Memory chip maker Winbond Electronics Corp (華邦電子) said on Saturday that it had decided to raise its capacity expenditure by NT$1.51 billion (US$52.4 million) to boost NOR flash chip production.
The company’s board of directors has approved the spending increase, and of the NT$1.51 billion, about NT$1.09 billion will be used this year, with the remainder to be spent next year.
The rise in spending is expected to boost Winbond’s total capacity expenditure to about NT$5 billion for this year, the company said.
Winbond expressed optimism about the market outlook for NOR flash chips and said it plans to raise the monthly production capacity to 16,000 units from the current 14,000 units by the end of the fourth quarter.
Market observers said that demand for this particular memory chip exceeds supply and that product prices are on the rise.
In addition to NOR flash chips, Winbond’s products include DRAM chips and IC memory chips.