Constantly changing supply and demand for DRAM and the introduction of ever more advanced chips have presented a tremendous challenge for module makers as they struggle to produce high-performance products at the most competitive cost. The rollouts of innovative modules, supported by a steady source of supply from eight of the world¡¯s largest DRAM manufacturers, are key to the success of Kingmax Semiconductor Inc., which strives to be a leader in memory technologies.

In the view of Lawrence Chang, deputy manager of Kingmax, DRAM, which stands for dynamic random-access memory, is the "rice" in the PC food chain you can't live without it. However, the industry is characterized by up and down cycles, causing dramatic price fluctuations resulting in shifting of supply and demand. Capacity adjustments made by chipmakers may therefore create trouble for downstream module makers as their supply runs low. Kingmax, as opposed to its competitors, has long operated under the strategy of working with eight of the world's largest DRAM chipmakers, which together account for 90 percent of the global market, in a practice that ensures a steady source of supply. Working with just one or two suppliers may put the module maker under the risk of a supply shortage should the upstream chipmaker decide to cut down the production capacity.

"That has happened to some of our competitors," Chang says. The deputy manager, who has 14 years of experience in the industry and has worked for Synnex and Samsung's Taiwan operations, believes success for module makers involves more than signing deals with suppliers. A company must achieve a certain level of vertical integration where a module maker does the dicing, testing and packaging all by itself to guarantee the products at the highest quality.

That's what Kingmax has done over the years through three of its affiliate firms namely: Kingpak Technology Inc., Kingmax Digital Inc. and Supermax Technology Inc. allowing the company to develop a vertically integrated operational model and control the entire production process, from the dicing of wafers provided by the eight suppliers to the chips' packaging. In fact, Kingmax was the first in the industry to use four Advantest testing equipment on its production line, and the first to apply the so-called BGA packaging technology to module manufacturing. The end result of such application is the production of what the company refers to as "Tiny BGA" modules that are smaller yet more powerful than those made with the so-called TSOP technology. "For a module made with the same chips, a BGA one will be tinier but with higher memory capacity," Chang says.

Products Kingmax plans to take to COMPUTEX TAIPEI 2004 will come from the following module lines -- hardcore, Tiny BGA and super RAM. A unique feature of the modules is that the molding was done with different colors, instead of the black color that the users have grown used to. Meanwhile, rampant counterfeiting in the mainland Chinese market has prompted Kingmax to design an anti-counterfeit device on the module -- another feature that sets the company's products from other brands. Speaking on COMPUTEX TAIPEI, Chang says the show has become one of the most important -- if not the most important -- trade events in the world, and the company will exhibit the best of its products at the show. "I can't wait to talk to all the buyers, especially those from development markets, which present huge business opportunities for us," Chang says.

By: DocMemory
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