Specialty DRAM and flash memory maker Winbond Electronics has reported net profits fell 53.3% sequentially and 44% on year to NT$331 million (US$11.6 million) in the third quarter of 2020, while revenue increased 25.8% on quarter and 19.5% from a year earlier.

Winbond ran its production lines at full capacity utilization in the third quarter, which led to the revenue growth. Besides, subsidiary Nuvoton Technology's September acquisition of Panasonic's semiconductor business boosted further the Taiwan-based chipmaker's revenue during the quarter.

However, rising management and R&D costs led to Winbond's profit decline in the third quarter. EPS for the quarter came to NT$0.08.

Acquiring Panasonic's semiconductor business may have a negative impact on Nuvoton's profitability in the short term, Arthur Chiao, chairman for Nuvoton and Winbond, was quoted as saying in previous reports.

Winbond's net profits for the first three quarters of 2020 amounted to NT$954 million, down 35.1% on year, with EPS reaching NT$0.24.

Winbond's board of directors has approved a capex budget of NT$1.428 billion that will be carried out starting the fourth quarter of 2020 for expanding the company's advanced process manufacturing capacity, as well as replacing old production equipment and facilities with new ones.

Winbond's board also approved plans to invest a total of about NT$1.44 billion in Nuvoton's upcoming capital expansion.

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