Wed, Dec 05, 2012 - Page 13 News List

Restock demand boosts monthly sales of chipmaker Nanya Technology’s products

By Lisa Wang  /  Staff reporter

Nanya Technology Corp (南亞科技), the nation’s biggest PC DRAM chipmaker, yesterday posted the highest monthly sales in five months on the back of restock demand from PC makers and demand for its non-PC chips for mobile devices.

Revenue expanded 19 percent to NT$26.69 billion (US$917 million) last month, compared with October’s NT$22.43 billion, after shipments soared at a 23.7 percent month-on-month rate.

On an annual basis, October revenue rose 10.2 percent from NT$24.22 billion.

Average selling prices declined 3.4 percent last month from the previous month, the chipmaker said.

“Demand for our niche products, including memory chips for digital TVs, set-top boxes and tablets, is stronger than we expected during the peak season,” a company official with Nanya’s public relation division said on the phone.

“Demand came mostly from China and Japan,” said the official, who requested not to be named.

In addition, PC customers were restocking DRAM chips on the back of stable demand for desktop computers, Nanya said.

Growth was also driven by improved supply-and-demand conditions after major DRAM chipmakers cut production. Nanya reduced its production 20 percent last month from a month ago.

“The inventory level returned to healthy level,” the official said.

In October, Nanya said that it expected PC DRAM chips to account for less than half of the company’s revenue in the second half of this year, decreasing to around 10 percent in 2014.

Inotera Memories Inc (華亞科技), a joint venture between Nanya and US memorychip maker Micron Technology Inc, yesterday said revenue inched up 0.4 percent to NT$2.97 billion from NT$2.96 billion in October.

Last month’s figure marked the highest level since July and represented a 2.5 percent increase from NT$2.898 billion in November of last year.

Memorychip maker Powerchip Technology Corp (力晶科技) yesterday said revenues dropped around 14 percent to NT$2.17 billion last month from NT$2.52 billion in October, after slashing 50 percent production of its PC DRAM chips.

Last month’s revenues hit their lowest level in eight months.

“Because of prolonged price slump in standard DRAM chips, the company has begun cutting production of such chips,” Powerchip spokesman Eric Tang (譚仲民) said in a statement yesterday.

However, Powerchip was increasing capacity for its contract chip manufacturing as demand has exceeded supply on growing end demand for handsets and other mobile devices, Tang said.

On an annual basis, revenues grew 7.15 percent from NT$2.03 billion, according to Powerchip.

Shares of Nanya Technology and Inotera rallied 6.77 percent and 6.87 percent to NT$1.42 and NT$2.49 yesterday.

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