Taiwan-based Winbond Electronics, a manufacturer of specialty DRAM and NOR flash memory, is set to return to the profitability in the first quarter of 2013, according to a report from Chinese-language financial website cnYES.com. A recent rally in DRAM prices, and Winbond's process transition enabling lower production costs, are identified as the contributing factors.

Winbond's shares rose by the daily limit of 7% to NT$6 (US$0.21) on the Taiwan Stock Exchange (TSE) today (January 15).

Winbond has shifted production of specialty DRAM to 46nm process and NOR flash to 58nm, allowing the company to significantly cut its average production cost and improve company gross margin, the report indicated. With DRAM prices rebounding since 2013, Winbond stands a good chance of generating profits in the first quarter, the report said.

In addition, Winbond recently acquired a set of immersion equipment and is ready to make the transition to 30nm-class production, the report indicated.

Winbond experienced a fifth consecutive quarterly loss in the third quarter of 2012. Despite the loss, Winbond saw its gross margin improve to 11% in the third quarter from 6% in the second quarter on higher yield rates for its 46nm and 58nm products.

Winbond generated revenues of NT$6.23 billion in the fourth quarter of 2012, down 5.2% on quarter. Earnings and other financial results for the quarter have not been disclosed.