Thu, Jul 05, 2012 - Page 13 News List

Nanya Technology’s sales slide on sluggish demand

WEAKNESS:Inotera Memories, Nanya Technology’s DRAM joint venture with Micron Technology of the US, also posted a 0.6 percent drop in sales last month

By Lisa Wang  /  Staff reporter

Nanya Technology Corp (南亞科技), the nation’s biggest PC DRAM chipmaker, yesterday said revenue dropped 4.4 percent last month from a month ago, as weaker demand drove chip prices down for the first time since February.

Revenue fell to NT$3.27 billion (US$109 million) from a 12-month-high of NT$3.42 billion in May, the company said in a statement.

Nanya Technology, which generates half of its revenue from PC DRAM chips, said the average selling price slipped 1 percent month-on-month last month, while shipments fell 4 percent.

The Taoyuan-based chipmaker attributed the revenue decline to inventory reduction by the world’s major PC vendors last month and weaker end demand. The chipmaker counts Dell Inc as its biggest client.

On a quarterly basis, Nanya Technology’s second-quarter revenue rose 15 percent to NT$10.09 billion from NT$8.8 billion in the first quarter, but fell 15 percent from NT$11.47 billion the previous year.

This month, prices are likely to remain flat from last month amid PC makers’ cautious forecasts for the notebook industry in the third quarter, according to Nanya.

Last month, the company said it expected back-to-school demand to drive up revenue growth this quarter, but that seasonal demand would be less vigorous than usual.

Meanwhile, Inotera Memories Inc (華亞科技), a DRAM joint venture between Nanya Technology and US memory chipmaker Micron Technology Inc, yesterday reported that revenue last month shrank 0.6 percent month-on-month to NT$3.27 billion from NT$3.29 billion in May.

On an annual basis, revenue edged down 0.5 percent from NT$3.67 billion a year ago.

Although second-quarter revenue grew 21 percent to NT$9.56 billion from NT$7.93 billion in the first quarter, that was still down 6 percent from NT$10.16 billion a year ago, Inotera said.

On Tuesday, local rival Powerchip Technology Corp (力晶科技) reported a 2.5 percent monthly expansion in revenue for last month after transferring much of its capacity to the contract chip manufacturing business and raising prices.

In yesterday’s trading, shares in Nanya Technology fell 2.72 percent to NT$2.50, Inotera advanced 0.55 percent to NT$7.34 and Powerchip rallied 6.45 percent to NT$0.66.

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