Taiwan-based Powerchip Technology has obtained orders for 100,000 512Mb and 1Gb MCPs (multi-chip packages) made of 40nm-based NAND flash chips and low-power Mobile RAM chips, according to the company.

Powerchip has started 40nm-based volume production of NAND flash chips at monthly input of 6,000 wafers currently, and is developing a 28nm process and expects to begin trial production at the end of 2012, the company indicated. Powerchip's P3 fab has a monthly capacity of 45,000 wafers of which a large portion is for production of NAND flash and the remaining for making DRAM chips currently, the company noted.

Powerchip has recently received urgent orders for LCD driver ICs, CMOS sensors and power management controller ICs, with monthly output rising from using 40,000-50,000 12-inch wafers to 60,000 ones which account for 50% of the 12-inch fab's monthly capacity, the company pointed out.

Powerchip has reduced monthly production of standard DRAM to input of 20,000 wafers and has begun trial production based on 30nm process, the company noted. The company expects its production of standard DRAM to turn profitable upon using 30nm process. Spot market prices for a 2Gb DDR3 has risen to US$1 currently, Powerchip added.

Powerchip's current overall capacity utilization is much higher than 50% in the fourth quarter of 2011, the company pointed out.

Powerchip spent about NT$2.0 billion (US$69 million) on capital assets in 2011 and will set a capital expenditure budget of NT$2.0-3.0 billion for 2012.