Powertech Technology (PTI), a major Taiwan-based memory packaging and testing house, has announced net profits for the second quarter of 2010 increased 90.8% on year and 12% sequentially to NT$1.99 billion (US$62 million). Consolidated revenues for the quarter were NT$9.29 billion, a quarterly high.
PTI has decided to boost its 2010 capex to NT$12 billion from the original budget of NT$9 billion, said company chairman DK Tsai in a July 29 investors conference.
PTI is set to complete second-phase capacity expansion at its Hsinchu, Taiwan plant in October, with the new capacity to come online in November, Tsai said. Monthly capacity at the facility will be equivalent to about 80 million packaged DRAM chips, doubling the current level.
Contract partner Payton Technology is also growing its output for PTI, Tsai indicated. Payton will expand its monthly capacity for DRAM to 95 million units by the end of 2010 from about 45 million at present, Tsai added.
In addition, Tsai remarked that the outlook for DRAM over the next couple of quarters remains positive, as growing demand for mobile DRAM used in smartphones and tablets will be able to offset slower demand for standard DRAM used in PCs.
Industry watchers have speculated that weaker-than-expected PC growth and DRAM chipmakers' production ramp-ups using 40nm processes may create a supply glut later in 2010.
As for NAND flash, Tsai expects to see demand for high-performance parts used in smartphone, tablet and SSD applications increase. PTI has begun providing backend services for NAND flash used in SSD since July, Tsai noted.
NAND flash products accounted for 25% of PTI's total sales in the second quarter of 2010, compared to 16% a year earlier, according to the company's financial report.
Elpida Memory and Toshiba are among PTI's major customers. Both Japan-based memory chip vendors have reported better quarterly earnings for the three months ended June 30, 2010.
Tsai said PTI's overall capacity utilization rate will stay high at 95-100% in the third quarter, but it will slide to 90-95% in the fourth quarter due to the company's capacity ramp-ups.
Tsai forecasts PTI will enjoy sequential revenue growth through the last quarter of 2010. Revenues for all of the year are expected to grow 25-30%.