Rising specialty DRAM and NOR flash memory prices are set to boost net profits at Winbond Electronics in the second quarter of 2021, which are likely to more than double those generated in the prior quarter, according to market sources.

Winbond is also expected to post sequential profit increases through the fourth quarter of this year, as the trend for DDR3 and NOR flash chip prices is bullish, the sources said. The chipmaker is poised to report impressive profit growth for all of 2021, the sources added.

In addition to rising chip ASPs, the arrival of additional output through process technology transitions and production optimization will be buoying Winbond's profitability through the last quarter of this year, the sources indicated.

Winbond already saw its net profits jump over 300% on quarter to NT$1.59 billion (US$57.3 million) in the first quarter of 2021, when revenue hit a record high of NT$21.33 billion. Gross margin came to 37.56%, rising 7.16pp sequentially and 13.43pp from the same period in 2020.

Winbond has expanded monthly output at its 12-inch plant in Taichung, central Taiwan to about 57,000 wafers, up from the previous 54,000 units, the company was quoted as saying in previous reports. The company is also ramping up its specialty DRAM output built using the second generation of its in-house developed 25nm process technology.

In addition, Winbond is constructing a new 12-inch wafer fab in Kaohsiung, southern Taiwan, which is scheduled to come online in the first half of 2022, according to the company. Monthly output at the new fab will reach 9,000 wafers initially, and will climb to 270,000-30,000 units when capacity is fully utilized.

By: DocMemory
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