Thu, Feb 10, 2011 - Page 11 News List

Powerchip’s sales plunge last month to 15-month low

By Lisa Wang  /  Staff Reporter

Local computer memory chipmaker Powerchip Technology Corp (力晶科技) yesterday posted its weakest monthly sales in 15 months as prices dropped from an oversupply.

Sales plunged almost 43 percent to NT$3.41 billion (US$118.5 million) last month, from NT$5.93 billion in January last year, marking the lowest monthly total since September of 2009, during which sales totaled NT$3.31 billion.

However, Powerchip spokesman Erice Tang (譚仲民) said the company’s revenues would improve this quarter because rebounding demand was helping boosting chip prices and costs would continue to improve with rising output of PC memory chips using 40-nanometer technology, a company statement said.

The price of benchmark PC memory chips jumped 3.75 percent to average US$2.08 per unit, according to Taipei-based market researcher TrendForce Corp (集邦科技).

Tang expected supply constraint to occur in the second half of the year as “orders are visibly high in the second half of the year in terms of its foundry business,” which could force the company to shift more capacity to foundry business from PC memory chips.

Powerchip was set to start increasing production of NAND Flash, another type of memory chips, which would add pressure to the chipmaker to increase the supply of its PC memory chips to customers.

In the statement, Powerchip dismissed a media report that the chipmaker planned to sell an advanced 12-inch.

Powerchip shares slid 2.76 percent to NT$6.7 yesterday.

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