Taiwan-based Powerchip Technology has announced net losses of NT$1.21 billion (US$41.4 million) for the second quarter of 2011, showing improvement compared to losses of NT$4.97 billion in the prior quarter. EPS for the second quarter came to negative NT$0.22.
Powerchip's net losses for the first half of 2011 amounted to NT$6.18 billion, or NT$1.12 a share.
Powerchip is sticking to its business diversification strategy, according to company VP and spokesperson Eric Tang. Sales of Powerchip's foundry business continued growing steadily in the second quarter, while the company's smooth transition to 40nm process technology for DRAM manufacturing boosted shipments of 2Gb chips, said Tang.
Powerchip's revenues increased 12.4% sequentially in the second quarter, as the company's more diversified product mix helped mitigate the impact of falling DRAM prices, Tang noted.
Powerchip has shifted its production lines away from a concentration on generic DRAM. The company now provides foundry services for LCD driver ICs, flash memory, CMOS image sensors and power management ICs, with existing 12-inch facilities giving it a strategic advantage.
Powerchip is set to allocate more capacity to produce non-DRAM products on an OEM basis, Tang said. The foundry segment will account for more than 50% of company production by the end of 2011, according to Tang.
As for DRAM products, Powerchip will continue focusing on process advancement to lower production costs, Tang indicated. The company expects to install its third set of immersion equipment during the third quarter, and is ready to make the transition to 30nm-class nanometers, Tang said.
In other news, Nanya Technology and Inotera Memories have reported net losses for the second quarter of 2011. Both companies reiterated that shipments of their non-PC DRAM products will grow with the proportion of total revenues for the segment to exceed 50% by the end of 2011.
Nanya and Inotera have been devoting efforts to products targeted at servers, smartphones, tablet PCs and other consumer technology products with an aim to reduce their reliance on the conventional PC market.