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Winbond to enjoy revenue growth in 2Q22

Despite recent falls in memory chip prices, Winbond Electronics is poised to generate sequential revenue growth in the second quarter of 2022, according to market sources.

Specializing in specialty DRAM and flash memory, Winbond has enjoyed strong demand for Wi-Fi 6/6E, industrial and network monitoring device applications, said the sources. A strong pull-in of orders from these sectors will mitigate the impact of falling chip ASPs, the sources indicated.

On the other hand, Winbond has experienced a slowdown in NOR flash demand for PCs, TWS headsets and other consumer electronics devices. Nevertheless, the chipmaker has been actively adjusting its NOR chip product mix by boosting shipments of high-density solutions, while optimizing its mainstream 58nm process manufacturing and transitioning to a newer 45nm process, the sources noted.

As a major supplier of DDR3 memory, Winbond has seen its DDR3 ASPs come under downward pressure amid unfavorable macro conditions, the sources said. However, with lockdown restrictions in China poised to ease, DDR3 prices are about to hit their lowest levels for 2022 in the second quarter, the sources believe.

Rising DDR3 shipments and prices buoyed Winbond’s sales and profit performance in the first quarter of 2022, when the chipmaker generated record net profits of NT$4.56 billion (US$153.6 million), according to the sources.

Winbond has reported April revenue slipped 3.2% sequentially to NT$8.92 billion. The company’s cumulative 2022 revenue through April totaled NT$35.44 billion, rising 19.6% on year. NewsExplorer

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