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Nanya shares rise on strength of Dell CEO's comments

Shares of Nanya Technology Corp (南亞科技), the nation's second-largest maker of memory chips, rose after Dell Inc's chief executive officer said the Vista operating system may need more memory than recommended by Microsoft Corp.

Nanya Technology shares rose 1.5 percent to close at NT$23.20 on the Taiwan Stock Exchange after gaining as much as 5.7 percent in earlier trading.

Kevin Rollins, chief executive of Texas-based Dell, said on Thursday that computers running the new Vista operating system may need two gigabytes of memory, compared with the one gigabyte recommended by Microsoft. Nanya Technology is one of Dell's major suppliers of memory chips.

A two-gigabyte recommendation ``is a good thing for DRAM makers because right now industry forecasts are using one gigabyte,'' said Rick Hsu (徐稦成), who rates Nanya a "buy" in coverage for Nomura Securities Co in Taipei.

"We're already talking about a 55 percent increase in memory per computer, so if we switch to two-gigabytes it will be an even bigger rise," he said.

Dell and Nanya signed a five-year contract in June 2002 that would see Nanya and an affiliate supply US$3 billion worth of chips and circuit boards. Dell is the world's second-largest maker of computers behind California-based Hewlett-Packard Co.

Separately, Fujitsu Ltd, a rival memory-chip maker, filed a lawsuit against Nanya in San Jose, California, on Monday. The suit alleges Nanya is using patented innovations without permission.

Nanya filed a suit against Fujitsu last month also alleging patent infringement.
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