Winbond sticks to operational transformation despite hikes in standard DRAM pricing

Josephine Lien, Taipei; Adam Hwang, DIGITIMES [Wednesday 6 February 2013]

Memory maker Winbond Electronics has been transforming its operations by phasing out standard DRAM. Although prices for standard DRAM have approximately doubled since the end of 2012, the company will not resume production of the product line, company president Chan Tung-yi said at a February 6 investors conference.

Winbond has focused production on three product lines: NOR flash, specialty DRAM and mobile RAM which accounted for 45%, 44% and 11% of its revenues for the fourth quarter of 2012. Due to price hikes for standard DRAM, contract prices for specialty DRAM are expected to be pushed up in the second or third quarter of 2013. The proportion of NOR flash revenues using 58nm processing rose from 15% in the third quarter to 20% in the fourth quarter of 2012, while specialty DRAM revenues using 46nm technology rose from 20% to 25%.

Winbond has set aside a 2013 capex budget of NT$1.9 billion (US$64.4 million) to reach monthly production capacity of 19,000 wafers for NOR flash, including 8,000 wafers based on 58nm and 3,000 based on 46nm, and 16,000 wafers for specialty DRAM and mobile RAM, including 12,000 based on 46nm.

Winbond posted revenues of NT$6.236 billion, gross margin of 8%, net losses of NT$556 million and net loss per share of NT$0.15 for the fourth quarter of 2012.