Sat, Nov 03, 2012 - Page 13 News List

Contract chipmaking business improves Powerchip’s sales

By Lisa Wang  /  Staff reporter

Local memorychip maker Powerchip Technology Corp (力晶科技) yesterday reported a 2.52 percent increase in revenues for last month as growth in the contract chipmaking business helped offset its struggling PC DRAM business.

Revenue expanded to NT$2.52 billion (US$886.26 million) last month, compared with NT$2.46 billion in September. That was 17 percent higher than the NT$2.15 billion posted a year ago.

“Because of sluggish demand for PC DRAM chips, Powerchip started cutting production,” company spokesman Eric Tang (譚仲民) said in a statement. “The contract chipmaking business is growing steadily. We will soon start shipping chips to new clients.”

“The increase in orders in the contract chipmaking business will effectively help ease the impact of sagging demand for DRAM chips and weak DRAM prices,” Tang said.

To further minimize the impact from a lack of demand for PCs and PC DRAM chips, Powerchip plans to expand its contract chipmaking business, the statement said.

Powerchip will be forced to delist its shares from the GRETAI Securities Market next month after its net value plunged to minus-NT$1.36 per share, after it reported a NT$13.17 billion loss in the first three quarters of this year.

Powerchip is the second local DRAM chipmaker after ProMOS Technologies Inc (茂德科技) which has been forced to delist from the market.

Shares in Inotera Memories Inc (華亞科技), a PC DRAM joint venture between US chip giant Micron Technology Inc and local memory chipmaker Nanya Technology Corp (南亞科技), were suspended after its net value fell to NT$4.75 a share, lower than its book value of NT$10 per share.

Powerchip shares are being delisted on Dec. 11. The shares plummeted 4.17 percent to NT$0.23 yesterday. Inotera shares plunged 6.74 percent to NT$3.46.

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