Powerchip Technology Corp (力晶科技), the nation’s top computer memorychip maker, yesterday reported its lowest monthly sales in 14 months as a decline in chip prices deepened because of persistent oversupply.
The Hsinchu-based company decided to postpone payment to its major chip supplier, Rexchip Electronics Inc (瑞晶電子), to strengthen its cash position, spokesman Eric Tang (譚仲民), said in a statement.
To cut losses, Powerchip suspended Rexchip orders, Tang said.
“The companies are negotiating a [new] supply deal,” Tang said.
Powerchip owns a 34 percent share in Rexchip, while Japan’s biggest memorychip company, Elpida Memory Inc, has a 64 percent stake.
The company said last month’s sales fell 8.33 percent, to NT$3.44 billion (US$118 million), from NT$3.88 billion in November, setting their lowest level since last September.
On an annual basis, that represented a decline of more than 35 percent from NT$5.52 billion.
Market researcher Gartner Inc forecast that the price of benchmark computer memorychips, or dynamic random access (DRAM) chips, would plunge more than 35 percent in the fourth quarter of last year from the third -quarter due to severe oversupply.
On Nov. 27, Powerchip said it was seeking a rollover of NT$40 billion in bank loans to keep more capital for operation.
Yesterday, Powerchip said it was scheduled to mass produce cost-efficient DRAM chips using advanced 40-nanometer technology later this quarter.
Local rivals Nanya Technology Corp (南亞科技) and Inotera Memories Inc (華亞科技), Nanya’s local DRAM venture with US memory chipmaker Micron Technology Inc, yesterday said last month’s sales rose 2.2 percent and 15.6 percent to NT$4.05 billion and NT$3.12 billion, respectively, as an increase in shipments offset the fall in price.
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