

Cost of goods sold (Reversal of ) write-downs of inventories Unallocated fixed manufacturing overheads		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 12,184,249 $ (251,599) $ 1,517,151	2025 $ 11,652,534 $ 506,002 $ 2,823,548

For the three months ended March 31, 2026, reversal of write-down of inventories was mainly due to the increase in product selling prices.

10. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements

Investor Investee Nature of Activities Powerchip Semiconductor PSMC Japan Corporation (PSMC Japan) Development, manufacture and sale of semiconductor and electronic components Maxram Inc. (Maxram) Development, manufacture and sale of semiconductor and electronic components	Proportion of Ownership (%)
	March 31, 2026 December 31, 2025 March 31, 2025 100 100 100 100 100 100

13 -

11. PROPERTY, PLANT AND EQUIPMENT

Buildings Machinery and equipment Research and development equipment Facility equipment Transportation equipment Office equipment Leasehold improvement Miscellaneous equipment Equipment under installation and construction in progress	March 31, 2026 $ 3,065,273 65,611,103 8,533,217 5,452,013 3,134 140,989 2,246 28,884 2,098,760 $ 84,935,619	December 31, 2025 $ 18,171,855 73,799,273 8,574,168 18,649,442 3,503 196,058 2,322 1,207,609 1,400,190 $ 122,004,420	March 31, 2025 $ 18,607,408 73,700,642 8,712,594 18,431,421 4,772 222,220 2,814 1,412,462 4,629,727 $ 125,724,060

Cost Balance at January 1, 2026 Additions Disposals Effect of foreign currency exchange differences Reclassification Balance at March 31, 2026 Accumulated depreciation Balance at January 1, 2026 Depreciation expense Disposals Effect of foreign currency exchange differences Reclassification Balance at March 31, 2026 Accumulated impairment Balance at January 1, 2026 Additions Disposals Balance at March 31, 2026 Carrying amount at March 31, 2026 Cost Balance at January 1, 2025 Additions Disposals Effect of foreign currency exchange differences Reclassification Balance at March 31, 2025 Accumulated depreciation Balance at January 1, 2025 Depreciation expense Disposals Effect of foreign currency exchange differences Reclassification Balance at March 31, 2025 Accumulated impairment Balance at January 1, 2025 and March 31, 2025 Carrying amount at March 31, 2025	Buildings $ 27,695,607 - (15,983,005 ) - (9,656) $ 11,702,946 $ 9,523,752 127,767 (1,013,846 ) - - $ 8,637,673 $ - - - $ - $ 3,065,273 $ 27,597,039 - - - 36,460 $ 27,633,499 $ 8,860,777 165,314 - - - $ 9,026,091 $ - $ 18,607,408	Machinery and Equipment $ 270,657,971 - (3,257,801 ) - 321,532 $ 267,721,702 $ 196,821,075 1,843,998 (1,973,066 ) - (848) $ 196,691,159 $ 37,623 5,382,110 (293) $ 5,419,440 $ 65,611,103 $ 260,824,704 - (10,556 ) - 4,283,910 $ 265,098,058 $ 188,797,282 1,831,419 (10,277 ) - 741,235 $ 191,359,659 $ 37,757 $ 73,700,642	Research and Development Equipment $ 11,474,444 - (50,036 ) - 254,378 $ 11,678,786 $ 2,900,276 176,733 (35,282 ) - 823 $ 3,042,550 $ - 103,019 - $ 103,019 $ 8,533,217 $ 11,006,959 - (5,041 ) - 448,969 $ 11,450,887 $ 2,517,672 166,705 (5,041 ) - 58,957 $ 2,738,293 $ - $ 8,712,594	Facility Equipment $ 48,054,256 - (14,294,680 ) - 215,973 $ 33,975,549 $ 29,404,814 263,892 (1,156,577 ) - 25 $ 28,512,154 $ - 11,382 - $ 11,382 $ 5,452,013 $ 46,148,609 - (1,500 ) - 738,727 $ 46,885,836 $ 28,134,037 321,878 (1,500 ) - - $ 28,454,415 $ - $ 18,431,421	Transportation Equipment $ 16,052 - - - - $ 16,052 $ 12,549 369 - - - $ 12,918 $ - - - $ - $ 3,134 $ 16,052 - - - - $ 16,052 $ 10,851 429 - - - $ 11,280 $ - $ 4,772	Office Equipment $ 1,058,720 - (63,939 ) (18 ) 692 $ 995,455 $ 862,662 22,527 (30,714 ) (9 ) - $ 854,466 $ - - - $ - $ 140,989 $ 1,019,542 - (196 ) 382 - $ 1,019,728 $ 772,719 24,754 (196 ) 231 - $ 797,508 $ - $ 222,220	Leasehold Improvement $ 4,443 - - (8 ) - $ 4,435 $ 2,121 72 - (4 ) - $ 2,189 $ - - - $ - $ 2,246 $ 4,647 - - 275 - $ 4,922 $ 1,914 78 - 116 - $ 2,108 $ - $ 2,814	Miscellaneous Equipment $ 3,702,677 - (1,736,789 ) - 2,591 $ 1,968,479 $ 2,495,068 52,855 (608,692 ) - - $ 1,939,231 $ - 364 - $ 364 $ 28,884 $ 3,694,534 - - - 6,872 $ 3,701,406 $ 2,211,555 77,389 - - - $ 2,288,944 $ - $ 1,412,462	Equipment under Installation and Construction in Progress $ 1,400,190 1,484,080 - - (785,510) $ 2,098,760 $ - - - - - $ - $ - - - $ - $ 2,098,760 $ 5,268,576 2,473,891 - - (3,112,740) $ 4,629,727 $ - - - - - $ - $ - $ 4,629,727	Total $ 364,064,360 1,484,080 (35,386,250 ) (26 ) - $330,162,164 $ 242,022,317 2,488,213 (4,818,177 ) (13 ) - $ 239,692,340 $ 37,623 5,496,875 (293) $ 5,534,205 $ 84,935,619 $ 355,580,662 2,473,891 (17,293 ) 657 2,402,198 $ 360,440,115 $ 231,306,807 2,587,966 (17,014 ) 347 800,192 $ 234,678,298 $ 37,757 $ 125,724,060

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The Company resolved, upon approval by the Board of Directors on February 10, 2026, to dispose of the Tongluo plant buildings and plant facilities (excluding production-related machinery and equipment) to Micron Memory Taiwan Co., Ltd. The transfer of ownership of the buildings was completed on March 13, 2026, and a gain on disposal of $20,130,360 thousand was recognized.

During the period from January 1 to March 31, 2026, the Company assessed that the expected future economic benefits of certain equipment with specific specifications had declined, resulting in their recoverable amounts being lower than their carrying amounts. Accordingly, the carrying amounts of such equipment were written down to their respective recoverable amounts, and an impairment loss of NT$5,496,875 thousand was recognized. The impairment loss was recognized under other gains and losses in the consolidated statements of comprehensive income. The recoverable amounts of the equipment were determined based on fair value less costs of disposal. As the equipment does not generate identifiable independent cash inflows, and there is a lack of observable market transactions for comparable assets, management considered that the key inputs required for the income approach and the market approach could not be reliably obtained; therefore, these valuation approaches were not applied. The related fair value was measured using the cost approach, which is based on the estimated replacement cost of the equipment, adjusted for physical deterioration, technological obsolescence, and the normal economic useful life of the assets, resulting in depreciated replacement cost as the measurement basis. The fair value measurement primarily utilized unobservable inputs, including estimates of the remaining useful life and related adjustment factors, and was therefore categorized as a Level 3 fair value measurement.

The Company’s property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings 21-40 years Machinery and equipment 1.5-19 years Research and development equipment 1.5-19 years Facility equipment 6-30 years Transportation equipment 6 years Office equipment 2-8 years Leasehold improvement 4-16 years Miscellaneous equipment 6 years

Refer to Notes 15 and 31 for the carrying amount of property, plant and equipment pledged by the Company as collateral for borrowings.

12. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Machinery and equipment Transportation equipment	March 31, 2026 December 31, 2025 $ 1,042,047 $ 1,663,502 29,774 34,232 1,993,292 2,088,377 16,957 18,573 $ 3,082,070 $ 3,804,684	March 31, 2025 $ 1,747,650 47,463 3,417,462 17,581 $ 5,230,156

15 -

Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Machinery and equipment Transportation equipment Lease liabilities March 31, 2026 Carrying amount Current $ 685,221 Non-current $ 2,201,981 The discount rates for lease liabilities were as follows: March 31, 2026 Land 2.92%-3.67% Buildings 1.78%-2.83% Machinery and equipment 2.66%-6.90% Transportation equipment 1.78%-2.75%	For the Three Months Ended March 31	For the Three Months Ended March 31
	2026 $ - $ 19,807 4,313 95,086 1,616 $ 120,822 December 31, 2025 $ 671,785 $ 2,960,200 December 31, 2025 2.92%-3.67% 1.78%-2.83% 2.66%-6.90% 1.78%-2.75%	2025 $ 1,607 $ 22,372 4,319 148,746 1,619 $ 177,056 March 31, 2025 $ 1,252,283 $ 3,532,129 March 31, 2025 2.38%-3.67% 1.78%-2.83% 1.61%-6.90% 1.78%-2.38%

b. Lease liabilities

c. Material leasing activities and terms

The Company leases land and buildings mainly for the use of plants and offices with lease terms of 20 years. The lease contracts for land located in the Science Park specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms.

The Company leases certain machinery and equipment for operational uses, and the lease period is 10 years. The Company doesn’t have purchase options to acquire the leasehold machinery and equipment at the end of the lease terms.

The Company also leases certain machinery and equipment. The lease period is 5.2 to 5.4 years. Upon the expiration of the lease period, the ownership of the machinery and equipment will be automatically transferred to the Company. The Company’s finance lease obligations are secured by the lessor’s ownership of the leased assets.

The Company leases transportation equipment for operational uses with lease terms of 4 to 5 years. The Company does not have purchase options to acquire the transportation equipment at the end of the lease terms.

16 -

d. Other lease information

Expenses relating to short-term leases Total cash outflow for leases	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 2,838 $ 349,850	2025 $ 6,149 $ 752,366

The Company chooses to apply the recognition exemption for the lease of plant facilities, official vehicles and equipment that qualify as short-term leases, and does not recognize the related right-of-use assets and lease liabilities for such leases.

13. INTANGIBLE ASSETS

Technical know-how and license fees Patents Software Others Cost Balance at January 1, 2026 Additions Disposals Fully amortized during the current period Effect of foreign currency exchange differences Balance at March 31, 2026 Accumulated amortization Balance at January 1, 2026 Amortization expense Disposals Fully amortized during the current period Effect of foreign currency exchange differences Balance at March 31, 2026 Carrying amount at March 31, 2026	Technical Know-how and License Fees $ 15,000 157,542 - - - $ 172,542 $ 6,057 750 - - - $ 6,807 $ 165,735	March 31, 2026 $ 165,735 1,416 6,336 - $ 173,487 Patents $ 7,750 - - - - $ 7,750 $ 6,197 137 - - - $ 6,334 $ 1,416	December 31, 2025 $ 8,943 1,553 9,278 68,674 $ 88,448 Software Others $ 32,525 $ 142,084 1,006 - - (142,084) (452) - (2) - $ 33,077 $ - $ 23,247 $ 73,410 3,948 4,736 - (78,146) (452) - (2) - $ 26,741 $ - $ 6,336 $ -	March 31, 2025 $ 26,481 3,164 23,245 90,855 $ 143,745 Total $ 197,359 158,548 (142,084) (452) (2) $ 213,369 $ 108,911 9,571 (78,146) (452) (2) $ 39,882 $ 173,487 (Continued)

17 -

Cost Balance at January 1, 2025 Additions Fully amortized during the current period Effect of foreign currency exchange differences Balance at March 31, 2025 Accumulated amortization Balance at January 1, 2025 Amortization expense Fully amortized during the current period Effect of foreign currency exchange differences Balance at March 31, 2025 Carrying amount at March 31, 2025 The above items of intangible assets are Technical know-how and license fees Patents Software Others	Technical Know-how and License Fees $ 162,733 - - - $ 162,733 $ 126,329 9,923 - - $ 136,252 $ 26,481 amortized on	Patents $ 23,750 - - - $ 23,750 $ 19,848 738 - - $ 20,586 $ 3,164 a straight-line	Software Others Total $ 79,461 $ 149,528 $ 415,472 678 - 678 (179) - (179) 58 - 58 $ 80,018 $ 149,528 $ 416,029 $ 47,024 $ 51,197 $ 244,398 9,881 7,476 28,018 (179) - (179) 47 - 47 $ 56,773 $ 58,673 $ 272,284 $ 23,245 $ 90,855 $ 143,745 (Concluded) basis over their useful lives as follows: 5 years 5-15 years 2-5 years 2-5 years

Aggregated amortization expenses according to functions:

Operating cost General and administrative expenses Research and development expenses	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 7,948 857 766 $ 9,571	2025 $ 16,457 988 10,573 $ 28,018

14. PREPAYMENTS AND OTHER ASSETS

		March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
			2026		2025		2025
Current
Prepayment	of purchase of material	$	313,769	$	171,217	$	416,908
Prepayment	of salaries		308,253		4,225		270,199
Prepayment	of income tax		243,743		200,985		203,914
							(Continued)

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Prepayment of insurance Others Non-current Prepayment of purchase of material Others	March 31, 2026 December 31, 2025 $ 58,014 $ 142,970 330,754 325,187 $ 1,254,533 $ 844,584 $ 945,599 $ 1,162,093 5,642 22,995 $ 951,241 $ 1,185,088	March 31, 2025 $ 66,776 342,122 $ 1,299,919 $ 1,122,886 27,197 $ 1,150,083 (Concluded)

15. BORROWINGS a. Short-term borrowings Secured borrowings Bank loans Unsecured borrowings Bank loans	March 31, 2026 December 31, 2025 $ 1,500,000 $ - 300,000 - $ 1,800,000 $ -	March 31, 2025 $ - - $ -

The interest rates on bank borrowings ranged from 1.75% to 1.90% as of March 31, 2026.

b. Long-term borrowings

Secured borrowings Long-term secured syndicated loans (1) Long-term secured syndicated loans (2) Long-term secured syndicated loans (3) Less: Current portion Less: Listed as government grants discount	March 31, 2026 $ 7,297,203 6,482,311 17,963,961 31,743,475 (1,499,358) - $ 30,244,117	December 31, 2025 $ 29,597,489 19,634,344 14,117,711 63,349,544 (4,061,671) (50,112) $ 59,237,761	March 31, 2025 $ 31,145,821 18,014,680 14,549,476 63,709,977 (2,891,127) (79,496) $ 60,739,354

The long-term secured syndicated loan (1) is payable quarterly at varying amounts, and the maturity date of the contract is February 2030. As of March 31, 2026 and December 31, 2025 and March 31, 2025, the annual effective interest rates were 2.56%, 2.56% and 2.60%, respectively. According to the requirements of the syndicated loan, Powerchip Semiconductor’s annual financial statements are subject to debt ratio, liquidity ratio and interest coverage ratio restrictions.

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The long-term secured syndicated loan (2) is payable periodically in varying amounts in accordance with the contract, and the maturity date of the contract is April 2031. As of March 31, 2026 and December 31, 2025 and March 31, 2025, the annual effective interest rates were 2.70%, 2.44%-2.70% and 2.49%-2.75%, respectively. According to the requirements of the syndicated loan, Powerchip Semiconductor’s annual financial statements are subject to debt ratio, liquidity ratio and interest coverage ratio restrictions.

The long-term secured syndicated loan (3) is payable periodically in varying amounts in accordance with the contract, and the maturity date of the contract is January 2032. As of March 31, 2026 and December 31, 2025 and March 31, 2025, the annual effective interest rates were 2.70%, 2.70% and 2.49%, respectively. The main commitments are as follows:

1) During the credit period, Powerchip Semiconductor’s annual capital expenditure plus non-capital expenditure and cash dividend payment limit shall not exceed the net profit after income tax at the end of the previous period minus income from significant cashless flows, plus depreciation and deduction of the share of the special reserve. However, if it is otherwise agreed in the contract, it will not be included in the expenditure limit. Non-capital expenditure refers to the borrower’s financing or repayment to related persons or related enterprises, and long-term and short-term investment in stocks or equity related to the borrower’s own business. However, the borrower’s finances or repayments to related persons or related enterprises for the purpose of replacing the existing loan is not subject to the aforementioned limit.
2) During the credit period, to comply with the aforementioned limit, Powerchip Semiconductor shall provide the quota management bank with the audited or reviewed reports on capital expenditure, expenditure limit and other related agreements on a quarterly basis.
3) Before the loan is repaid, Powerchip Semiconductor’s annual consolidated financial statements are subject to current ratio, debt ratio and interest coverage ratio restrictions.

