Taiwan's top DRAM chip maker, Powerchip, said on October 16 that its third-quarter profit more than tripled from a year earlier, beating expectations, as growing computer demand boosted shipments and chip prices.
Analysts say spiking chip prices might take a breather soon as new capacity from major makers comes on stream, but the sector's upturn is seen lasting into next year if Microsoft Corp's new Windows Vista spurs fresh PC demand.
Powerchip predicted its fourth-quarter capacity would rise 18 percent versus the third quarter, and forecast DRAM bit growth this year would rise 82 percent from 2005.
The company expects its capital spending to drop slightly to T$80 billion ($2.4 billion) next year from T$85 billion in 2006, with DRAM accounting for T$65-T$70 billion of next year's total and flash memory spending making up the rest, said President Brian Shieh.