Powertech Technology (PTI) and Walton Advanced Engineering will see their capacity utilization rates and shipments remain high in the third quarter thanks to strong market demand for mobile RAM chips.

In line with rising demand for mobile RAM, PTI and Walton both have mapped out plans to reduce the ratio of DRAM sales to their total revenues, said the sources, adding that PTI aims to lower DRAM revenues to 35% of its total sales in 2013.

The focus on mobile RAM will also help raise PTI's gross margin and operating margin to 15% and 10% respectively in the second quarter of 2013, the sources estimated.

Walton's capacity utilization rate for specialty DRAM is expected to hike to over 90% in the third quarter compared to 75-80% in the prior quarter, said the sources.

Walton is likely to reduce the ratio of commodity DRAM to its total sales to 10-20% in the second half of 2013 compared to 40-50% in the first half, added the sources.

By: DocMemory
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