Persistent weak DRAM pricing has prompted more DRAM makers to offer their chips in effectively tested (eTT) form, meaning reducing demand and weakening sales at testing houses.

Following Elpida Memory's increase in its eTT sales proportion, Taiwan DRAM makers are also following suit and ramping up their sales proportion of eTT chips in order to minimize their production costs further, according to industry players. Among all Taiwan testing houses, Powertech Technology Incorporated (PTI) and Walton Advanced Engineering should see quarterly sales relatively flat, the players estimate.

Thailin Semiconductor, which has a relatively heavy sales contribution from Taiwan DRAM makers, is expected to have its quarterly sales only grow by 5%, versus the originally expected 7-10%. Company general manager Cho Lien-fa previously mentioned that DRAM prices might be unable to bottom out in June as expected.

Sluggish sales are also reflected in expansion. Thailin, which budgeted a capital expenditure (capex) of NT$1.5-2 billion (US$45-61 million) in 2007, has spent just NT$700-800 million in the first half of the year. Investment in the first half was mainly for adding two T5593 and T5588 testers and the company currently has no investment plans for the second half.

PTI is also delaying its expansion to the third quarter. The company, which originally planned to buy 16 T5593 testers in the second quarter, now expects to buy only six, with the remainder to be purchased in the third quarter.

By: DocMemory
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