Memory backend service providers, including Powertech Technology (PTI) and Walton Advanced Engineering (WAE), have seen the visibility of their orders extended to 3-6 months thanks to the ramping of DDR3 chips by DRAM makers, according to industry sources. The players are expected to report on-quarter revenue growth for the second quarter of 2010.
Orders placed by Elpida Memory and Powerchip Semiconductor Corporation (PSC) have tightened PTI's capacity for the DRAM memory segment, with the supply falling short of demand within a single-digit percentage range, the sources said.
Walton, whose major DRAM customers include Elpida, Nanya Technology and Winbond Electronics, has also seen orders exceed its capacity, the sources indicated.
PTI has responded saying its DRAM order visibility has stretched through June, and the company continues to see growing demand from customers. DDR3 will account for 70-80% of PTI's total shipments to the DRAM segment in the second quarter.
PTI estimated revenues for the first quarter of 2010 may drop slightly on quarter but may be higher than the levels in third-quarter 2009, implying a strong first quarter.
Walton reportedly has seen order visibility extend to September. DDR3 memory would exceed 50% of its overall shipments to the DRAM segment in the second quarter. Revenues for the first quarter may remain similar to the prior quarter's levels, or drop by 2-3%.