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CELL PHONE SALES BOOST OP PROFITS FOR SEMICONDUCTOR MAKERS.
TOKYO, Aug 1 Asia Pulse - Brisk sales of cellular phones have helped the world's leading producers of related semiconductors log increases in operating profits for the April-June quarter, while their counterparts that make memory chips for personal computers have seen their profits tumble.
According to forecasts by U.S. research firm Gartner Dataquest, global shipments of cellular phones in 2006 will grow 17.5 per cent to 960 million units. DRAM chips will be installed in cell phones that are able to transmit e-mail and other forms of data, as well as in handsets that can download video and music. Such phones are highly popular in Japan, the U.S. and Europe.
Elpida Memory Inc. (TSE:6665), which specializes in DRAM, leads the way in developing low-power-consumption chips for cellular phones. The company commands a 60-70 per cent share of the global market, says Elpida President Yukio Sakamoto.
The company on Monday posted a group operating profit of 9.1 billion yen (US$78.8 million) for the April-June period, its best quarterly figure. In the same period last year, it logged a group operating loss of 2.6 billion yen. Sales also expanded 92 per cent to a record 92.1 billion yen.
U.S. firm Texas Instruments Inc., which has an edge in semiconductors that regulate cell phone calls, saw its operating profit climb 58 per cent to 108.6 billion yen. And operating profit at Toshiba Corp.'s (TSE:6502) semiconductor division reached 20 billion yen, an increase of 35 per cent.
In contrast, the ...
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