Powerchip Technology's revenues climbed by almost 10% sequentially in September 2011.

Powerchip registered NT$2.26 billion (US$75.8 million) in September revenues, up 9.63% on month. Revenues for the third quarter of 2011 amounted to NT$8.25 billion, however, showing a 30.6% decrease from the prior quarter.

Powerchip is sticking to its plans to reduce its commodity DRAM exposure, according to company spokesperson Eric Tang. Its foundry business has been steadily growing, and is expected to sustain growth momentum in the fourth quarter, said Tang.

Powerchip is set to reduce the ratio of PC DRAM to its total capacity to less than 50% by the end of 2011, while dedicating more efforts to production of non-DRAM products on an OEM basis such as LCD driver ICs, CMOS sensors and NAND flash chips, the company remarked previously.

Powerchip is looking to expand its OEM client base with more available capacities in-house, Tang indicated.

Powerchip now runs three 12-inch wafer fabs in Taiwan with a combined monthly capacity of 120,000-130,000 units. The company said previously that monthly capacity for PC DRAM products would decrease to about 40,000 units in the fourth quarter of 2011, from 80,000 originally.

A rebound in DRAM spot market prices also played another contributing factor to Powerchip's sequential sales rise in September, according to market observers. Production cutbacks at major Taiwan-based DRAM producers, including Powerchip, led to a modest recovery in prices during September.

Still, Powerchip is likely to remain unprofitable in the third quarter of 2011, affected by soft DRAM pricing, the observers estimated.

By: DocMemory
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