Local chipmaker Powerchip Technology Corp (力晶) improved its ranking by one notch to No. 5 among the world’s computer memory chipmakers in the first quarter by revenues, market researcher iSuppli Corp said, propelled by a spike in output as well as a better product mix.
Powerchip increased revenues by 80.8 percent to US$432 million from US$239 million in the final quarter of last year, riding on a strong rebound for memory chips, statistics compiled by iSuppli show.
That has helped Powerchip expand its market share to 4.6 percent from 2.8 percent during the same time period, exceeding local competitor Nanya Technology Corp’s (南亞科技) 4 percent share.
Nanya Technology’s output halved in the first quarter because it was in the process of migrating to next-generation technology, a move that is expected to be completed this quarter.
“Powerchip’s astounding rise is due to a significant increase in output and an improvement in product mix, which lifted its average DRAM selling price,” said Mike Howard, senior iSuppli analyst for computer memory chips (DRAM), in the report, which was dated Friday.
While the company was still small compared to top players, “Powerchip has a lot of available wafer capacity and, if matched with the right technology, can be a serious competitor in the global DRAM market,” Howard said.
Revenues of global DRAM companies rose by 8.8 percent quarter-on-quarter to US$9.43 billion, the research firm said.
Samsung Electronics Co, Hynix Semiconductor Inc and Elpida Memory Inc were ranked first, second and third respectively.
iSuppli expected to see an end to the fast growth in the overall DRAM market over the past few quarters because of weakening chip price and rebounding output from the low level last year.
The contract price of benchmark DDR3 DRAM fell 2.94 percent to average US$2.41 in the first half of this month from 2 weeks ago, a survey by Taipei-based researcher TrendForce Corp (集邦科技) found.
However, no upheaval is expected in the sector because no manufacturer has significant new capacity coming online except for Samsung, whose additions would only further cement its top position, TrendForce said.
With capital expenditures in the memory market north of US$7.8 billion, Samsung would far outspend its competitors, many of which appear reluctant to commit to any rapid additional spending, TrendForce said.
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