Memory backend specialist Orient Semiconductor Electronics (OSE) has seen demand for flash memory products ramp up recently, and is expected to post sequential revenue growth through the third quarter, according to industry sources.

Kingston Technology, Longsys Electronics and Phison Electronics are reportedly among OSE's major clients.

OSE is expected to post a single-digit sequential increase in second-quarter revenues, said the sources, adding that the backend firm has seen its capacity utilization rate reach 70-80%.

OSE is also engaged in the supply chain for Nintendo's Switch through providing Macronix International backend services for flash products, the sources indicated. With the game console reportedly to hit market shelves in China, OSE is among the beneficiaries.

OSE declined to comment on the report, citing customer confidentiality.

OSE reported consolidated revenues of NT$1.37 billion (US$44.5 million) for March 2019, up 17.3% sequentially and 16.8% on year. Revenues for the first quarter totaled nearly NT$3.9 billion, rising 24.1% from the same period in 2018.

OSE posted revenues increased 9.4% to NT$15.19 billion in 2018, when the company remained unprofitable. Nevertheless, the company saw its net losses narrow to about NT$111 million from losses of NT$714 million in 2017.

By: DocMemory
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