Nanya Technology Corp (南亞科技) and other Taiwanese computer DRAM makers say the industry may return to profitability by the second half of next year as global-semiconductor prices rose more than 10 percent yesterday.
The spot price for benchmark memory 128Mb chips increased to US$2.08 from US$1.86 yesterday, according to statistics published by DRAMeXchange.com, a clearinghouse for the chips used in PCs and other consumer devices.
Nearly all DRAM makers will report losses for this year as prices plummeted and sales fell by about two-thirds to US$10 billion amid the worst slump in demand for PCs since 1985. Prices, which started to rebound early last month, will have to almost double from current levels for companies to make profits, suppliers say.
"For the industry to be healthy, the price has to go up to about US$4," said Charles Kau (高啟全), vice president, Nanya. "That may happen within two quarters."
Nanya expects a full-year loss, after reporting a US$108 million loss for the third quarter. The company is forecasting a return to profit in the first quarter because demand is rising for its memory chips that speed the operation of PCs using use Intel Corp's latest processor.
Samsung Electronics Co, the largest maker DRAM, said it renegotiated higher contract prices twice during this quarter.
"Companies will become profitable after the price rises above US$3," said Albert Lin (
Merger and acquisition talks between Taiwanese chipmakers have stalled as prices have risen. Nanya rejected an overture from Infineon Technologies AG of Germany about two months ago.
RSS