Thu, Jan 19, 2012 - Page 12 News List

Nanya declares smaller Q4 loss

PRICE VOLATILITY:Prices dropped 12% after a 32% plunge in Q3, though the firm expects a rebound this quarter and plans to spend NT$3.4bn on equipment

By Lisa Wang  /  Staff Reporter

Nanya Technology Corp (南亞科技), the nation’s biggest PC DRAM chipmaker, yesterday posted a smaller loss for the fourth quarter, supported by a 7 percent quarterly increase in shipments and a less severe price decline.

Losses improved to NT$10.99 billion (US$367 million) in the final quarter of last year, compared with NT$11.95 billion in the third quarter, according to the company’s financial statement. Prices dropped 12 percent quarter-on-quarter in the fourth quarter after plunging 32 percent in the third quarter.

Nanya expects prices to rebound mildly this quarter because of low inventory levels, while the company’s output would be unchanged from the last quarter, company spokesman Pai Pei-lin (白培霖) said by telephone.

“We believe chip prices hit bottom in December. Prices started bouncing back by low-single digits [month-on-month] in January and we expect the uptick to extend to February,” Pai said.

The Taoyuan-based chipmaker said it plans to spend NT$3.4 billion on new equipment this year, about one-third of the NT$10.9 billion budgeted for last year.

Continuing its move away from PC DRAM, Nanya said it is scheduled to start volume production of mobile DRAM chips supporting the 4G Long Term Evolution technology in the current quarter, using advanced 30 nanometer technology.

This year, Nanya expects non-PC chips to account for as much as 40 percent of its revenues.

Last year, Nanya’s loss widened to a record high at NT$39.88 billion after chip prices dipped 55 percent year-on-year amid oversupply and sagging demand. The company lost NT$15.31 billion in 2010.

Separately, Inotera Memories Inc (華亞科技), a PC DRAM venture between Nanya and US memory chipmaker Micron Technology Inc, yesterday said losses narrowed to NT$6.03 billion from a third--quarter loss of NT$7.02 billion.

However, the fourth--quarter loss was also an increase on a loss of NT$4.67 billion in the fourth quarter of 2010.

Inotera said it plans to axe capital spending this year to NT$4 billion, from last year’s NT$11.6 billion.

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