Assets pledged as collateral for long-term loans are set out in Note 31.

16. OTHER PAYABLES

March 31,
2026
December 31,
2025
Payables for business tax
$ 2,664,177 $ -
Payables for salaries and bonuses

1,488,475

1,782,759

Payables for compensation of employees and
remuneration of directors
796,166

2,233

Payables for electricity

390,413

405,851

Payables for royalties

246,215

300,468

Payables for interest

40,944

88,477

Others

2,010,671

1,939,915

$ 7,637,061
$ 4,519,703

March 31,
2025
$ -

788,215

2,445

383,810

215,839

89,691

1,719,925
$ 3,199,925

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17. GUARANTEE DEPOSITS AND OTHER CURRENT LIABILITIES

Current Guarantee deposits Refund liabilities Others Non-current Guarantee deposits Others PROVISIONS Current Onerous contracts (a) Other (b) Balance at January 1 Additions Balance at March 31	March 31, 2026 December 31, 2025 March 31, 2025 $ 4,131,198 $ 5,224,741 $ 7,646,214 162,000 541,000 310,000 480,384 671,496 451,451 $ 4,773,582 $ 6,437,237 $ 8,407,665 $ 155,307 $ 226,202 $ 282,037 $ - $ 103,675 $ 109,525 March 31, 2026 December 31, 2025 March 31, 2025 $ 864,980 $ 864,980 $ 903,236 69,877 56,820 40,256 $ 934,857 $ 921,800 $ 943,492 Onerous Contracts Others For the Three Months Ended March 31 For the Three Months Ended March 31 2026 2025 2026 2025 $ 864,980 $ 903,236 $ 56,820 $ - - - 13,057 40,256 $ 864,980 $ 903,236 $ 69,877 $ 40,256	March 31, 2026 December 31, 2025 March 31, 2025 $ 4,131,198 $ 5,224,741 $ 7,646,214 162,000 541,000 310,000 480,384 671,496 451,451 $ 4,773,582 $ 6,437,237 $ 8,407,665 $ 155,307 $ 226,202 $ 282,037 $ - $ 103,675 $ 109,525 March 31, 2026 December 31, 2025 March 31, 2025 $ 864,980 $ 864,980 $ 903,236 69,877 56,820 40,256 $ 934,857 $ 921,800 $ 943,492 Onerous Contracts Others For the Three Months Ended March 31 For the Three Months Ended March 31 2026 2025 2026 2025 $ 864,980 $ 903,236 $ 56,820 $ - - - 13,057 40,256 $ 864,980 $ 903,236 $ 69,877 $ 40,256	March 31, 2026 December 31, 2025 March 31, 2025 $ 4,131,198 $ 5,224,741 $ 7,646,214 162,000 541,000 310,000 480,384 671,496 451,451 $ 4,773,582 $ 6,437,237 $ 8,407,665 $ 155,307 $ 226,202 $ 282,037 $ - $ 103,675 $ 109,525 March 31, 2026 December 31, 2025 March 31, 2025 $ 864,980 $ 864,980 $ 903,236 69,877 56,820 40,256 $ 934,857 $ 921,800 $ 943,492 Onerous Contracts Others For the Three Months Ended March 31 For the Three Months Ended March 31 2026 2025 2026 2025 $ 864,980 $ 903,236 $ 56,820 $ - - - 13,057 40,256 $ 864,980 $ 903,236 $ 69,877 $ 40,256	March 31, 2026 December 31, 2025 March 31, 2025 $ 4,131,198 $ 5,224,741 $ 7,646,214 162,000 541,000 310,000 480,384 671,496 451,451 $ 4,773,582 $ 6,437,237 $ 8,407,665 $ 155,307 $ 226,202 $ 282,037 $ - $ 103,675 $ 109,525 March 31, 2026 December 31, 2025 March 31, 2025 $ 864,980 $ 864,980 $ 903,236 69,877 56,820 40,256 $ 934,857 $ 921,800 $ 943,492 Onerous Contracts Others For the Three Months Ended March 31 For the Three Months Ended March 31 2026 2025 2026 2025 $ 864,980 $ 903,236 $ 56,820 $ - - - 13,057 40,256 $ 864,980 $ 903,236 $ 69,877 $ 40,256	March 31, 2026 December 31, 2025 March 31, 2025 $ 4,131,198 $ 5,224,741 $ 7,646,214 162,000 541,000 310,000 480,384 671,496 451,451 $ 4,773,582 $ 6,437,237 $ 8,407,665 $ 155,307 $ 226,202 $ 282,037 $ - $ 103,675 $ 109,525 March 31, 2026 December 31, 2025 March 31, 2025 $ 864,980 $ 864,980 $ 903,236 69,877 56,820 40,256 $ 934,857 $ 921,800 $ 943,492 Onerous Contracts Others For the Three Months Ended March 31 For the Three Months Ended March 31 2026 2025 2026 2025 $ 864,980 $ 903,236 $ 56,820 $ - - - 13,057 40,256 $ 864,980 $ 903,236 $ 69,877 $ 40,256
				For the Three Months Ended March 31
		2026 $ 864,980 - $ 864,980			2026 2025 $ 56,820 $ - 13,057 40,256 $ 69,877 $ 40,256

18. PROVISIONS

a. The provision for onerous contracts represents the long-term raw material purchase contracts from the measurement that the unavoidable costs of meeting the Company’s contractual obligations exceed the economic benefits expected to be received from the contracts.
b. Since 2025, the Company has recognized the carbon liabilities in accordance with the Collection of Carbon Fees of the ROC.

19. RETIREMENT BENEFIT PLANS

Employee benefit expenses in respect of the Company’s defined benefit retirement plans were $4,291 thousand and $7,269 thousand for the three months ended March 31, 2026 and 2025, respectively, and were calculated using the actuarially determined pension cost discount rate as of December 31, 2025 and 2024.

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20. EQUITY

a. Share Capital

1) Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	March 31, 2026 5,000,000 $ 50,000,000 4,243,804 $ 42,438,037	December 31, 2025 5,000,000 $ 50,000,000 4,223,888 $ 42,238,882	March 31, 2025 5,000,000 $ 50,000,000 4,187,614 $ 41,876,140

Fully paid ordinary shares, which have a par value of NT$10, carry one vote per share and carry a right to dividends.

A total of 500,000 thousand shares of Powerchip Semiconductor’s authorized shares were reserved for the exercise of employee stock options.

The change in Powerchip Semiconductor’s share capital is mainly due to exercise of employee stock options.

As of December 31, 2025 and March 31, 2025, Powerchip Semiconductor had 1,474 thousand shares and 451 thousand shares exercised employee stock options that had not yet been issued, respectively, and the total exercise price of $19,753 thousand and $6,135 thousand received was recognized as advance receipts for ordinary shares, respectively.

For shares exercised on employee stock options in the first quarter of March 31, 2026, the base date for the conversion of employee stock option certificates into new shares and capital increase was April 28, 2026. Powerchip Semiconductor had not completed the change registration before the approval date of the consolidated financial statements.

2) Issuance of GDRs

In order to meet the needs of future operations and development and the purchase of new plant machinery and equipment for strengthening international competitiveness, Powerchip Semiconductor’s Board of Directors approved on June 17, 2022 the issuance of ordinary shares for a cash capital increase through GDRs with a par value of NT$10. On August 2, 2022, Powerchip Semiconductor issued 23,333 thousand units of GDRs on the Luxembourg Stock Exchange at US$17.55 per unit, with each unit carrying 15 shares of Powerchip Semiconductor’s ordinary shares, for a total of 349,995 thousand shares, raising total funds of US$409,494 thousand.

According to the provisions of Article 267 of the Company Act, 10% of the total new shares issued were reserved for employees’ subscription.

