Taiwan DRAM Makers Count on Earnings from China Orders
October 16, 2000 (TAIPEI) -- The warming demand for personal computers in China that began last week is expected to help turn prices for 64Mb DRAMs around to a profit.
If the expectation comes true, Taiwan's DRAM makers, including PowerChip Semiconductor Corp., ProMos Technologies Inc., Mosel-Vitelic Inc., Vanguard International Semiconductor Corp., Winbond Electronics Corp., and Nanya Technology Corp. will have support to raise their contract prices in negotiations with customers.
Contract prices for 64Mb DRAMs fell to US$7.3 to US$7 a chip in early October. If the prices fall below US$7 in late October, the island's DRAM makers will see their revenues and earnings shrunk sharply.
PowerChip previously estimated its annual revenues in the fourth quarter to rise 30 percent. Now, the expectation seems impossible, since contract prices have kept on slipping. PowerChip and Vanguard were the only two DRAM makers on the island reporting revenue growth in September.
ProMos reported revenue of NT$2.3 billion (US$73.67 million at US$1:NT$31.22) last month, a decline from August's NT$2.57 billion (US$82.31 million).
The slower-than-expected market has been the factor behind the recent slumping of DRAM prices. However, Taiwan's market experts expect the warming DRAM procurements by China's PC producers to curb the prices from falling.
ProMos' officials said China's need for the memory chips has been warming up after the mainland's seven national holidays ended in early October.
(Commercial Times, Taiwan) |
