DRAM maker Powerchip Semiconductor Corporation (PSC) has dismissed concerns about DRAM oversupply and pricing in 2010. Samsung Electronics' ambitious expansion plans for its chip unit may again cause a supply-demand imbalance, but the impact will not be seen until the second half of 2011, PSC said.
PSC believes Samsung is more focused on its NAND flash business rather than DRAM, and the Korea vendor may also shift some of its 12-inch capacity currently allocated for DRAM chips to meet increasing demand for driver ICs from the 3D TV segment and mobile RAM chips from the smartphone sector.
PSC was once one of Taiwan's financially-troubled DRAM chipmakers amid poor market conditions. It swung to net profits in the fourth quarter of 2009, following 10 quarters of losses.
PSC revealed 65nm remains its major production node for DRAM chips, and the company is transitioning to a 63nm process. It expects to start deploying 45nm technology in the latter half of 2010.
PSC expects to see its first set of immersion scanner equipment arrive in the fourth quarter of 2010.
In addition, PSC has gained approval at a shareholders meeting to downsize its capital by 38% to NT$56.09 billion (US$1.75 billion), according to a company filing with the Taiwan Stock Exchange (TSE). The capital reduction would help offset part of its cumulative operating losses.
In other news, price corrections have recently occurred in the DRAM spot market. Average prices for branded and eTT 1Gb DDR3 chips reached US$2.75 and US$2.69, respectively, during the afternoon trading session today (May 27), according to the latest report. Meanwhile, prices for branded and eTT 1Gb DDR2 averaged US$2.19 and US$2.10, respectively.