Taiwan-based Powerchip Technology expects to post a small loss for the second quarter of 2011 with a possibility of reaching a break-even, according to comany chairman Frank Huang.
Powerchip is set to reduce the ratio of PC DRAM chips to its total capacity to less than 50% by the end of 2011, while dedicating more focus on non-PC segments, said Huang.
Powerchip has allocated more capacity to produce LCD driver ICs for Renesas on an OEM basis, for example, Huang indicated. Monthly output for the orders placed by the Japan-based vendor is expected to reach 25,000-30,000 12-inch wafers at the end of 2011 from the current 15,000-20,000 units, Huang noted.
The company also contract-manufactures CMOS image sensors, specialty DRAM and NOR flash chips at its 12-inch fabs, which have a combined capacity of 120,000-130,000 wafers per month.
Powerchip is actively diversifying its business operations to cope with stagnant growth in the global conventional PC market, Huang pointed out. Apart from PC DRAMs, Powerchip's other product lines are actually profitable, Huang said.
Having shifted its commodity DRAM capacity to production for technology partner Elpida Memory on an OEM basis, Powerchip continues to produce own-brand mobile DRAMs for lightweight consumer electronics devices such as tablets and also handle sales of its own NAND flash memory.
Powerchip is transitioning NAND flash production to 40nm process technology from 75nm, and expects to start mass shipping 1.8V 4Gb NAND chips using the newer node at the end of 2011, according to Huang.
Powerchip experienced its second straight quarterly loss in the first quarter of 2011.