Sat, Sep 07, 2013 - Page 14 News List

Nanya Technology revenue shrinks on slow shipments

By Lisa Wang  /  Staff reporter

Nanya Technology Corp (南亞科技), the nation’s biggest DRAM chipmaker, yesterday posted its weakest revenue in six months, but said its growth momentum should recover on the back of increasing demand.

Revenue last month shrank for the fourth consecutive month to NT$3.51 billion (US$117 million), down 15.1 percent from NT$4.14 billion in July, but up 53.3 percent from NT$2.29 billion in August last year.

Shipments fell 15 percent last month, with the company sourcing fewer chips from Inotera Memories Inc (華亞科技), a joint venture with US memorychip maker Micron Technology Inc, based on new supply agreements inked early this year.

This month, revenue is expected to be flat or to rise slightly, as chip prices edge up on rising demand and concern over short supply, company spokesman Lee Pei-ing (李培瑛) said by telephone.

“A lot of new devices from big names such as Apple, Samsung and Asustek (華碩) will boost demand for DRAM chips,” Lee said.

“The fire at SK Hynix Inc’s Chinese plant will cause a supply constraint, though we do not know how big the impact will be,” he added.

Growth momentum would extend into the next quarter, thanks to sales of new game consoles from Microsoft and Sony, and the launch of new ultra-high-resolution 4K2K televisions, Lee said.

These new devices consume more DRAM chips than their predecessors, he added.

Nanya Technology expects revenue from DRAM used in non-PC devices to rise to 70 percent of total sales from 65 percent now, Lee said.

In addition to PC DRAM, Nanya Technology makes DRAMs for mobile phones, tablets, digital TVs and video game consoles.

Inotera yesterday reported record-high revenue of NT$5.57 billion for last month. The figure was up 3.2 percent from NT$5.4 billion in July and 94.8 percent from NT$2.86 billion in August last year.

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