Winbond Electronics, which has focused more on niche memory, will likely swing back to profitability in the fourth quarter of 2009 following losses for 10 consecutive quarters.

Winbond's net profits for November reached NT$267 million (US$8.27 million) with an EPS of NT$0.07 on revenues of NT$2.18 billion.

With DRAM prices rebounding, rivals Powerchip Semiconductor Corporation (PSC), Nanya Technology and Inotera Memories also began generating monthly profits in November.

Winbond was quoted in previous reports as saying its new graphics DDR (GDDR) product line would drive the company's sales growth in 2010. Winbond is on track to enter mass production for Elpida Memory's GDDR chips in the first quarter.

In addition, Winbond's foundry services for Elpida may extend to 2Gb DDR3 SDRAM. Elpida has noted it would transfer 40nm process technology to the foundry partner if market conditions encourage it to expand the chip's production to a higher level.

Winbond saw its share price soar 35% over the past couple of weeks to close at NT$9.14 on the Taiwan Stock Exchange (TSE) on December 29.

By: DocMemory
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