Powertech Technology (PTI) expects to post another moderate growth in revenues for the third quarter of 2015, with improvement in gross margin.

PTI has reported net profits of NT$927 million (US$29.5 million) on consolidated revenues of NT$10.24 billion for the second quarter, representing sequential growth of 8.6% in revenues and 20.1% in profits. Compared to a year earlier, revenues for second-quarter 2015 were down 3.2% while profits showed a 3.1% increase.

PTI's EPS for the second quarter came to NT$1.20 compared with NT$1.01 in the prior quarter and NT$1.18 during the same period in 2014.

PTI's testing business accounted for 28% of the company's overall revenues in the second quarter of 2015, up from 27% in the previous quarter and 25% a year ago, while its packaging business made up the remaining 72%.

Sales generated from the memory IC sector accounted for 71% of PTI's total revenues in the second quarter of 2015. The company also provides packaging and testing services for logic chips, such as wafer bumping and flip-chip packaging.

Demand for mobile DRAM, graphics DRAM and high-speed memory chips will rise in the third quarter, but PC DRAM demand will stay weak, said company president Jia Yu Hong. Meanwhile, demand for high-end smartphones and SSDs will continue to stimulate demand for NAND flash chips during the quarter, Hong indicated.

As for logic chips, PTI is optimistic about demand for high-end logic ICs which will boost sales of its flip-chip packaging and bumping services in the second half of 2015, the company revealed.

In addition, PTI disclosed that its joint packaging and testing plant with Micron Technology is slated to enter mass production between the first and second quarter of 2016. The joint plant will be located in Xian, China, which will be occupied by PTI to provide Micron and other chip companies with assembly and packaging services.