Powertech Technology (PTI) on April 28 reported better-than-expected results for its first-quarter performance. The memory packaging and testing service provider also gave a rosy outlook for the rest of 2011.
In addition, PTI has revised upward its capex budget for 2011 to NT$11 billion (US$381 million). It set a goal of NT$10 billion previously.
Speaking at an investors meeting, PTI chairman DK Tsai remarked that the company's sales should have reached the year's lowest in the first quarter. The company expects consolidated revenues to increase 5-10% sequentially in the second quarter, with a higher gross margin, Tsai said.
Tsai also delivered an optimistic outlook for demand in the second half of 2011. With major DRAM clients ramping up output using 30nm- and 40nm-class process technologies, PTI will benefit from the increased demand.
Tsai estimated that 3Xnm- and 4Xnm-made chips would account for a combined 50% of PTI's total DRAM sales in the second quarter, and the ratio may grow further to 70% in the third quarter and 90% in the fourth.
Japan's Elpida Memory reportedly is among PTI's major DRAM customers.
As for NAND flash, Tsai commented that smartphones, tablet PCs and other popular mobile devices are expected to create huge demand for NAND flash later in 2011. Flash drives and cards are no longer the main demand drivers, Tsai said.
In addition, Tsai noted that last month's earthquake in Japan should have a short-term impact on the industry supply chain. PTI now has sufficient parts and materials to continue supplying products as usual to customers through July, Tsai added.