Memory module maker Kingston Technology Corp aims to boost revenues in the Asia-Pacific region by between 5 percent and 10 percent next year amid improving demand and stabilizing chip prices, an executive said yesterday.
Demand started recovering in the Asia-Pacific region this summer as economies such as China led the world in pulling out of recession, Scott Chen (陳思軻) told reporters at a luncheon yesterday.
Helped by the earlier recovery, Kingston could see revenues in the Asian market jump to US$1.1 billion this year, up about 22 percent from last year’s US$900 million, Chen said.
“We are lucky that business is back on track in the second half of the year as China and India began recovering from the financial crisis in May or June,” Chen said.
Shipments could rise by between 45 percent and 50 percent year-on-year this year, he said, adding that revenue growth would be capped by falling prices.
China accounts for about 40 percent of the company’s revenues in the Asia-Pacific region.
Next year, emerging markets such as China and India will still be the driving force, Chen said. He said an annual growth of between 5 percent and 10 percent would be a conservative goal for next year.
Chen was optimistic about the dynamic random access (DRAM), sector.
Chip prices could stabilize next year on improving demand and limited capacity, which could help bring supply and demand to parity, Chen said, sharing the views of most DRAM makers including Japan’s No. 1 memory chipmaker Elpida Memory Inc.
He said supply constraints could occur sporadically.
Kingston, headquartered in Fountain Valley, California, was founded by Taiwanese David Sun (孫大衛).
Kingston is keeping close ties with Taiwanese memory companies. In July, Kingston agreed to lend US$125 million to cash-strapped Powerchip Semiconductor Corp (力晶半導體), the nation’s No. 2 DRAM maker.
RSS