Memory IC design house Zentel Electronics is upbeat about the specialty DRAM (SDRAM) memory market in the third quarter of 2010, as supplies continue to tighten due to strong demand as well as contract makers' capacity allocation to standard DRAM, according to company general manager Joe Chen.
New capacity at DRAM makers is also expected to be limited in the short-term, Chen added. The ASP of SDRAM chips has soared by about 20% since the beginning of 2010, Chen indicated.
Chen said that producing a 12-inch wafer for standard DRAM now generates higher production value than making it for SDRAM, and thus the former has squeezed capacity for the latter.
In addition to capacity support from parent company Powerchip Semiconductor Corporation (PSC), Zentel is seeking to add new foundry partners, according to Chen. Zentel's inventory level is less than two months at present, said Chen.
Zentel chairman Stephen Chen was quoted in previous reports saying the company is speeding up its transfer to 72nm for its SDRAM products, available in densities ranging from 64Mb to 256Mb.
Zentel swung to profits of NT$99 million (US$3 million) in the first quarter of 2010 from losses of NT$4 million a year ago.