Taiwan-based DRAM chipmakers may see a continued downward trend in chip prices impacting their profitability in the fourth quarter of 2010, according to a Chinese-language Commercial Times report. DRAM pricing is unlikely to recover through the quarter, as end-market demand remains weak.
DRAM contract prices are expected to drop by a further 20% sequentially in the fourth quarter, the paper said. The decline will make it tougher for Nanya Technology and Inotera Memories to meet their aims of returning to profitability in the second half of 2010, the paper indicated.
Among Taiwan's DRAM chip producers, only Powerchip Technology and Rexchip Electronics swung to profits in the first half of 2010 from losses a year ago.