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b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Arising from issuance of ordinary shares Donations Arising from exercise of employee stock options Invalidation of employee stock options May not be used for any purpose Arising from employee stock options issued	March 31, 2026 $ 25,017,237 166,208 1,982,360 13,771 936,503 $ 28,116,079	December 31, 2025 $ 24,933,090 166,208 1,887,590 10,968 952,088 $ 27,949,944	March 31, 2025 $ 24,815,361 166,208 1,720,116 8,498 832,648 $ 27,542,831

1) Such capital surplus may be used to offset a deficit; in addition, when Powerchip Semiconductor has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of Powerchip Semiconductor’s paid-in capital and to once a year).

c. Retained earnings and dividends policy

Under the dividends policy as set forth in Powerchip Semiconductor’s Articles of Incorporation, profit distribution or offset of deficit can be made after the end of each half of the fiscal year. If there is a surplus in the final accounts of each half-fiscal year, retaining an estimated amount for tax payables, any accumulated losses should be offset first and setting aside 10% as legal reserve until the legal reserve equals Powerchip Semiconductor’s paid-in capital. A special reserve shall also be set aside or reversed in accordance with laws or regulations of the competent authorities. Any remaining profit plus the undistributed earnings for the first half of the year shall be used by Powerchip Semiconductor’s Board of Directors as the basis for proposing a distribution plan for the distribution of dividends to shareholders. If the dividends are to be distributed in the form of new shares, it should be submitted to the shareholders’ meeting for resolution. For the policies on the distribution of employees’ compensation and remuneration of directors as specified in the Articles of Incorporation of Powerchip Semiconductor, please refer to Note 22 (g) Employees’ compensation and remuneration of directors.

Powerchip Semiconductor’s dividend policy is based on the current and future development plans, considering the investment environment, capital needs and domestic and foreign competition conditions, and taking into account the interests of shareholders and other factors. Powerchip Semiconductor’s Board of Directors shall make the distribution proposal and present it at the shareholders’ meeting. The distribution of dividends to shareholders includes 10% to 100% of the total dividends for cash dividends and 0% to 90% of the total dividends for stock dividends.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals Powerchip Semiconductor’s paid-in capital. The legal reserve may be used to offset deficits. If Powerchip Semiconductor has no deficit and the legal reserve has exceeded 25% of Powerchip Semiconductor’s paid-in capital, the excess may be transferred to capital or distributed in cash.

When a special reserve is appropriated for cumulative net debit balance reserves from prior period, the special reserve is only appropriated from the prior unappropriated earnings.

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The appropriations of 2025 and 2024 earnings have been approved by Powerchip Semiconductor’s Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:

		2025			2023
Resolution Date of Powerchip Semiconductor’s Board of	February		24,	February 25,
Directors in its meeting		2026			2025
Legal reserve	$		-	$		-
Special reserve	$	720		$	464
Cash dividends	$		-	$		-
Cash dividends per share (NT$)	$		-	$		-

The other appropriations of earnings for 2025 and 2024 had been approved in the shareholders’ meeting on April 10, 2026 and May 27, 2025, respectively.

d. Other equity items

Exchange differences on translating the financial statements of foreign operations:

Balance, beginning of period Exchange differences on translating the financial statements of foreign operations Balance, end of period	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ (4,807) (41) $ (4,848)	2025 $ (4,087) 1,015 $ (3,072)

21. REVENUE

Revenue from contracts with customers Revenue from the sale of goods a. Contract balances March 31, 2026 December 31, 2025 Accounts receivable (Note 8) $ 6,807,374 $ 6,549,582 Contract assets Others $ 769,916 $ 315,165 Contract liabilities Sale of goods $ 10,514,748 $ 757,069 Others 1,681,969 1,676,100 $ 12,196,717 $ 2,433,169	For the Three Months Ended March 31	For the Three Months Ended March 31
	2026 $ 13,572,462 March 31, 2025 $ 6,301,134 $ - $ 563,747 663,598 $ 1,227,345	2025 $ 11,116,476 January 1, 2025 $ 6,417,333 $ - $ 563,334 894,523 $ 1,457,857
Revenue from the sale of goods a. Contract balances Accounts receivable (Note 8) Contract assets Others Contract liabilities Sale of goods Others

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The changes in balances of contract assets and contract liabilities primarily result from the timing difference between the satisfaction of performance obligations and the payments collected from customers.

Revenue recognized in the current reporting period from the contract liabilities at the beginning of the year is as follows:

From the contract liabilities at the beginning of the year Sale of goods Others (Classified as other operating income and expenses)	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 525,584 268,413 $ 793,997	2025 $ 312,015 263,859 $ 575,874

b. Disaggregation of revenue

Geography Taiwan America China Others Product items Specialty logic application products Memory products (piece) Memory products (die)		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 7,029,915 3,019,323 2,386,478 1,136,746 $ 13,572,462 $ 7,262,118 4,944,734 1,365,610 $ 13,572,462	2025 $ 5,907,519 1,753,453 1,932,921 1,522,583 $ 11,116,476 $ 7,254,223 3,475,317 386,936 $ 11,116,476

22. NET INCOME (LOSS)

a. Other operating income and expenses, net

Net gain (loss) on disposal of property, plant and equipment Net income from technology transfer Government grant income (Note 26) Impairment loss recognized on property, plant and equipment Other income and expenses		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 20,072,631 143,054 19,931 (5,496,875) 628,818 $ 15,367,559	2025 $ (117) 1,625,395 6,353 - 138,733 $ 1,770,364

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b. Interest income

Bank deposits Imputed interest	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 104,976 36 $ 105,012	2025 $ 156,146 37 $ 156,183

c. Other gains and losses

For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
2026 2025 $ 458,861 $ 209,884 (1,140) - $ 457,721 $ 209,884 For the Three Months Ended March 31
2026 2025 $ 426,806 $ 397,937 28,748 42,320 1,374 - $ 456,928 $ 440,257 For the Three Months Ended March 31
2026 2025 $ 15,340 $ 28,260 2.69%-2.71% 2.63%-2.68% For the Three Months Ended March 31
	2026 $ 2,488,213 120,822 9,571 $ 2,618,606	2025 $ 2,587,966 177,056 28,018 $ 2,793,040 (Continued)

d. Finance costs

e. Depreciation and amortization
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An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 2,328,055 280,980 $ 2,609,035 $ 7,949 1,622 $ 9,571	2025 $ 2,460,044 304,978 $ 2,765,022 $ 16,457 11,561 $ 28,018 (Concluded)

Refer to Note 13 for information relating to the line items in which any amortization of intangible assets is included.

f. Employee benefits expense

Post-employment benefits Defined contribution plans Defined benefit plans (Note 19) Share-based payments Equity-settled Other employee benefits Total employee benefits expense An analysis of employee benefits expenses by function Operating costs Operating expenses Other income and expenses and cost to fulfill a contract		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 122,522 4,291 126,813 81,988 4,637,970 $ 4,846,771 $ 3,304,573 1,507,138 35,060 $ 4,846,771	2025 $ 118,340 7,269 125,609 110,772 2,890,767 $ 3,127,148 $ 2,139,723 947,912 39,513 $ 3,127,148

g. Employees’ compensation and remuneration of directors

According to the Articles of Incorporation of Powerchip Semiconductor, Powerchip Semiconductor accrued employees’ compensation and remuneration of directors at rates of no less than 5% and no higher than 3%, respectively, of net income before income tax, employees’ compensation and remuneration of directors during the period. However, accumulated losses, if any, should be offset first. In accordance with the amendment to the Securities and Exchange Act enacted in August 2024, the Company has amended its Articles of Incorporation, subject to approval at the 2025 Annual General Meeting of Shareholders, to specify that no less than 35% of the employee remuneration allocated for the year shall be allocated to non-executive employees. The estimated employee compensation (including remuneration for non-managerial employees) and directors’ remuneration for the period from January 1 to March 31, 2026 are as follows:

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Estimated ratio
	March 31, 2026
Employees’ compensation		5.00%
Remuneration of directors		0.25%
Estimated amount
	March 31, 2026
Employees’ compensation	$	756,288
Remuneration of directors	$	37,815

Powerchip Semiconductor had loss before income tax for the year ended December 31, 2025 and 2024. Therefore, no employees’ compensation and remuneration of directors was accrued for the relevant period.

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

Information on the compensation of employees and remuneration of directors resolved by Powerchip Semiconductor’s Board of Directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense recognized in profit or loss:

Current tax In respect of the current period Adjustments for prior years Income tax expense recognized in profit or loss	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 17,166 83,538 $ 100,704	2025 $ 164,726 - $ 164,726

b. Income tax assessments

Powerchip Semiconductor’s income tax returns through 2024 have been approved by the tax collection authority.

