Packaging and testing company Powertech Technology (PTI) is expected to enjoy a particularly strong first quarter of 2017 thanks to robust demand for DRAM and NAND flash chips, and revenues generated from its Xian fab, according to market sources.

PTI is also expected to see its sales benefit from Micron Technology's growing investment in Taiwan, said the sources. The US memory vendor recently completed its takeover of Inotera Memories, and disclosed plans to invest more in Taiwan.

Micron is reportedly among PTI's major memory clients. The US firm is also partnering with the Taiwan-based backend house for assembly and packaging services in Xian.

PTI reported consolidated revenues of NT$4.61 billion (US$145 million) for November 2016, hitting a monthly record for the fourth consecutive month. Revenues for the fourth quarter are set to hit a record high for the second consecutive quarter.

PTI has not provided its guidance for the first quarter of 2017.