Winbond Electronics expects its operations to hit bottom between the fourth quarter of 2011 and first-quarter 2012, but will rebound along with a better global economy in the second quarter, according to company company chairman Arthur Chiao.
Meanwhile, disruptions to the HDD industry supply chain caused by Thailand's floods are expected to ease in the second quarter of 2012, when the world economy enters its recovery stage, said Chiao.
Winbond supplies NOR flash memory chips as well as niche-market DRAM products such as specialty DRAM for consumer electronics and mobile RAM for handsets. The NOR product line currently accounts for 40% of company revenues.
Chiao revealed the market for NOR flash is currently in a state of oversupply, bringing pressure on chip prices. Winbond has been actively enhancing its client portfolio, and also seeking growth opportunities in the serial flash segment, Chiao noted.
Winbond previously remarked that its business in the fourth quarter would be affected by a global economic slowdown, and also expressed concerns that disrupted production at HDD clients in Thailand would impact its sales performance.
Winbond swung to net losses in the third quarter of 2011 from profits in the prior quarter and a year ago.
In other news, Winbond reported November revenues of NT$1.85 billion, down 8.9% on month and 28.3% on year.