Sat, Sep 04, 2010 - Page 12 News List

Revenue rises at Nanya Tech

SITTING PRETTY Inotera Memories is looking to double its output and halve costs by migrating 12-inch wafers to 50-nanometer technology by the end of the year

By Lisa Wang  /  STAFF REPORTER

Nanya Technology Corp (南亞科技), the nation’s biggest computer memory chipmaker, yesterday said revenues grew more than 3 percent last month as accelerating technological migration helped boost output.

Revenues rose about 3.14 percent month-on-month, or 43.95 percent year-on-year, to NT$5.26 billion (US$164.34 million) last month, from NT$5.1 billion in July and NT$3.65 billion in the same period last year, according to the company’s statement.

“The growth mainly comes from output increases from our own factory,” company spokesman Pai Pei-lin (白培霖) said by telephone.

Nanya Technology, based in Taoyuan, expanded output by 12 percent from July, primarily because it has made further progress in migrating more than half of its output to next-generation 50-nanometer technology from 75-nanometer technology.

The output expansion helped offset a month-on-month price decline of 6 or 7 percent last month, Pai said.

Looking ahead, Pai said “output will grow further this month. We are negotiating prices with our customers, but we don’t expect to see any big change.”

Contract price is likely to drop a further single-digit percentage point this month from last month amid slower-than-expected PC replacement demand from corporations as information from customers showed, Pai said, adding that consumer demand also remained weak.

Inotera Memories Inc (華亞科技), Nanya’s computer memory chip joint venture with US ­memory chipmaker Micron Technology Inc, also increased output for the second straight month after removing a major bottleneck by switching from trench to stack technology.

Inotera expects to complete migrating the plant’s total capacity of 130,000 12-inch wafers a month to 50-nanometer technology later this year. Half of Nanya Technology’s output came from Inotera.

Generally speaking, chipmakers can double the output of a 12-inch factory by migrating to 50-nanometer technology from 75-nanometer, saving 50 percent on costs.

Inotera’s revenue rose slightly by 1.4 percent month-on-month, or 0.8-percent year-on-year, to NT$3.21 billion last month, slowed by the technological switch, according to the company’s statement.

The stock price of Nanya Technology and Inotera leapt 6.97 percent and 6.71 percent to NT$19.95 and NT$16.7, respectively, yesterday.

Meanwhile, Nanya Technology said in a stock exchange filing yesterday that it procured NT$567.44 million of equipment between March 17 and yesterday for production purposes, but did not name the suppliers.

In a separate exchange filing, Inotera also said it purchased NT$1.02 billion of equipment from Dainippon Screen Manufacturing Ltd between Aug. 30 and yesterday for production purposes.

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