10.11.2001
Winbond’s 12-inch fab plan on the back burner

• Due to serious global DRAM over-supply and Toshiba’s (Winbond’s DRAM technology source and largest DRAM client) negotiating to sell its DRAM business, Winbond has decided to delay plans for its 12-inch fab until the Toshiba situation becomes clear. Nonetheless, Winbond announced much better Sept. revenue results than its DRAM rivals, mostly due to strong performance in the non-DRAM sector (70% of Sept. revenue). Revenue for the month hit NT$1.7bn, a 1.2% MoM improvement, compared with negative 31% for Powerchip (5346.TT) and negative 32% for Nan Ya Tech (2408.TT). We believe Winbond’s decision to put plans for a new fab on the back burner as a prudent move.