Powerchip Technology and Rexchip Electronics have both swung to net losses in 2011 from profits a year earlier.

Powerchip posted net losses of NT$8.67 billion (NT$299 million) in the fourth quarter, compared to losses of NT$6.78 billion in the third. The company attributed the negative result to falling chip prices, its intentional output cuts led to idle capacity costs as well as recognized losses from affiliate Rexchip.

Rexchip also saw its fourth-quarter net losses widen from the prior quarter's level. The firm reported NT$5.34 billion in net losses for the last quarter of 2011 compared to losses of NT$3.28 billion in the third quarter.

In all of 2011, Powerchip's and Rexchip's net losses amounted to NT$22.13 billion and NT$6.25 billion, respectively.

Powerchip has reiterated plans to shift its business focus away from PC DRAM. Powerchip spokesperson Eric Tang pointed out that sales of the company's non-PC DRAM product segments accounted for more than 60% of its overall revenues in the fourth quarter of 2011, up from 20% in the first quarter.

By: DocMemory
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