Powerchip Technology and Rexchip Electronics saw their October 2010 revenues decline over 20% on month.

Powerchip announced revenues slid 22% on month to NT$5.86 billion (US$194 million) in October. Revenues for the first 10 months of 2010 totaled NT$73.4 billion.

Powerchip said it is speeding up the migration to a 45nm process in order to lower its manufacturing costs by 20%. The company added it has installed a new immersion lithography scanner designed for 12-inch wafers at the 40nm-class node and beyond.

Rexchip, Powerchip's joint venture with Elpida Memory, has reported revenues of NT$3.44 billion for October, down 25% sequentially. The JV accumulated NT$43.09 billion in revenues from January to October.

In other news, industry observers have expressed caution about the outlook for SDRAM demand in the fourth quarter of 2010, and whether PC replacement demand from the enterprise sector will emerge at year-end is still uncertain. DRAM quotes for the fourth quarter are set to continue trending downward, according to the observers.

Spot market prices for branded 1Gb DDR3 now average about US$1.60, while same-density effectively tested (eTT) parts are quoted at US$1.50. Both levels are already close to the cost levels of suppliers using 63nm processes.

By: DocMemory
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