DRAM memory makers Powerchip Technology and Rexchip Electronics have both swung to net losses in 2011 from profits a year earlier.
Powerchip posted net losses of NT$8.67 billion (NT$299 million) in the fourth quarter, compared to losses of NT$6.78 billion in the third. The company attributed the negative result to falling chip prices, its intentional output cuts led to idle capacity costs as well as recognized losses from affiliate Rexchip.
Incorporated as a joint venture between Elpida Memory and Powerchip, Rexchip is now an Elpida consolidated subsidiary after the Japan vendor acquired a larger stake.
Rexchip also saw its fourth-quarter net losses widen from the prior quarter's level. The firm reported NT$5.34 billion in net losses for the last quarter of 2011 compared to losses of NT$3.28 billion in the third quarter.
In all of 2011, Powerchip's and Rexchip's net losses amounted to NT$22.13 billion and NT$6.25 billion, respectively.
Powerchip has reiterated plans to shift its business focus away from PC DRAM. Powerchip spokesperson Eric Tang pointed out that sales of the company's non-PC DRAM product segments accounted for more than 60% of its overall revenues in the fourth quarter of 2011, up from 20% in the first quarter.
Powerchip said previously the contribution to revenues of its PC DRAM business would contract to 20% or even less sometime in 2012. The company is dedicating more efforts to the production of its in-house developed NAND flash, niche-market DRAM products and foundry services.