Nanya Technology Corp (南亞科技), the nation’s top computer memory chipmaker, yesterday posted its smallest quarterly loss in seven quarters as easing oversupply helped lift chip prices.
In the April-June period, Nanya Technology’s losses fell to NT$6.55 billion (US$200 million), an improvement from quarterly losses of NT$7.29 billion a year ago and NT$10.51 billion in the first three months of the year.
The chip price has rebounded more than 30 percent quarter-on-quarter in the period ending June 30 after supply became a constraint in the wake of a massive reduction in output and sales of next-generation DDR3 chips. The chips have a 40 percent price premium over existing mainstream DDR2 chips, the company said.
Looking ahead, company spokesman Pai Pei-lin (白培霖) said: “The market [demand] looks better and better by the month ... We think the third quarter will be a better period than the second quarter as prices in the July-September period will be higher than the April-June quarter.”
Nanya Technology planned to hike chip prices by between 10 percent and 15 percent in the first half of this month, Pai said, adding that the price hike may last until October.
Faster-than-expected recovery in demand and easing oversupply may help boost prices further, Pai said.
“Inventory at electronics makers is falling to a very low level of less than one month ... We even have to deal with rush orders for certain customers,” Pai said.
Supply of DDR3 chips is expected to become a constraint as output from few memory chipmakers was able to cope with growing uptake of the energy-effective chips in notebook computers, PCs and servers, Pai said.
In Taiwan, Nanya Technology is the only chipmaker that makes DDR3 chips on partner Micron Technology Inc’s 50-nanometer technology. The shipments of DDR3 may account for 25 percent of shipments this quarter and up to 30 percent by year-end, from 20 percent last quarter.
Meanwhile, rival Powerchip Semiconductor Corp (力晶半導體) said yesterday that from Aug. 21 it planned to eliminate unpaid leave imposed on its employees to increase output on improving chip prices. The move casts a shadow over the fragile rebound.
Separately, Charles Kau (高啟全), president of Inotera Memories Inc (華亞科技), a memory joint venture between Nanya Technology and Micron, said the company would submit a proposal jointly with Nanya Technology for a government capital injection by the Oct. 20 deadline.
“We certainly will meet the four mandated requirements,” Kau said.
He declined to reveal the amount the companies planned to seek.
Shares of Nanya Technology and Powerchip fell 4.79 percent and 5.2 percent to NT$5.77 and NT$3.28, respectively, under-performing the benchmark TAIEX index’s 0.3 percent gain yesterday.
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