Sat, Mar 03, 2012 - Page 12 News List

Nanya reports bigger annual loss in January

RECOVERY?Both Nanya and Powerchip expect improving DRAM prices, spurred by the fall of Japan-based Elpida, could help their bottom lines

By Lisa Wang  /  Staff Reporter

Nanya Technology Corp (南亞科技), the nation’s top DRAM chipmaker, yesterday said its losses widened from a year ago to NT$3.91 billion (US$132.7 million) in January because of falling chip prices, but added that a recent price rebound has helped improved its finances.

Combined losses in January and December narrowed to NT$8.09 billion, 16 percent less than a year earlier, Nanya Technology said in a filing to the Taiwan Stock Exchange. No details were provided.

Nanya disclosed its latest financial statement at the request of the Taiwan Stock Exchange.

Separately, local memorychip maker Powerchip Technology Corp (力晶科技) yesterday said that its revenue last month rose 5.56 percent from a month earlier as strong demand for smartphones and other mobile devices fueled demand for its chips.

The company has been diversifying its focus from DRAM chips.

Revenues expanded to NT$1.71 billion last month, from NT$1.62 billion in January, Powerchip said in a company statement. However, on an annual basis, revenues last month dropped more than half from NT$3.51 billion as DRAM prices plunged.

“Non-PC DRAM chip business increased and accounted for about half of our total capacity of 12,000 wafers a month, helped by robust demand for smartphones and other mobile products,” Powerchip spokesman Eric Tang (譚仲民) said by telephone.

“Our customers are booking capacities ahead [of schedule],” Tang said.

Tang said the rise in non-PC DRAM business would help speed up Powerchip’s transformation and help stabilize the company’s financial situation.

In addition, the DRAM chip market has turned up. With Japan-based Elpida Memory Inc’s filing for restructuring driving up chip prices lately, Powerchip plans to increase its DRAM output to about 40,000 wafers a month, Tang said.

To cut costs, Powerchip said it was upgrading its technology to 30-nanometer process technology for DRAM production. It has started test runs of the new technology and expects to ramp up volume gradually from next quarter.

The price of benchmark DRAM chips slid 0.91 percent to US$0.98 per unit yesterday after a three-day rally on speculation of a supply drop after Elpida, Japan’s sole DRAM chipmaker, sought bankruptcy protection on Tuesday, according to TrendForce Corp’s (集邦科技) real-time pricing information.

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