Phison Electronics, which supplies controller ICs to customers including Toshiba and Kingston Technology, expects to report another profit growth for 2012 thanks to rising shipments and improvement in its cost structure.

Phison's controller business will be focused on eMMC-interface NAND memory devices and SSDs in 2012, according to company chairman Khein Seng Pua. Monthly shipments for embedded flash solutions topped 10 million units in 2011, said Pua, adding that the number will reach 20 million during the second quarter of 2012.

Pua added that Phison has secured controller orders for eMMC devices from three international vendors.

As for SSD controllers, Phison has delivered samples of its 55nm-made products for SATA3 SSDs with mass shipments set to begin later in 2012, Pua indicated. Production of the firm's other controllers for eMMC and USB 3.0 flash storage applications will also migrate to 55nm node technology starting the second quarter of 2012 for cost reasons, Pua said.

Phison currently contracts United Microelectronics (UMC) to manufacture its chips used in eMMC and USB 3.0 flash devices, and partners with Renesas Electronics for the manufacture of SSD controllers.

In addition, emerging markets will also play another revenue growth driver for the company in 2012, Pua noted. Shipments of products using Phison's chips to Brazil, for instance, have topped more than 400,000 units a month, Pua said.

In other news, Pua commented that prices for NAND flash chips remain under downward pressure in the first quarter of 2012. Pua expressed caution about the short-term pricing trend.

Phison reported pre-tax profits of NT$2.98 million (US$100.8 million), or NT$16.69 per share, on revenues of NT$32.34 billion for 2011. Market watchers have estimated Phison's net EPS for the year would exceed NT$14. 

Source:digitimes