Taiwan's Powerchip Semiconductor Corporation (PSC) has posted revenues of NT$1.02 billion (US$32 million) for March, down 21% on-month and down 78% on-year, with company spokesperson Eric Tan attributing the sequential drop to continued production cutbacks amid falling DRAm prices.

It is the second month in a row that PSC has seen revenues decline. Its accumulated sales for the first three months of 2009 totaled NT$3.9 billion, a decrease of 74% from the same period of 2008.

Tan said DRAM selling prices have remained below cash costs.

PSC cited Samsung Electronics and Hynix Semiconductor as believing that there is a good possibility that a shortage may take place in the near term. The computer-memory specialist has been cutting amid the ongoing oversupply. Production will increase once the DRAM market rebounds, the company noted.

In response to speculations that PSC has stopped paying its suppliers, the company said via a company filing with the Taiwan Stock Exchange (TSE) that it has negotiated payment schemes with suppliers.

In related news, DRAM contract prices remain unchanged in the first half of April, according to DRAMeXchange. The average contract price of 1GB DDR2-667 modules stands at US$8.5 and 2GB DDR2 modules at US$17, while the contract price of 1Gb DDR2-667 chip is flat at US$0.88.

By: DocMemory
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