Taiwan-based Winbond Electronics, a supplier of specialty DRAM and flash memory, saw its net profits surge to a 17-year high of NT$2.16 billion (US$70.4 million) in the second quarter of 2018. EPS for the quarter came to NT$0.54.

Winbond's revenues increased 10.9% sequentially to NT$13.49 billion in the second quarter, thanks to rising sales of both its DRAM and flash product lines. Sales of its specialty DRAM and mobile DRAM chips grew 9.2% sequentially to account for 53% of company revenues in the second quarter, while flash memory sales went up 8.1% on quarter to account for 47% of the revenues.

In the first quarter, sales of both Winbond's DRAM and flash product segments fell 0.6% and 19.9%, respectively, on quarter, the company disclosed.

Winbond's net profits for the second quarter of 2018 increased 40% sequentially and 100% on year. The company generated net profits of NT$3.73 billion in the first half of 2018, rising 122% from a year earlier, with EPS reaching NT$0.94.

Winbond president Tung-Yi Chan said both the company's DRAM and flash business will continue their stable growth in the second half of 2018. In addition, the arrival of new production capacity in early 2019 will back the company's business growth over the next two years, according to Chan.

Winbond's production capacity at its Taichung, central Taiwan plant will expand to 54,000 wafers monthly in early 2019, up from the current 44,000 units, said Chan. The company is also scheduled to break ground for a new fab in Kaohsiung, southern Taiwan in September and expects to begin pilot operations at the fab in 2020.

As for process technology development, Winbond will move a newer 25nm process to volume production for DRAM products in the fourth quarter of 2018. The node will replace 38nm to become Winbond's mainstream production node for DRAM in 2019, Chan indicated.