Powerchip Technology saw its losses narrow sequentially in the second quarter of 2012, when revenues grew 37.4% on quarter. The chipmaker expects to see further improvement in its operations during the second half of the year.

Powerchip has announced net losses of NT$3.04 billion (US$101.5 million) on revenues of NT$7.89 billion for the second quarter of 2012. The losses shrank 45% from the first quarter when losses came to NT$5.56 billion. Second-quarter 2012 marked the seventh straight quarter of net losses for Powerchip.

Powerchip's net losses for the first half of 2012 amounted to NT$8.6 billion, which translated into a net EPS of negative NT$3.88.

Powerchip has moved its business focus to IC foundry services, while reducing its exposure to the standard DRAM market. LCD driver ICs and CMOS image sensors are the main product segments that Powerchip's foundry business is targeting.

Despite less focus on commodity DRAM, Powerchip is looking to improve its competitive advantage in the segment with plans to start mass producing chips using 30nm process technology in the second half of 2012, company VP and spokesperson Eric Tang said in a statement.

Tang also noted that Powerchip's foundry business has seen clear order visibility through the end of 2012.

Powerchip reported revenues of NT$2.72 billion for July, up 2.9% on month. However, revenues for the first seven months of 2012 totaled NT$15.66 billion, down 42.3% from a year earlier.