Nanya Technology Corp (南亞科技), the nation’s second-largest maker of computer memory chips, yesterday said the company’s board had approved a proposal to slash 66.43 percent of outstanding share capital to help improve its financial structure after suffering massive losses during the industry’s severe downturn.
The capital reduction will help lift Nanya’s book value to more than NT$10 per share, compared with NT$6.1 per share at the end of last year, company spokesman Pai Pei-lin (白培霖) said yesterday.
The move “will help absorb accumulated losses and improve the company’s financial structure,” Pai said.
Nanya plans to cut NT$31.18 billion (US$922 million), or two-thirds of its current NT$46.93 billion in outstanding share capital, to NT$15.75 billion.
The Taoyuan-based chipmaker accumulated NT$35.23 billion in losses last year as prices fell because of market glut in memory chips and shrinking demand.
Because there is no clear sign of a solid recovery, Nanya may report more than NT$8 billion in quarterly losses for the first three months of this year and may suffer another money-losing year this year, said Rick Hsu (徐稦成), a semiconductor analyst at Nomura Securities Co’s Taipei branch.
Nanya’s board also gave the go-ahead to a fund-raising plan that aims to sell a maximum of 4 billion new common shares in private placement and offer up to 4 billion new shares to the public, hopefully by the end of this year, Pai said.
The fundraising plan — which Pai said would gain support from its parent, Formosa Plastics Group (台塑集團) — could help Nanya raise a combined NT$66.88 billion in new capital based on the stock’s closing price of NT$8.36 per share yesterday.
The company plans to spend the proceeds on new equipment, which would help it upgrade to next-generation 50-nanometer stack technology from US technological partner Micron Technology Inc, Pai said.
This year, Nanya plans to spend less than NT$20 billion on new equipment, compared with last year’s NT$12 billion, he said.
Separately, Pai said the company plans to hike chip prices by another 10 percent during the second half of this month because drastic output cuts industry-wide have helped ease the glut in memory chips following a 5 percent to 10 percent price hike in the first half of the month.
“Demand is not as bad as we thought. And customers’ inventories have fallen drastically to approach normal levels,” Pai said. “Our customers have even started feeling supply constraint recently.”
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
Artificial intelligence (AI) agents would supplant smartphones as the center of people’s digital lives, fundamentally reshaping personal devices and driving a major computing upgrade cycle, Qualcomm Inc CEO Cristiano Amon said yesterday. In his keynote speech for this year’s Computex trade show in Taipei, Amon said that the rise of "agentic AI" — AI systems capable of reasoning, planning and carrying out tasks autonomously — would transform how people interact with technology across phones, PCs, vehicles and wearable devices. Describing the technology as the next major evolution in computing, Amon said that "2026 is the year of agents.” For decades, smartphones have sat
RSS