Memory backend service providers Powertech Technology (PTI) and Walton Advanced Engineering have revealed plans to expand their capacities to meet projected demand. PTI aims to boost its packaging capacity to 230-240 million DRAM chips a month by the end of 2010, while Walton will add an additional capacity of 10 million chips starting from July.
With its current packaging capacity for DRAM chips at 200 million units a month, PTI said it plans to add 30-40 million to the monthly output by year-end.
PTI is also looking to increase its outsourcing to contract partner Payton Technology - a China-based packaging and testing house that is fully owned by Kingston Technology - and subsidiary Macrotech Technology. Payton will expand its monthly capacity for DRAM memory to 65 million units at the end of 2010 from about 45 million at present, PTI said.
PTI was quoted in previous reports as saying the company has seen clear order visibility through the fourth quarter. Company chairman DK Tsai forecast that PTI's revenues will grow by 20% or more in 2010, as its capacity ramp is fast enough to catch up with demand.
Smaller peer Walton said its monthly capacity for DRAM will reach 80 million chips later in the third quarter, from the current 70 million units. The company will hold a ceremony to unveil its new plant, which was formerly a LCM plant acquired from HannStar Display, on July 23.
Walton pointed out that its capacity for niche memory products is also tight on rising demand for LCD TV and other consumer electronics applications. The company remains optimistic about its revenue and profit performance in 2010, while seeing order visibility stretch to the end of the year.
In other news, PTI has begun fulfilling orders for GDDR5 memory for Winbond Electronics in July, according to industry sources. Winbond manufactures GDDR5 chips using 65nm process for Elpida Memory alongside 70nm chips for itself.