Elpida Memory Inc, the world’s No. 3 maker of computer memory chips, plans to buy all of Powerchip Technology Corp’s (力晶科技) DRAM semiconductors as the companies deepen their partnership to compete against Samsung Electronics Co.
Powerchip could dedicate all its DRAM production capacity to Tokyo-based Elpida starting as early as April, Tokyo-based Elpida president Yukio Sakamoto said in an interview yesterday.
Sakamoto said in October last year he’s considering buying shares of Taiwanese chipmakers to increase capacity and compete with Samsung, the world’s biggest maker of chips that help PCs juggle multiple programs.
Powerchip and Elpida formed Rexchip Electronics Corp (瑞晶電子) in 2006 to make DRAM chips in Taiwan.
Powerchip, Taiwan’s largest memory chipmaker, said yesterday it would transition to becoming a chip foundry this year as the model will provide stable operating profit, while reporting its biggest loss in six quarters after prices fell.
The company’s NAND flash and foundry businesses will account for more than 50 percent of production by year’s end, the statement said.
Powerchip will shift from a “PC orientation” to smartphones, chairman Frank Huang (黃崇仁) said at a press briefing.
Fourth-quarter net loss was NT$8.33 billion (US$287 million), compared with profit of NT$1.6 billion a year earlier, the Hsinchu-based company said. The loss was wider than both analyst estimates compiled by Bloomberg.
Powerchip joins Nanya Technology Corp (南亞科技) and Inotera Memories Inc (華亞科技) in reporting deteriorating results after demand for the most common type of memory chip used in computers declined. The loss included a NT$4.3 billion inventory writedown, highlighting the cyclical nature of the industry, Powerchip said.
Revenue for the quarter was NT$13.3 billion, the company said. Capital spending will rise to NT$13 billion this year from NT$7 billion last year, Powerchip president Alex Wang (王其國) said. Powerchip had planned to spend NT$16 billion last year, he said.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
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