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24. EARNINGS PER SHARE (LOSS)

Unit: NT$ Per Share

Basic earning (loss) per share Diluted earning (loss) per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 3.36 $ 3.28	2025 $ (0.26) $ (0.26)

The earnings (loss) and weighted average number of ordinary shares outstanding used in the computation of earnings (loss) per share for the current period were as follows:

Net income (loss) for the period

Net income (loss) used in the computation of basic and diluted earnings (loss) per share Number of shares		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 14,231,209	2025 $ (1,097,047)

Weighted average number of ordinary shares used in the computation of basic earnings (loss) per share Effect of potentially dilutive ordinary shares Employee stock options Employees’ compensation Weighted average number of ordinary shares used in the computation of diluted earnings (loss) per share		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 4,239,469 79,597 14,243 4,333,309	2025 4,179,365 - - 4,179,365

Since Powerchip Semiconductor can offer to settle the compensation to employees in cash or shares, Powerchip Semiconductor assumes the entire amount of the employees’ compensation would be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earning per share, if the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earning per share until the number of shares to be distributed to employees is resolved in the following year.

Powerchip Semiconductor had loss after income tax for the three months ended March 31, 2025. Therefore, the resulting potential shares of employee stock options are excluded from the calculation of diluted loss per share.

25. SHARE-BASED PAYMENT ARRANGEMENTS

Employee stock option plan

Powerchip Semiconductor obtained approval from the Financial Supervisory Commission to issue 120,000 thousand units, 150,000 thousand units and 300,000 thousand units of employee stock options on November 21, 2023, January 6, 2020 and November 10, 2020, respectively. Each option entitles the holder

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with the right to subscribe for one common share of Powerchip Semiconductor. The duration of the stock options is 6 years, and the holder of the certificate can exercise a certain percentage of the stock options after 2 years from the date of the issuance. After the issuance of stock options, in the event of any change in the common stocks of Powerchip Semiconductor, the exercise price of the stock options shall be adjusted in accordance with the prescribed formula.

The relevant information about employee stock option was as follows:

For the Three Months Ended March 31, 2026 Balance at January 1 Forfeited in the current period Balance at March 31 Options exercisable, end of the period For the Three Months Ended March 31, 2026 Balance at January 1 Forfeited in the current period Exercised in the current period Balance at March 31 Options exercisable, end of the period For the Three Months Ended March 31, 2025 Balance at January 1 Forfeited in the current period Balance at March 31 Options exercisable, end of the period	Stock Option Plan in 2020 Unit (Thousand) Weighted Average Exercise Price (New Taiwan Dollars) 43,358 $ 14.16 - - (16,294) 14.64 27,064 13.88 27,064 13.88	Stock Option Plan in 2023
		Unit (Thousand) Weighted Average Exercise Price (New Taiwan Dollars) 109,853 $ 27.12 (481) 27.15 109,372 27.12 54,545 27.15 Stock Option Plan in 2019
		Unit (Thousand) Weighted Average Exercise Price (New Taiwan Dollars) 3,391 $ 11.52 (825) 10.00 (2,148) 11.66 418 13.80 418 13.80 Stock Option Plan in 2023
		Unit (Thousand) Weighted Average Exercise Price (New Taiwan Dollars) 115,368 $ 27.12 (1,896) 27.15 113,472 27.12 - -

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For the Three Months Ended March 31, 2025 Balance at January 1 Forfeited in the current period Exercised in the current period Balance at March 31 Options exercisable, end of the period	Stock Option Plan in 2020 Unit (Thousand) Weighted Average Exercise Price (New Taiwan Dollars) 88,114 $ 13.98 (969) 13.80 (12,702) 13.80 74,443 14.01 74,443 14.01	Stock Option Plan in 2019
		Unit (Thousand) Weighted Average Exercise Price (New Taiwan Dollars) 12,354 $ 10.93 - - (2,223) 10.68 10,131 10.98 10,131 10.98

As at the end of the reporting period, information about the outstanding employee stock option plans was as follows:

	March 31, 2026	March 31, 2026	December 31, 2025	December 31, 2025	March 31, 2025	March 31, 2025
		Weighted		Weighted		Weighted
	Range of	Average	Range of	Average	Range of	Average
	Exercise Price	Remaining	Exercise Price	Remaining	Exercise Price	Remaining
	(New Taiwan	Contract Life	(New Taiwan	Contract Life	(New Taiwan	Contract Life
Stock Option Plan	Dollars)	(Years)	Dollars)	(Years)	Dollars)	(Years)
Stock option plan in 2023	$ 21.95-27.15	3.90	$ 21.95-27.15	4.15	$ 21.95-27.15	4.90
Stock option plan in 2020	13.80-59.30	0.63	13.80-59.30	0.88	13.80-59.30	1.63
Stock option plan in 2019	13.80	0.63	10.00-13.80	0.39	10.00-13.80	1.02
The resolution for	the granting	of the 2023 employee stock options			was passed	by Powerchip
Semiconductor’s Board of Directors on February 20, 2024, and the fair values were assessed using the
Binomial option pricing model, the inputs to the model were as follows:
Grant-date share price (NT$)					$ 27.15
Exercise price (NT$)					$ 27.15
Expected volatility					36.17%-37.23%
Expected life					4.90-5.58 years
Expected dividend yield						-
Risk-free interest rate						1.18%-1.19%
Fair value of stock options						9.07-9.92

The resolution for the granting of the 2023 employee stock options was passed by Powerchip Semiconductor’s Board of Directors on February 20, 2024, and the fair values were assessed using the Binomial option pricing model, the inputs to the model were as follows:

The resolution for the granting of the 2023 employee stock options was passed by Powerchip Semiconductor’s Board of Directors on August 13, 2024, and the fair values were assessed using the Black-Scholes pricing model, the inputs to the model were as follows:

Grant-date share price (NT$)	$	21.95
Exercise price (NT$)	$	21.95
Expected volatility		30.61%
Expected life		2-4 years
Expected dividend yield		-
Risk-free interest rate		1.27%
Fair value of stock options		3.99-5.71

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The resolution for the granting of the 2020 employee stock options was passed by Powerchip Semiconductor’s Board of Directors on November 13, 2020, and the fair values were assessed using the Binomial option pricing model, the inputs to the model were as follows:

Grant-date share price (NT$)	$	15.31
Exercise price (NT$)	$	15.50
Expected volatility		42.58%
Expected life		4.88 years
Expected dividend yield		2.41%
Risk-free interest rate		0.22%
Fair value of stock options		4.72-4.85

The resolution for the granting of the 2020 employee stock options was passed by Powerchip Semiconductor’s Board of Directors on March 9, 2021, and the fair values were assessed using the Binomial option pricing model, the inputs to the model were as follows:

Binomial option pricing model, the inputs to the model were	as follows:
Grant-date share price (NT$)	$	38.47
Exercise price (NT$)	$	66.50
Expected volatility		43.30%
Expected life		4.95 years
Expected dividend yield		2.27%
Risk-free interest rate		0.36%
Fair value of stock options		6.98-7.53

The resolution for the granting of the 2019 employee stock options was passed by the Board of Directors on January 20, 2020, and the fair values were assessed using the Binomial option pricing model; the inputs to the model were as follows:

the model were as follows:
Grant-date share price (NT$)	$	9.28
Exercise price (NT$)	$	10.00
Expected volatility		42.70%
Expected life		4.87 years
Expected dividend yield		-
Risk-free interest rate		0.53%
Fair value of stock options		3.25-3.50

The resolution for the granting of the 2019 employee stock options was passed by the Board of Directors on November 13, 2020, and the fair values were assessed using the Binomial option pricing model; the inputs to the model were as follows:

to the model were as follows:
Grant-date share price (NT$)	$	15.31
Exercise price (NT$)	$	15.50
Expected volatility		42.58%
Expected life		4.88 years
Expected dividend yield		2.41%
Risk-free interest rate		0.22%
Fair value of stock options		4.72-4.85

Compensation cost recognized were $81,988 thousand and $110,772 thousand for the three months ended March 31, 2026 and 2025, respectively.

