Powerchip Semiconductor Corp (力晶半導體), Taiwan's third-largest memory-chip maker, expects this year's revenue to double compared to last year due to a sharp growth in chip output and cost saving efforts, a company official said yesterday.
Powerchip swung to profitability by eking out NT$169 million in after-tax earnings, or NT$0.06 a share, last year, thanks to effective cost savings as a result of the operation of its more efficient 12-inch wafer production plant or fab during the second half of last year, company spokesman Eric Tang (
PHOTO: AP
Powerchip said its revenues for last year rose to NT$22.9 billion from NT$12.7 billion in 2002.
Looking forward, Powerchip chairman Frank Huang (
"Powerchip's 2004 output is expected to grow by at least one fold, compared to that of last year," Huang added.
Infineon Technologies AG, the world's sixth-largest semiconductor company, also said yesterday it is confident the industry is moving in the right direction. Price volatility is becoming less drastic as memory chips extend to communications and other devices from PCs, said Loh Kin Wah, who runs Infineon's Asia Pacific operations.
Experience has taught industry analysts to be more cautious, although they agreed local chipmakers will enjoy a profitable year.
"We did see chip demand, but it comes merely from retailer inventory build-up, not from end users," Wang Bou-li (
Without solid demand, DRAM prices will remain weak in the first half of the year, Wang said. He predicted the DRAM spot price would fall to US$3.5 in the second quarter from US$3.84 in the fourth quarter of last year. Powerchip sells a big portion of its chips on the spot market.
"Despite the price decline, Powerchip will outperform its bigger local rivals including Nanya Technologies Corp (
Sharing a similar view with Wang, Liu Szu-liang (
Powerchip shares soared by 6.1 percent to close at NT$20.7 each yesterday on the TAIEX yesterday.
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