Powerchip Technology saw revenues decrease sequentially for the fifth consecutive month in January 2011, while ProMOS Technologies managed a sales increase ending a four-month streak of sequential drops.
Powerchip generated NT$3.41 billion (US$118 million) in January sales, down 4.6% sequentially and 42.6% compared to the same period a year earlier. Powerchip VP and spokesperson Eric Tang commented that prices for PC DRAM have hit bottom. Prices are expected to gradually recover later in the first quarter, according to Tang.
DRAM spot prices are now trending up, said Tang, adding that favorable pricing and the company's smooth transition to 45nm process technology will help lower its cost structure in the first quarter. The move to transform its PC DRAM business to a pure-play foundry model will also allow the company to place a heavy emphasis on higher-margin specialty DRAM and NAND flash memory, Tang indicated.
Powerchip swung to net losses of NT$8.33 billion in the fourth quarter of 2010, ending four straight quarters of profits.
ProMOS saw January revenues grow 4.7% sequentially to NT$1.26 billion. The figure showed a slight increase compared with the NT$1.245 billion posted in January 2010.
ProMOS sells its own DRAM products, and also produces chips used in computers for Japan's Elpida Memory.