PowerChip the only profitable DRAM chipmaker in Taiwan -

PowerChip Semiconductor (PSC) has been named as the only profitable DRAM chipmaker in Taiwan.  

According to Taiwan Economic News the company posted US $394 million (NT$12.2 billion) after-tax net income throughout the first three quarters of this year. Net income for the last quarter also impressed market watchers amounting to $62 million (NT$1.9 billion).

The figures made PSC the only profitable DRAM chipmaker in Taiwan compared to Nanya Technology and Inotera Memory, which had accumulated losses as of the end of last quarter. A slumping market has further worsened the losses.

The PCS profits seem to be down to successful migration to 63nm process, which has helped cut company costs while boosting output. In contrast Nanya Technology and Inotera Memory were not as successful in switching their processes.

Taiwanese manufacturers have lagged behind rivals such as Samsung, Hynix, Micron, and Infineon. However, PowerChip came 48th in Business Week's top 100 semiconductor companies this year. Last year it teamed up with Japanese Elpida.

Whatever the reason for profits PowerChip is doing something right. In the last quarter alone, PSC`s non consolidated gross profit and gross margin rate was $140 million (NT$4.3 billion) and 17.35 percent, respectively. Its net operating margin was 12.89 percent and its pre-tax earnings equated to $73 million (NT$2.2 billion)

PSC Chairman Frank Huang said his company would remain profitable into this quarter and will begin to deploy 45nm process next quarter to further drive down costs.