26. GOVERNMENT GRANTS

Powerchip Semiconductor applied for Ministry of Economic Affairs’ program for research and development and conserve energy to reduce carbon emission. For the three months ended March 31, 2026 and 2025, Powerchip Semiconductor received to total of $17,632 thousand and $4,403 thousand as government grants, respectively. As of March 31, 2026, the collateral provided by Powerchip Semiconductor included

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cashier checks whose drawees are banking industries and guarantee letters, and the amounts were $141,120 thousand and $31,774 thousand, respectively.

Powerchip Semiconductor’s long-term secured syndicated loan (2) is applicable to a government below-market interest rate loan of $15,000,000 thousand from the “Investment Plan for Investment by Domestic Corporations” for purchase machinery and equipment, the loan will be repaid on an average monthly basis after the grace period. At the time of the borrowing, the fair value of the borrowing was estimated based on the market interest rate. The difference between the amount obtained and the fair value of the loan is $117,000 thousand, which is regarded as a government below-market interest loan, recognized as deferred income and recognized as profit over the useful life of the related asset. For the three months ended March 31, 2026 and 2025, Powerchip Semiconductor recognized government grants income of $1,300 thousand and $1,950 thousand the interest expense of the loan were $6,304 thousand and $9,616 thousand, respectively. The Company fully prepaid the government below-market interest rate loan on March 19, 2026.

Powerchip Semiconductor applied and obtained a reduction in trade financing interest rates under the “Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Situations” issued by the Ministry of Finance, and recognized government grants of NT$999 thousand for the period from January 1 to March 31, 2026.

27. CASH FLOW INFORMATION

a. Non-cash transactions

Increase in property, plant and equipment Decrease in payables for equipment (Decrease) increase in prepayments for equipment Others Cash paid for acquisition of property, plant and equipment		For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 1,484,080 573,447 (244,716) (13,018) $ 1,799,793	2025 $ 2,473,891 915,306 240,399 38,176 $ 3,667,772

b. Changes in liabilities arising from financing activities

For the Three Months Ended March 31, 2026

Balance at January 1, 2026 Short-term borrowings $ - Long-term borrowings (including current portion of long-term borrowings) 63,299,432 Guarantee deposits 5,450,943 Lease liabilities 3,631,985 $ 72,382,360	Cash Flow $ 1,800,000 (31,653,506 ) (1,225,758 ) (329,537) $ (31,408,801)		Non-cash Changes Exchange Rate Changes Others (Note) $ - $ - - 97,549 70,901 (9,581 ) 28,024 (443,270) $ 98,925 $ (355,302)	Balance at March 31, 2026 $ 1,800,000 31,743,475 4,286,505 2,887,202
			Exchange Rate Changes $ - - 70,901 28,024 $ 98,925
				$ 40,717,182

For the Three Months Ended March 31, 2025

Balance at January 1, 2025 Long-term borrowings (including current portion of long-term borrowings) $ 62,734,464 Guarantee deposits 9,339,854 Lease liabilities 5,306,148 $ 77,380,466	Cash Flow $ 912,609 (1,501,171 ) (719,043) $ (1,307,605 )		Non-cash Changes Exchange Rate Changes Others (Note) $ - $ (16,592 ) 89,569 (1 ) 28,271 169,036 $ 117,840 $ 152,443	Balance at March 31, 2025 $ 63,630,481 7,928,251 4,784,412
			Exchange Rate Changes $ - 89,569 28,271 $ 117,840
				$ 76,343,144

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Note: Others mainly include transfer of liabilities from customer contracts, new lease liabilities, financial costs of borrowings and lease liabilities and transfer to long-term borrowings-government grants interest from deferred government grants.

28. CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to operate under the premises of going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

The Company’s capital structure consists of net debt (i.e., borrowings minus cash and cash equivalents) and equity (i.e., share capital, capital surplus, retained earnings and other equity items).

29. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

The management believes the carrying amounts of financial assets and financial liabilities that are not carried at fair value approximate their fair values.

b. Categories of financial instruments

	March 31,	December 31,	March 31,
	2026	2025	2025
Financial assets
Amortized cost (Note 1)	$ 65,103,803	$ 33,621,251	$ 36,412,885
Financial liabilities
Amortized cost (Note 2)	44,917,536	76,192,481	80,171,468

Note 1: Including cash and cash equivalents, restricted bank deposits, time deposits with original maturities of more than 3 months, pledged time deposits, accounts receivable from unrelated parties, accounts receivable from related parties, other receivables and refundable deposits.
Note 2: Including short-term borrowings, notes payable to unrelated parties, accounts payable to unrelated parties, payables for equipment, other payables, current portion of long-term borrowings, long- term borrowings and guarantee deposits.
c. Financial risk management objectives and policies

The Company’s financial risk management objective is to manage market risk, credit risk and liquidity risk related to operating activities. In order to reduce related financial risks, the Company is committed to identifying, evaluating and avoiding market uncertainty in order to reduce the potential adverse effects of market changes on the Company’s financial performance.

The Company has established appropriate policies, procedures and internal controls for the aforementioned financial risk management in accordance with relevant regulations. Important financial activities must be reviewed by the Board of Directors in accordance with relevant regulations and internal control systems. The Company abides by relevant financial operating procedures.

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1) Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below), and interest rates (see (b) below).

There is no change to the Company’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Company had foreign currency sales and purchases, which exposed the Company to foreign currency risk. The Company applied natural hedge to manage the foreign currency risk. Furthermore, the Company entered into spot trades and forward exchange contracts to manage foreign currency risk. The purpose of the Company’s management of the foreign currency risk was to hedge against the risk instead of making a profit.

The carrying amounts of the Company’s monetary assets and monetary liabilities denominated in foreign currencies other than the functional currency (including those eliminated on consolidation) at the end of the reporting period are set out in Note 33.

Sensitivity analysis

The Company was mainly exposed to the USD, JPY, EUR, CNY and INR.

The following table details the Company’s sensitivity to a 1% increase and decrease in the functional currency against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency denominated monetary items, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. The sensitivity analysis included cash and cash equivalents, financial assets at amortized cost, accounts receivable (including related parties), other receivables, accounts payable, payables for equipment, lease liabilities, other payables and guarantee deposits. The table below shows the increase (decrease) in pre-tax profit for the period from January 1 to March 31, 2026, and the decrease (increase) in pre-tax loss for the period from January 1 to March 31, 2025, when the functional currency weakens 1% against each relevant foreign currency.

Profit or loss	USD Impact	JPY Impact	EUR Impact	CNY Impact	INR Impact
	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2026 2025 $ 285,217 $ 109,590	2026 2025 $ 2,861 $ 7,270	2026 2025 $ (327 ) $ 221	2026 2025 $ 154 $ 151	2026 2025 $ 256 $ 5

b) Interest rate risk

The Company is exposed to interest rate risk because it owns assets and borrows funds at both fixed and floating interest rates. Hedging activities are evaluated regularly, ensuring the most cost-effective hedging strategies are applied.

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting periods were as follows:

	March 31,	December 31,	March 31,
	2026	2025	2025
Fair value interest rate risk
Financial assets	$ 25,036,336	$ 17,360,201	$ 15,551,816
Financial liabilities	(4,687,202)	(3,631,985)	(4,784,412)
Cash flow interest rate risk
Financial assets	24,793,722	9,365,910	12,994,289
Financial liabilities	(31,804,728)	(63,458,234)	(63,839,508)

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Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the year. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the year was outstanding for the whole year.

If interest rates had been 0.1% higher/lower and all other variables were held constant, the Company’s pre-tax profit for the three months ended March 31, 2026 would have decreased/increased by $1,753 thousand, which was mainly attributable to the Company’s exposure to interest rates on its floating interest rate liabilities. The Company’s pre-tax loss for the three months ended March 31, 2025 would have increased/decreased by $12,711 thousand, which was mainly attributable to the Company’s exposure to interest rates on its floating interest rate liabilities.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in a financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk is mainly from the carrying amount of the respective financial assets recognized as stated in the balance sheets.

In order to minimize credit risk, the Company has in place credit and accounts receivable management policies to ensure that appropriate action is taken to recover overdue receivables. In addition, the Company regularly reviews the recoverable amount of each individual trade debt to ensure that adequate allowances are made for irrecoverable amounts.

The Company’s accounts receivable outstanding arose from trading with a large number of customers spreading across diverse industries and geographical areas. Ongoing credit evaluation of customers’ financial condition is performed on an annual or aperiodic basis.

Customer credit evaluation includes customers’ financial condition, credit rating, historical transaction records and market conditions. The Company would evaluate customers’ financial conditions periodically, and would obtain receipts in advance, deposits, pledged fixed deposit or others as collateral where appropriate, as a means of mitigating the risk of financial loss from defaults.

