DRAM business profitable for Taiwan players in 4Q

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Taiwan players of the DRAM business ended last year with strong profits, according to local industry sources, adding that profits of Powerchip Semiconductor Corporation (PSC), ProMOS Technologies, Nanya Technology and Inotera Memories, taken together, exceeded NT$30 billion (US$920.5 million) in the fourth quarter of 2006. The sum is about three fourths of their total profits for the previous three quarters, the sources noted.

DRAM makers PSC, ProMOS and Nanya mainly benefited from from steady rises in DRAM prices, capacity expansion and their migration to 90nm processes, market observers said, adding that the same factors also benefited Nanya-invested DRAM foundry Inotera. PSC reported NT$11.38 billion in revenues for December 2006, with profits for the fourth quarter expected to amount to NT$11-11.5 billion. The company’s profits for the entire 2006 are expected to reach NT$22-25 billion. ProMOS posted NT$7.82 billion in revenues for December 2006, and its fourth-quarter profits are estimated to total NT$8.5-9 billion. Its 2006 profits should total NT$14.5-15 billion.

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