Taiwan-based DRAM makers Powerchip Technology, Nanya Technology, Inotera Memories and ProMOS Technologies have all seen their cash positions shrink significantly compared to the levels reached at the end of the second quarter, affected by chip price declines, according to a Chinese-language Commercial Times report.
The need to migrate to sub-50nm processes has had a further negative impact on the companies' cash flows, the paper said, citing institutional investors.
As of the end of October 2010, Powerchip, Inotera and ProMOS all held less than NT$2 billion (US$65.64 million) in cash, respectively down from NT$4.94 billion, NT$7.13 billion and NT$2.99 billion as of the end of June, the paper indicated. Meanwhile, Nanya's cash position declined to less than NT$5 billion, according to the paper.
Nanya and Inotera posted their third straight quarterly losses in the third quarter. Powerchip remained profitable in the third quarter, but saw net profits decrease 71.5% from the second quarter. ProMOS reported wider losses for the third quarter on a sequential basis. The company swung to the red in the second quarter of 2007, and has remained unprofitable since.