Inotera Memories, Nanya Technology, Powerchip Technology and ProMOS Technologies are set to all remain unprofitable in the first quarter of 2011, while Rexchip Electronics will likely report profits thanks to its transition to 45nm process technology, according to market watchers.
Among all major Taiwan-based DRAM chipmakers, only Rexchip managed to make profits in the first quarter of 2011, the watchers predicted. The company's shift to a 45nm process has helped lower its production costs, the watchers said, adding that ramping chip output using the node has dragged down the cash cost for 2Gb DDR3 to as low as US$1.50.
In addition, Rexchip is set to volume produce 38nm chips starting the second half of 2011, the watchers indicated. The move will contribute further to the company's profitability with the cash cost for 2Gb chips reaching US$1.10-1.20, the watchers said.
Inotera and Nanya may report a combined loss of NT$12-13 billion (US$412-447 million) for the first quarter of 2011, the watchers said. Nanya's first-quarter net losses are estimated at NT$8.5-9 billion, and Inotera's at NT$3.5-4.5 billion. However, both estimated figures show improvement compared to their larger losses in the fourth quarter of 2010, according to the watchers.
Both Nanya and Inotera declined to comment on the speculation. The pair will hold an investors conference on April 20 to discuss their performance for the first quarter and business outlook.
Powerchip is likely to report more than NT$5 billion in first-quarter net losses, the watchers estimate. The company swung to net losses of NT$8.33 billion in the fourth quarter of 2010, ending four straight quarters of profits.
Meanwhile, ProMOS's losses for the first quarter are estimated at NT$3-4 billion, the watchers said. ProMOS swung to net losses in the second quarter of 2007, and has remained unprofitable since.