Powerchip Monthly Sales Report ”V August 2011

Hsinchu, Taiwan”ŠPowerchip Technology Corporation (Powerchip, ticker 5346) announced unaudited net sales of 2.058 billion NT dollars for August 2011.

Powerchip Vice President and Spokesperson Mr. Eric Tang stated, as DRAM pricing continues to fall and as Powerchip strategically adjusts its capacity allocation, lowering commodity DRAM wafer input and output by at least 50%, together with increased inventory levels, have resulted in August revenue declines.  Currently Powerchip”¦s foundry business is expanding smoothly and profitability is stable.  As DRAM wafer input decreases, Powerchip”¦s capacity to support its foundry customers”¦ development of new products and pilot runs will greatly increase and will speed up the conversion goal of 50% of capacity to foundry by year end.

The net sales of August 2011:       (*Unit: Thousand NT$)
Period              2011(*)           2010      Y/Y Increase ¢M
-------------   -------------   --------------   --------------
Aug.              2,058,025       8,888,168        -76.85%
Jan.-Aug.        29,198,878      60,022,497        -51.35%

*The sales figures have not been audited.

Spokesperson : Eric Tang(886-2-25170055)
Contact : Shannon Wu(886-3-5795000 ext.2009)