With Micron Technology having reporting losses for five consecutive quarters, the memory maker is expected to outsources more NAND flash packaging orders. Currently, Micron still uses its own capacity for packaging, but it will gradually outsource orders.

ChipMOS Technologies had been the major backend partner for Micron's packaging orders, with industry watchers estimating that more than 10% of ChipMOS' revenues come from Micron orders. The partnership was limited to DRAM packaging before the third quarter of 2007. But starting from the fourth quarter of 2007, Micron also outsourced NAND flash orders to ChipMOS.

However, Siliconware Precision Industries (SPIL) has also seen its role with Micron for DRAM and flash packaging increase since the first quarter this year and the shipments have continued to increase. The sources noted that Micron's order volumes to SPIL are now similar to its volumes with ChipMOS. As Micron has extended its presence to finished memory card, the sources added that SPIL has secured the corresponding backend orders from Micron.

Following Micron's establishment of a joint venture with Nanya Technology (MeiYa Technology), Formosa Advanced Technologies Company (FATC) may have also received small orders for DRAM packaging from Micron as well, the market sources added.

The sources also indicated PowerASE, the jointly-established memory packaging and testing house between Advanced Semiconductor Engineering (ASE) and Powerchip Semiconductor Corporation (PSC), may also start landing packaging orders from Micron in the second half of 2008. But the sources did not reveal further details.

Micron's latest quarterly net losses (quarter ending May 29, 2008) were US$236 million, an improvement from the US$777 million it lost the previous quarter, though a slightly worse result than the US$225 million loss it reported one year earlier during the same period. The sources noted that Micron has been suffering from a continued sluggish DRAM market and falling chip prices.

By: DocMemory
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