Rexchip Electronics is expected to post its second straight quarterly profit in the second quarter of 2011, the only DRAM chipmaker from Taiwan to do so, according to market watchers.
Fellow DRAM companies Nanya Technology and Inotera Memories may continue suffering net losses in the second quarter despite their process transitions to a 4Xnm node, the watchers indicated. But losses are likely to narrow from those registered in the prior quarter.
Rexchip swung to net profits of NT$1.83 billion (US$63.6 million) in the first quarter from losses of NT$1.82 billion in the previous fourth quarter of 2010. The return to profitability was thanks to the company's smooth transition to a 40nm-class process.
Rexchip converted all of its chip production to 45nm process technology at the end of 2010, which has boosted its total capacity to more than 85,000 12-inch wafers a month. The company has recently unveiled plans to move to a 30nm-class node in July, and expects to carry out another process transition by year-end 2011.
Rexchip is a 64%-held subsidiary of Elpida Memory, using the Japan-based vendor's process designs to make DRAM chips on an OEM basis.
The cash cost for 2Gb DDR3 built using a 4Xnm process now stands at US$1.50, and ramping up output using 30nm will further drag down the cash cost to as low as US$1.10-1.20.