Memory packaging and testing house Powertech Technology (PTI) is likely to experience another sequential sales drop in the fourth quarter of 2011, as cutbacks in DRAM supply will affect its revenue performance, the Chinese-language cnYES.com has cited market watchers as saying.
Samsung Electronics recently indicated that it has reduced the ratio of PC DRAM to total capacity to 30%. The remark followed reports that Japan- and Taiwan-based DRAM companies have moved to scale back their output in order to lift prices.
PTI has guided that consolidated revenues for the third quarter will drop 5% sequentially due to falling demand for DRAM packaging and testing. The company has not given its revenue outlook for the fourth quarter.
Elpida Memory and Rexchip Electronics reportedly are among PTI's major DRAM clients.
PTI also provides backend services for NAND flash vendor Toshiba. With new capacity at Toshiba and SanDisk's joint fab coming online in the fourth quarter, PTI may see rising demand for NAND chips which will partially offset weakness in that for DRAM, cnYES.com indicated.
PTI shares edged up 1% to close at NT$66.10 (US$2.16) on the Taiwan Stock Exchange on October 3.