Supply and demand in the DRAM market has been stable and shipments have been growing steadily in the second quarter of 2012. However, market conditions for the upcoming third quarter are difficult to forecast due to unfavorable macroeconomic developments, according to packaging and testing houses.

The market for standard DRAM memory remains chaotic, said Powertech Technology (PTI) chairman DK Tsai, adding that the firm is cautious about the demand outlook for the third quarter. Fellow backend company Walton Advanced Engineering also holds a conservative outlook for the DRAM market in the quarter, according to company president Yu Hong-chi.

Both firms are relatively optimistic about demand for mobile DRAM memory widely used in handheld and wireless devices, with plans to expand capacity for the segment later in 2012.

PTI previously unveiled plans to reallocate more capacity from commodity DRAM chips to mobile DRAM parts in 2012. Walton also said in previous reports that it started shifting some standard DRAM capacity to mobile DRAM production in the second quarter.

In addition, both PTI and Walton believe their second-quarter revenues will show sequential increases as expected.

PTI stated at its most-recent investors meeting that consolidated revenues for the second quarter of 2012 would increase 20-25% sequentially as a result of its strategic investment in Greatek Electronics, while the company's core business would post flat sequential growth in the quarter. PTI is striving to diversify its offerings with an aim to reduce its focus on commodity DRAM products.

Walton projected second-quarter revenues would rise on quarter, without giving numbers. Market watchers expect the firm to post double-digit sequential growth in the quarter as major clients including Winbond, Nanya and Elpida step up their pace of orders.