Rexchip Electronics is likely to fall into the red along with fellow Taiwan-based DRAM manufacturers in the third quarter of 2011, according to a Chinese-language Apple Daily report.

For July and August, Rexchip already suffered a combined loss of NT$3.1 billion (US$105 million), according to the report. Gross margin for the two months also slipped to negative 62.75% from the positive 14.02% reported for the first half of 2011.

Rexchip managed to remain profitable in the first half of 2011 while all other Taiwan-based DRAM chipmakers posted losses.

Rexchip is the production subsidiary of Japan's Elpida Memory, and has moved 30nm-class process technology to volume production ahead of fellow Taiwan-based DRAM companies.

Source:digitimes