Rexchip Electronics will allocate 50% of the production capacity at its 12-inch fab for mobile RAM before June 2013 due to strong demand from the smartphone sector. Rexchip managed to swing back to profitability in February and is expected to stay profitable for the first quarter, according to industry sources.

Rexchip is currently producing PC DRAM and mobile RAM at its 12-inch fab using a 30nm process, and its profitability has improved since the end of 2012 when the prices of standard DRAM chips began to bottom out, said the sources.

Rexchip's monthly revenues reached NT$2.63 billion (US$88.58 million) in February, up 6.9% sequentially and 52.9% on year. For the January-February period of 2013, revenues amounted to NT$5.09 billion, increasing 26.3% from a year earlier.

While the production of mobile RAM yields more profits, contract quotes for PC DRAM are also likely to be adjusted higher month-on-month in the second quarter of 2013, which will further improve profitability at Rexchip, commented the sources.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved