Memory packaging and testing firm Powertech Technology (PTI) expects 2011 revenues to rise 10-15% over 2009 thanks to strong mobile DRAM demand from the smartphone and tablet PC sectors, the company said during an investors meeting on January 25.
In the fourth quarter of 2010, PTI registered consolidated revenues of NT$10.057 billion (US$346 million), up 2.2% sequentially. However, a strong NT dollar pushed the company's gross margin to 25.1% from the 28% in the previous quarter. For 2010, EPS reached NT$10.53.
PTI indicated that most DRAM makers are switching their capacity to DDR3 2Gb production, and Elpida begun cutting DDR3 1Gb capacity since the fourth quarter of 2010. Hence DDR3 1Gb supply could tighten in the first quarter, the company added.
PTI will add new NAND flash clients in the first quarter, which will provide monthly orders of 10 million units. To accommodate strong demand for mobile DRAM, PTI's capex will reach NT$10 billion for the year to expand capacity. The company also has plans to set up a 3D IC laboratory, with the ground breaking ceremony scheduled for March and initial equipment installation in April.