Friday, April 22, 2005
Despite its first-quarter earnings plummeted to the lowest level in four quarters, the island's biggest memory chipmaker Powerchip Semiconductor Corp. shows no sign to slow down its pace of consolidating its leading role as a top DRAM maker not only in Taiwan but also in the global IT industries. Its strategies: moving into DDRII contracting market in the later half of the year and becoming the first Data Flash manufacturer in Taiwan by the third quarter.
Powerchip's chairman Frank Huang said yesterday that the pricing of DDRII has slid over poor production rate, given the sluggish market demand. But he added, as DDRII is expected to become the market mainstream as soon as next month, Powerchip will turn its full power on to expand its market. Currently, Powerchip has delivered DDRII samples several OEM companies, including Dell, Asustek, and Acer.
According to the company, its third quarter's goal is to make DDRII count for 40% of its shipment and 60% for the fourth quarter. Moreover, it will start volume production on Data Flash with a quarterly production of 2,000 to 3,000 pieces. Huang said confidently that he expects a recovery to occur in the third quarter as the market demand will shift from the current DDRI memory chips to higher density DDRII chips. Hence, the company's operation will remain profitable.
By: DocMemory
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