Taipei, Sept. 8, 2008 (CENS)--Impacted by anemic demand for DRAM chips, DRAM chipmaker PowerChip Semiconductor Corp. (PSC) recently disclosed for the first time that it plans to use one of its three 300mm wafer fabs to produce drive ICs next quarter.

It would become first Taiwanese DRAM chipmaker to make non-memory chips with 300mm fab once it begins the production.

Inventory overhang and excessive supply in the market pulled down prices of spot-DRAM market to new low in August, dragging down PSC`s revenue results. The company`s internal calculations show its revenue for last month stood at NT$5.03 billion (US$162 million at US$1:NT$31), contracting 17.56% from a month earlier and 23.88% from the same period of last year. Throughout the first eight months this year, the company scored total revenue of NT$43.3 billion (US$1.4 billion), losing 26.98%.

PSC spokesman C.M. Tan said the company takes a conservative view about its September operation and will ramp up 65nm production to pare down costs in the fourth quarter. He estimated the company to make half of its chips using this process by the end of this year.

Also, the company will vie for Japanese orders for non-memory foundry manufacturing to relieve impact from DRAM oversupply.

Industry watchers pointed out that although DRAM prices already hit new low in August, inventory backlogs of the chips remained high, ranging from a few weeks to a few months, at chipmakers, module makers and retailers.

(by Ben Shen)