Rexchip Electronics Inc (瑞晶電子), which supplies PC memory chips to Japan’s top memory company Elpida Memory Inc, yesterday posted net profits of NT$12.58 billion (US$431 million) last year, making the company the most profitable PC memory chipmaker in Taiwan.
Rexchip, a joint venture between Elpida and Taiwan’s Powerchip Technology Corp (力晶科技), reported losses of NT$2.37 billion in 2009 during the memory industry’s severest slump, according to a company filing to the Taiwan Stock Exchange.
As of the end of last year, Rexchip generated NT$32.79 billion in cash from its operations, the filing said.
After deducting net profits of NT$14.4 billion in the first three quarters, Rexchip lost NT$1.82 billion in the final quarter of last year, but still out-performed its local rivals, including parent company Powerchip and the nation’s No. 2 PC memory chipmaker, Nanya Technology Corp (南亞科技).
Powerchip and Nanya posted fourth-quarter losses of NT$8.33 billion and NT$10.12 billion respectively, after chip prices plunged 50 percent quarter-on-quarter.
To minimize the impact of the volatile DRAM industry, Powerchip and Nanya said they were diversifying into non-PC memory business, including memory chips used in PC servers and mobile phones.
By the end of this year, Nanya aimed to increase non-PC DRAM to between 35 percent and 40 percent of its total revenues. Powerchip said it hoped to make half of its revenues from niche memory chips and from foundry business.
Separately, Nanya said sales last month fell 15 percent to NT$3.44 billion, compared with NT$4.05 billion in December. On an annual basis, the result meant a 27 percent decrease from NT$4.72 billion in January last year.