Powerchip Semiconductor Corporation (PSC) has no plans for any capacity expansion next year, according to company chairman Frank Huang.

PSC will allocate NT$10 billion (US$305.44 million) for its 2009 capital expenditure (capex) chiefly to shrink its technology processes, Huang said.

PSC announced huge losses of NT$15.02 billion (US$458.77 million) for the third quarter, a sum which was even bigger than its total revenues of NT$14.97 billion for the period.

Huang said the company had expected the DRAM market to return to a balance between demand and supply in the third quarter, but the global financial crisis continued to plunge down DRAM prices.

With PSC and its competitors cutting back production, Huang said the DRAM industry should have seen the worst by the third or fourth quarter.

The DRAM industry has learned its lesson of being too optimistic, the PSC chairman said, adding that makers will be more cautious in planning capex in the future. He said the DRAM industry will stabilize, but it will no longer offer explosive growth.

By: DocMemory
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