Memory controller IC supplier Phison Electronics has seen orders start picking up in October, as falling prices for NAND flash chips appeared to stimulate demand, according to company chairman Khein Seng Pau.
Phison's October revenues are expected to grow from NT$2.82 billion (US$91.7 million) in September, to reflect a slight rebound in orders, Pau said.
Pau expects Phison's gross margin to remain above 10% in the fourth quarter, despite chip price drops. The company saw its gross margin decrease to 10.73% in the third quarter from 10.97% in the second.
In the third quarter, Phison's controller shipments totaled 150 million units, of the 112 million units shipped for flash memory cards.
In addition to controllers, Phison also manufactures NAND flash devices. The company revealed it has developed flash memory cards and drives for car-use applications, and cut into the supply chain of car vendors such as BMW and Honda.
Phison reported net profits of NT$482 million (US$16 million) for the third quarter, up 50% on quarter and 7% on year. Net sales for the quarter were NT$8.44 billion, rising 12% sequentially.