Elpida Memory began to cut its DRAM output by 20-25% from the third quarter of 2011, and Nanya Technology, Samsung Electronics and Hynix Semiconductor have been reducing their wafer start orders for commodity DRAM parts.

PTI, a major backend service provider for Elpida, has minimized the impact of capacity cuts by reducing its sales ratio for standard DRAM chips, while also modifying its WBGA production lines to enable production of logic ICs and NAND flash parts, according to company chairman DK Tsai.

Walton is conservative about the business outlook for the backend memory industry and is currently focusing on orders from Winbond Electronics. Standard DRAM chips currently account for 50% of its total revenues, and niche memory ICs and mobile RAM chips make up 40% and 10%, respectively.

Taiwan-based memory backend service providers are also conservative about the packaging/testing development agreement signed recently between Hynix and Italy-based EEMS, given uncertainty about Hynix orders to EEMS under the current market conditions

By: DocMemory
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