Winbond Electronics is expected to return to profitability as early as the second quarter of 2013, thanks to a more favorable cost structure and product mix, according to market watchers.

Winbond has stepped up efforts to transition to more advanced process technology for the manufacture of NOR flash and specialty DRAM (SDRAM) chips, which will help it to significantly improve production costs in 2013, the watchers believe.

NOR flash chips built using a newer 58nm process accounted for more than 20% of Winbond's overall flash revenues in the fourth quarter of 2012, up from 15% in the prior quarter. Meanwhile, more than 25% of Winbond's total SDRAM revenues were generated from sales of 46nm chips, compared to 20% in the third quarter.

In addition, Winbond has diversified and enhanced its flash and niche-market DRAM offerings allowing the chipmaker to extend its market reach beyond consumer electronics, the watchers observed.

Taking SDRAM as an example, Winbond has expanded the product line to include high-margin products for automotive, industrial and gaming applications

By: DocMemory
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