Most Taiwan-based memory module makers are expected to post 5-10% growth in June revenues, according to market observers. Companies with more emphasis on flash products will likely enjoy higher growth than those focused on DRAM modules.
The memory module suppliers are holding a wait-and-see approach for the third quarter because the prospects for demand, especially in the DRAM market, are not clear, the observers indicated. Predictions for the third quarter, when the consumer electronics and PC markets enter their traditional high season, will still have to wait for further confirmation, the observers said.
Transcend Information will likely see its revenues return to a growth track in June after posting sequential declines for two straight months. Gross margin may be affected by recent falls in memory chip prices, but maintain at double digits thanks to the company's diversification efforts.
Transcend has diversified its products to include non-memory products such as digital photo frames and portable electronics devices. Transcend is also looking to grow sales generated from its high-margin industrial memory products significantly in 2011, the company was quoted as saying in previous reports. Currently, NAND flash products play the largest contributor to company revenues.
Power Quotient International (PQI) may see its consolidated revenues stay flat sequentially in June, while Apacer Technology's revenues are expected to increase about 10% on month.
Apacer has remarked that the development of its "value-added" products, which consist of industrial-control and embedded memory devices, will start bearing fruit this year. Sales of its standard memory module business are expected to account for less than 60% of company revenues by the end of 2011, the company said.
Phison Electronics, which is focused on NAND-based memory devices, is likely to post about 15% growth sequentially in June revenues, the observers estimated.