Powerchip Technology has reported revenues of NT$4.03 billion (US$141 million) for April 2011, up slightly from NT$4.01 billion in March. Its cumulative 2011 revenues through April, however, declined 42.1% from a year earlier to NT$14.96 billion.

Powerchip VP and spokesperson Eric Tang commented that quotes for standard DRAM chips have become more stable lately. In addition, Powerchip's foundry business has also been steadily growing, Tang said. With a closer tie with Elpida Memory, Powerchip is heading toward diversification, Tang noted.

Powerchip recently signed a cooperation agreement with Elpida under which Elpida will purchase all commodity PC DRAM products that Powerchip manufactures, including those rolled out by Rexchip Electronics. In return, Elpida will provide Powerchip with required process technologies for making the chips.

Elpida has also agreed to provide Powerchip access to its mobile DRAM technology. Powerchip said it will use Elpida's 63nm process to produce own-brand mobile DRAM products with mass production slated for the end of 2011.

"Combining self developed NAND technology, Powerchip is able to address the rapidly growing mobile application market, providing a complete memory product portfolio," the company said in a statement issued on April 26.

As part of Powerchip's diversification strategy, the company has also allocated more capacity to produce panel driver ICs and niche-market memory chips on an OEM basis. It aims to reduce the ratio of commodity DRAM to total capacity to below 50% by the end of 2011.

Powerchip posted net losses of NT$4.97 billion in the first quarter of 2011. The losses reduced by a notable 40% versus losses in the fourth quarter of 2010, thanks to improving chip prices and steady growth in the foundry business, according to the company.

By: DocMemory
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