Prices for specialty DRAM (SDRAM) chips used mainly in consumer electronics devices and home appliances have stabilized in the fourth quarter of 2010, after a sharp downward correction in the prior quarter, according to Etron Technology chairman Nicky Lu.
Lu indicated that since the second half of 2010, demand in the overall electronics sector has not been as brisk as expected. This was also partly due to a particularly strong first half, Lu added.
Still, 2010 has been a good year so far for Etron, Lu said.
Etron has been actively developing its non-memory product segment, such as webcam controllers and USB 3.0 host controllers, according to Lu. The company intends to lower its sales proportion from SDRAM in order to cushion the impact from the highly-volatile market.
In 2011, non-memory products are expected to account for 20% of Etron's overall sales, Lu said.
Affected by falling SDRAM prices, Etron saw net profits plunge 87.8% sequentially to NT$29.18 million (US$959 million) in the third quarter. But the company swung to net profits of NT$420.4 million in the first three quarters of 2010 from year-ago losses of NT$117.91 million.