The credit risk on liquid funds and derivatives was limited because the counterparties are banks with high credit ratings.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’s operations and mitigate the effects of fluctuations in cash flows.

The Company relies on bank borrowings as a significant source of liquidity. As of March 31, 2026, December 31, 2025 and March 31, 2025, the Company had available unutilized loan facilities set out in (b) below.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Company’s remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities, including principal and interest,

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from the earliest date on which the Company can be required to pay. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

March 31, 2026

Less than 1 Year Non-derivative financial liabilities Non-interest bearing $ 12,037,089 Lease liabilities 748,833 Fixed interest rate liabilities 1,800,000 Floating interest rate liabilities 1,521,546 $ 16,107,468	1-5 Years $ - 1,535,244 - 21,888,622 $ 23,423,866	5+ Years $ - 1,021,336 - 8,394,560 $ 9,415,896	Total $ 12,037,089 3,305,413 1,800,000 31,804,728 $ 48,947,230

Additional information about the maturity analysis for financial liabilities

Lease liabilities Floating interest rate liabilities December 31, 2025 Non-derivative financial liabilities	$	10-1 $	20+ Years $ 4,038 -
		$	$ 4,038

Non-interest bearing Lease liabilities Floating interest rate liabilities
	$

Additional information about the maturity analysis for financial liabilities

Lease liabilities Floating interest rate liabilities March 31, 2025 Non-derivative financial liabilities	$	10-1 $	20+ Years $ 576,125 -
		$	$ 576,125

Non-interest bearing Lease liabilities Floating interest rate liabilities
	$

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Additional information about the maturity analysis for financial liabilities

Lease liabilities Floating interest rate liabilities	Less than 1 Year $ 1,357,094 2,923,432 $ 4,280,526	1-5 Years $ 2,326,552 46,875,138 $ 49,201,690	5-10 Years $ 691,597 14,040,938 $ 14,732,535	10-15 Years $ 581,615 - $ 581,615	15-20 Years $ 322,921 - $ 322,921	20+ Years $ 604,442 -
						$ 604,442

The amount of floating interest rate instruments for the above non-derivative financial liabilities will change due to the difference between the floating interest rate and the interest rate estimated on the balance sheet date.

b) Financing facilities

Unsecured overdraft facilities Amount used Amount unused Secured overdraft facilities Amount used Amount unused	March 31, 2026 $ 331,774 11,077,806 $ 11,409,580 $ 33,243,475 2,170,000 $ 35,413,475	December 31, 2025 $ 31,774 2,161,306 $ 2,193,080 $ 63,349,544 9,281,766 $ 72,631,310	March 31, 2025 $ - 1,945,550 $ 1,945,550 $ 63,709,977 10,460,493 $ 74,170,470

30. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between Powerchip Semiconductor and its subsidiaries, which are related parties of Powerchip Semiconductor, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Company and other related parties are disclosed below:

a. Related party names and categories

Related Party Name

Related Party Categories

Frank Huang et al.	Key management personnel
Skyvision Aviation Corp.	Consolidated entities of company with significant
	influence on the Company
Powerchip Micro Device Corp.	Consolidated entities of company with significant
	influence on the Company
Powerax Quantum Electronic Corp.	Substantive related parties
Novax Technologies Inc.	Substantive related parties
Teknowledge Development Corp.	Substantive related parties
Syntronix Corp.	Substantive related parties
Deutron Electronics Corp.	Substantive related parties
Yuxiu Huang	Substantive related parties
Powerchip Cultural Foundation	Substantive related parties
Powerchip Japan Corporation	Substantive related parties
Aerovision avionics, Inc.	Substantive related parties
Retronix Technology Inc.	Substantive related parties

38 -

b. Sales

For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
2026 2025 $ 254,776 $ 118,008 111 132 $ 254,887 $ 118,140 For the Three Months Ended March 31
2026 2025 $ 1,936 $ 2,264 For the Three Months Ended March 31
2026 2025 $ 86 $ 30,103 - 8,234 $ 86 $ 38,337 For the Three Months Ended March 31
2026 2025 $ 1,368 $ 1,313 For the Three Months Ended March 31
	2026 $ 600 200 $ 800	2025 $ 14,460 - $ 14,460

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g. Accounts receivable

		March 31,	March 31,	December	December	31,	March 31,	March 31,
			2026		2025			2025
	Substantive related parties	$	78,734	$	65,115		$	47,382
h.	Other receivables
		March 31,		December		31,	March 31,
			2026		2025			2025
	Substantive related parties	$	420	$		-	$	1,708
	Consolidated entities of company with
	significant influence on the Company		210			-		-
		$	630	$		-	$	1,708
i.	Contract liabilities
		March 31,		December		31,	March 31,
			2026		2025			2025
	Substantive related parties	$	12,383	$	12,808		$	11,020
	Consolidated entities of company with
	significant influence on the Company		653		405			747
		$	13,036	$	13,213		$	11,767
j.	Other payables
		March 31,		December		31,	March 31,
			2026		2025			2025
	Substantive related parties	$	1,936	$	6,342		$	2,264
k.	Other current liabilities
		March 31,		December		31,	March 31,
			2026		2025			2025
	Consolidated entities of company with
	significant influence on the Company	$	-	$	28		$	-
l.	Guarantee deposits
		March 31,		December		31,	March 31,
			2026		2025			2025
	Key management personnel	$	1	$		1	$	1
	Substantive related parties		1			1		1
		$	2	$		2	$	2

The sales prices of foundry services and payment terms between the Company and its related parties are based on mutually agreed terms, and there is no other suitable counterparty for comparison.

40 -

The payment of royalties by the Company to its related parties are based on mutually agreed terms, and there is no other suitable counterparty for comparison.

The general and administrative expenses and research and development expenses between the Company and its related parties are based on the cooperation agreements negotiated by both parties, and there is no other suitable counterparty for comparison.

Other operating income and expenses between the Company and its related parties are based on mutually agreed terms, and there is no other suitable counterparty for comparison.

No guarantee deposit or collateral had been received for the outstanding accounts receivable from related parties.

The aforementioned other receivables from related parties primarily resulted from income generated through purchases made on behalf of related parties.

The sales terms of the Company’s contract liabilities are based on market conditions to determine the price and quantity when dealing with customers.

The above-mentioned other payments to related parties are mainly due to royalties and miscellaneous expenses.

Other than the above-mentioned transactions, transactions between the Company and its related parties are based on mutually agreed terms, and there is no other suitable counterparty for comparison.

m. Lease arrangements

Item Related Party Category March 31, 2026 Lease liabilities - Substantive related parties $ 8,284 current Key management personnel 80 $ 8,364 Lease liabilities - Key management personnel $ 137 non-current Substantive related parties 127 $ 264 Item Related Party Category Financial costs Substantive related parties Key management personnel Gain on lease modification (classified as other operating income and expense) Substantive related parties	December 31, 2025 March 31, 2025 $ 11,057 $ 10,884 80 78 $ 11,137 $ 10,962 $ 164 $ 217 304 8,554 $ 468 $ 8,771 For the Three Months Ended March 31	December 31, 2025 March 31, 2025 $ 11,057 $ 10,884 80 78 $ 11,137 $ 10,962 $ 164 $ 217 304 8,554 $ 468 $ 8,771 For the Three Months Ended March 31	December 31, 2025 March 31, 2025 $ 11,057 $ 10,884 80 78 $ 11,137 $ 10,962 $ 164 $ 217 304 8,554 $ 468 $ 8,771 For the Three Months Ended March 31
		2026 $ 59 1 $ 60 $ 5	2025 $ 136 2 $ 138 $ 5

41 -

The Company leases offices and parking spaces from related parties. The content of the leases was determined by mutual agreement between the two parties and the rent is paid periodically. For the three months ended March 31, 2026 and 2025, the lease conditions were modified, so the lease modification benefits were recognized.

n. Remuneration of key management personnel

Short-term employee benefits Post-employment benefits Share-based payments	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2026 $ 89,349 103 27 $ 89,479	2025 $ 52,048 290 22 $ 52,360

The remuneration of directors and other key management personnel was determined in accordance with individual performance and market trends.

