Fri, Apr 01, 2011 - Page 11 News List

Nanya’s customer demand to lead to faster price hikes

By Lisa Wang  /  Staff Reporter

Nanya Technology Corp (南亞科技), the nation’s biggest DRAM maker, said it expected vigorous customer demand to support faster price rises this month after it increased prices by up to 5 percent last month on growing concern over supply constraints, a company executive said yesterday.

“We feel price rises will be steeper this month, compared with March and February,” Nanya Technology spokesman Pai Pei-lin (白培霖) said by telephone. “We are seeing stronger customer demand.”

The company raised its contract price by between 3 percent and 5 percent last month from February after customers reduced excessive inventories.


DRAM supply could become tight in the short term as the March 11 earthquake in Japan and subsequent power outages have halted production at Shin-Etsu Chemical Co, the world’s top silicone wafer supplier, Pai said.

“Japan is an important source of 12-inch silicone wafers and it makes up a large share,” Pai said.

Silicone wafers are crucial in making DRAM chips.


The global supply of silicone wafers is expected to fall by between 20 percent and 25 percent after Shin-Etsu Chemical shut down factories in quake-affected areas, while resumption of production is uncertain amid power rationing, Taipei-based TrendForce Corp (集邦科技) said.

Nanya Technology expects the adverse impact of the earthquake to be “very limited,” Pai said.

Nanya primarily purchased silicone wafers from local supplier Formosa Sumco Technology Corp (台勝科), a venture between Japan's Sumo Techxiv and Nanya Technology's parent company Formosa Plastics Corp (台塑).

The firm's revenues grew 3 percent in February to NT$3.55 billion from NT$3.44 billion in January, thanks for price rebound.

Share price of Nanya Technology slipped 0.97 percent to NT$15.35, while the benchmark TAIEX index advanced 0.43 percent.

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