DRAM maker Powerchip Technology is looking to improve its competitive edge by adjusting its product mix and lowering production costs, according to the company. It has also budgeted NT$12.6 billion (US$393 million) in capex for 2010, a more ambitious goal compared to NT$10-11 billion previously estimated.
Powerchip plans to grow the shipment proportion of its foundry business for specialty DRAM (SDRAM) memory and LCD driver ICs, seeking a better product mix that will yield higher profits, company chairman Frank Huang said.
Elite Semiconductor Memory Technology (ESMT), Etron Technology and Zentel Electronics are among Powerchip's foundry customers. Powerchip has also reserved a portion of its 12-inch capacity for contract orders for LCD driver IC products.
As to standard DRAM, Huang indicated that Powerchip will start trial runs on Elpida Memory's 45nm design in the fourth quarter of 2010.
In addition, Powerchip's board of directors has approved a plan to allocate NT$12.6 billion to mainly spend on technology upgrades and immersion lithography equipment purchases in 2010.
In other news, Powerchip's capital reduction went into effect on June 24, 2010. The company's paid-in capital now totals NT$56.089 billion, down 38% from the previous level of NT$90.4 billion.