31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collaterals for short and long-term borrowings, natural gas, rental of land from the Science Park Bureau, guarantee for customs duty and the bank guarantee:

Property, plant and equipment Restricted deposits (classified as financial assets at amortized cost)	March 31, 2026 $ 27,062,815 16,119,044 $ 43,181,859	December 31, 2025 $ 74,821,632 887,225 $ 75,708,857	March 31, 2025 $ 78,616,543 879,225 $ 79,495,768

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Except as stated in other notes, the Company has the following major commitments and contingencies on the balance sheet date:

a. Powerchip Semiconductor entered into certain patent licensing agreements with several other companies for dynamic random-access memory (DRAM) technologies, and Powerchip Semiconductor promised to pay a certain percentage of royalties based on the agreed product price after the technology transfer was completed.
b. Powerchip Semiconductor has signed long-term raw material purchase contracts with several suppliers to ensure the stable supply of raw materials, which stipulates the relevant minimum quantity and price that Powerchip Semiconductor must purchase.
c. Powerchip Semiconductor signs contracts with some customers. After the customers provide deposits or other collaterals, Powerchip Semiconductor provides specific production capacity to the customers within the time limit agreed in the contract.
42 -
d. In order to fulfill its corporate social responsibility and cultivate scientific and technological research talents in key national fields, Powerchip Semiconductor signed contracts with several universities to donate meet certain amount each year from 2022 to 2033 for the funding of the development of research colleges, industry-university cooperative research program funds, scholarships and nurturing researchers. As of March 31, 2026, Powerchip Semiconductor unrecognized amount was $566,000 thousand.
e. Powerchip Semiconductor entered into a Technology Transfer and Licensing Service Agreement with a certain company. Under the agreement, the counterparty pays licensing service fees, and the Company commits to providing support services and technology transfer licensing.
f. Powerchip Semiconductor entered into long-term energy purchase agreements with supplier. The relative fulfillment period, quantity and price are specified in the agreements.

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was summarized according to the foreign currencies other than the functional currency of the entities in the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:

Financial assets Monetary items USD JPY INR CNY EUR Financial liabilities Monetary items USD JPY EUR INR Financial assets Monetary items USD JPY INR EUR CNY	March 31, 2026
	Foreign Currency Exchange Rate Carrying Amount $ 1,145,706 31.986 $ 36,646,556 3,463,662 0.2004 694,118 79,370 0.3374 26,779 3,328 4.63 15,408 309 36.69 11,349 254,013 31.986 8,124,853 2,036,047 0.2004 408,024 1,199 36.69 44,009 3,358 0.3374 1,133 December 31, 2025
	Foreign Currency Exchange Rate Carrying Amount $ 619,367 31.436 $ 19,470,419 2,873,403 0.2008 576,979 101,940 0.3497 35,649 698 36.89 25,756 3,320 4.50 14,940 (Continued)

43 -

Financial liabilities Monetary items USD JPY EUR INR Financial assets Monetary items USD JPY EUR CNY INR Financial liabilities Monetary items USD JPY EUR INR	December 31, 2025
	Foreign Currency Exchange Rate Carrying Amount $ 278,598 31.436 $ 8,757,998 1,998,270 0.2008 401,253 511 36.89 18,862 3,209 0.3497 1,122 (Concluded) March 31, 2025
	Foreign Currency Exchange Rate Carrying Amount $ 689,391 33.185 $ 22,877,428 4,926,349 0.2224 1,095,620 975 35.92 35,007 3,298 4.58 15,106 6,984 0.3884 2,713 359,150 33.185 11,918,396 1,657,500 0.2224 368,628 358 35.92 12,869 5,581 0.3884 2,168

For the three months ended March 31, 2026 and 2025, the amounts of realized and unrealized net foreign exchange gain were $458,861 thousand and $209,884 thousand, respectively. Since there were varieties of the foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

34. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others: None.
2) Endorsements/guarantees provided: None.
3) Significant marketable securities held (excluding investments in subsidiaries): None.
4) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Table 1.
44 -
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
6) Others: The business relationship between the parent and the subsidiaries and significant transactions between them: Table 2.
b. Information on investees: Table 3.
c. Information on investments in mainland China:
1) The name of the investee company in mainland China, main business items, paid-in capital, investment methods, capital remittances and reductions, shareholding ratio, investment gains and losses, investment book value at the end of the period, repatriated investment gains and losses, and investment limits in mainland China: None.
2) The following major transactions, prices, payment terms, and unrealized gains and losses that occurred directly with the investee company in mainland China or indirectly via a third region: None.

35. SEGMENT INFORMATION

For the purpose of resources allocation and performance assessment, the chief operating decision maker of Powerchip Semiconductor and its subsidiaries reviews operating results and financial information on a product selling basis. As each product has similar economic characteristics and uses similar production processes to produce similar products, and all products are sold through a central sales function, the Company’s segments are aggregated into a single reportable segment.

The segment information provided by the Company to the chief operating decision maker is consistent with the consolidated financial statements. Therefore, the segment revenues and operating results for the three months ended March 31, 2026 and 2025 are referred to the consolidated statements of comprehensive income for the three months ended March 31, 2026 and 2025. The segment assets as of March 31, 2026, December 31, 2025 and March 31, 2025 are referred to the consolidated balance sheets as of March 31, 2026, December 31, 2025 and March 31, 2025.

45 -

TABLE 1

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Powerchip Semiconductor	Deutron Electronics Corp.	Substantive related parties	Sale	$ 233,322	1.72	Note	$ -	-	$ 78,734	1.16

Note: Mainly paid on the 60th day for monthly settlement.

46 -

TABLE 2

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Trader	Transaction Party	Relationship (Note 1)		Transaction Details	Transaction Details
			Accounts	Amounts	Transaction Terms	Rate of Total Revenue or Total Assets
Powerchip Semiconductor	PSMC Japan	1	Research and development expenses	$ 28,109	Note 2	0.21%

Note 1: No. 1 represents the transactions from parent company to subsidiary.

Note 2: The specifically negotiated terms were not comparable to those with external customers.

47 -

TABLE 3

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Inves	tment Amount	As o	f March 31, 2	026	Net Income (Loss) of the Investee	Share of Profit (Loss)
				March 31, 2026	December 31, 2025	Number of Shares (In Thousands)	%	Carrying Amount
Powerchip Semiconductor	PSMC Japan Maxram	Japan Japan	Development and sales of semiconductor and electronic components Development and sales of semiconductor and electronic components	$ 703,165 22,415	$ 703,165 22,415	500 800	100.00 100.00	$ 13,463 8,757	$ 3,517 (186)	$ 3,517 (186)

48 -

AI assistant

PSMC — Interim / Quarterly Report 2026

52625_rns_2026-05-05_77d031eb-70b8-49c5-bbd8-9fa3bd3212c5.pdf

Powerchip Semiconductor Manufacturing Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Conclusion

Notice to Readers

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

POWERCHIP SEMICONDUCTOR MANUFACTURING CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

b. Basis of preparation

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT AMORTIZED COST

8. ACCOUNTS RECEIVABLE

March 31, 2025

9. INVENTORIES

10. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements

11. PROPERTY, PLANT AND EQUIPMENT

12. LEASE ARRANGEMENTS

b. Lease liabilities

d. Other lease information

13. INTANGIBLE ASSETS

14. PREPAYMENTS AND OTHER ASSETS

16. OTHER PAYABLES

17. GUARANTEE DEPOSITS AND OTHER CURRENT LIABILITIES

18. PROVISIONS

19. RETIREMENT BENEFIT PLANS

20. EQUITY

a. Share Capital

1) Ordinary shares

2) Issuance of GDRs

b. Capital surplus

c. Retained earnings and dividends policy

d. Other equity items

21. REVENUE

22. NET INCOME (LOSS)

a. Other operating income and expenses, net

b. Interest income

c. Other gains and losses

d. Finance costs

f. Employee benefits expense

g. Employees’ compensation and remuneration of directors

23. INCOME TAXES

b. Income tax assessments

24. EARNINGS PER SHARE (LOSS)

Unit: NT$ Per Share

25. SHARE-BASED PAYMENT ARRANGEMENTS

26. GOVERNMENT GRANTS

27. CASH FLOW INFORMATION

28. CAPITAL MANAGEMENT

29. FINANCIAL INSTRUMENTS

1) Market risk

a) Foreign currency risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

March 31, 2026

Additional information about the maturity analysis for financial liabilities

PSMC Interim / Quarterly Report 2026