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PSC to spend over NT$10B on leading-edge process program.

Taipei, March 15, 2010 (CENS)--PowerChip Semiconductor Corp. (PSC) recently decided to spend NT$10-11 billion (US$312-343 million at US$1:NT$32) this year on leading-edge process program, a huge capital expenditure surge from last year's nearly zero outlay.

The capital expenditure is mainly designed to upgrade the company's manufacturing process to 40-nanometer node.

The capital expense program reflects optimistic views about global dynamic random access memory (DRAM) market, which began recovering late last year as a result of rising demands driven by replacements of older PCs for Win7 PCs and new Apple PCs. Also, DRAM supply is running short worldwide after a series of production constraints across the industry, effectively bolstering unit prices of the memory chips built in every personal computer.

Over the past two years or so, most of the world's DRAM chipmakers including PSC have been saddled with serious losses because of weak demands compounded by the global economic downturn.

Shortly after PSC's board of directors passed the capital expenditure project recently, the company's executives pointed out that PSC almost did not budget any money for expansion last year because of an anemic global economy in the first half.

Rexchip Electronics Corp., PSC's joint venture with Elpida Memory Inc., plans 2010 capital expenditure at NT$12 billion (US$375 million) and Elpida plans at 60 billion yen (US$666 million at US$1:90 yen). Rexchip plans to migrate to 45-nm process by the end of this year.

PSC's domestic rivals Nanya Technology Corp. and Inotera Memories Inc. each set to spend at least NT$20 billion (US$625 million) and NT$52 billion (US$1.6 billion) to upgrade manufacturing process this year. Both Nanya and Inotera plan to deploy 42-nm process one quarter earlier than projected.

((Ken Liu))

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Title Annotation:PowerChip Semiconductor Corp.
Author:Liu, Ken
Publication:The Taiwan Economic News
Article Type:Brief article
Date:Mar 15, 2010
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