Memory packaging and testing specialists Powertech Technology (PTI), Walton Advanced Engineering and Formosa Advanced Technologies (FATC) are expected to benefit from a recovery in the DRAM market starting the second quarter of 2013, according to industry sources.

Brisk demand for mobile DRAM chips and a healthier balance of PC DRAM supply and demand have boosted chip prices, which will lead to an industry recovery in 2013, the sources indicated. Backend houses have now sensed a pick-up in the DRAM market, the sources said.

Demand for mobile DRAM has been driven by strong smartphone sales. Meanwhile, as chipmakers put increasing focus on orders for mobile devices, overall PC DRAM production has fallen causing a shortfall in supply and a rally in chip prices.

PTI has been pinpointed as a major beneficiary of robust mobile DRAM demand. The company has received a pull-in of orders from Elpida Memory as well as Powerchip Technology, the sources noted.

Walton, whose customers include Elpida and Winbond Electronics, has also seen customer orders pick up, the sources said.

In addition, dedicated module maker Kingston Technology reportedly has booked up almost all DDR3 production capacity at Nanya Technology. Kingston will also contract FATC to assemble and test a portion of the chips manufactured by Nanya, the sources indicated.

Thanks to improvements in their production utilization rates, PTI, Walton and FATC are set to report revenue and gross margin growth for the second quarter of 2013, the sources believe.