Wed, Jul 30, 2014 - Page 13 News List

Nanya Technology posts 7% profit growth for Q2 DRAM chipmaker Nanya Technology

By Lisa Wang  /  Staff reporter, in TAOYUAN

DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday posted 7 percent sequential growth in operating profit for the second quarter, as stronger-than-expected demand for PCs and mobile devices boosted gross margin to an all-time high.

Nanya Technology expects gross margin and profitability to grow to further record-breaking figures this quarter, citing robust demand for memory chips across the board, including for servers and mobile phones, due to seasonal factors.

“We are seeing [last quarter’s] short supply extend into the third quarter. Demand is resilient,” Nanya Technology spokesman Lee Pei-ing (李培瑛) told reporters.

“Demand for PCs, especially from corporate users, began picking up in July, causing extra pressure on already tight supply,” Lee said.

He expected that the supply constraint would last throughout the second half of this year.

Operating income surged to NT$4.24 billion (US$141 million) last quarter, compared with NT$3.96 billion in the first quarter. Gross margin jumped to 43.8 percent last quarter due to a 5 percent improvement in manufacturing costs, from 40 percent in the previous quarter.

Net income dropped 0.7 percent sequentially to NT$6.08 billion in the quarter that ended on June 30, compared with NT$6.13 billion in the first quarter, according to the company’s financial statement.

Lee said the slight decline on losses of NT$400 million was due to foreign-exchange factors.

This quarter, the average selling price is expected to rise about 5 percent sequentially and shipments are expected to be flat, Lee said.

Inotera Memories Inc (華亞科技), a DRAM chip joint venture between Nanya Technology and Micron Technology Inc, yesterday said its net profit fell 6 percent to NT$10.62 billion last quarter, from NT$11.25 billion in the previous quarter, after booking NT$800 million in foreign-exchange losses for last quarter.

“We do not expect major foreign-exchange losses again this quarter,” Inotera spokesman Peter Shen (沈道邦) told a press conference. “We are optimistic about this quarter’s business.”

“We are seeing strong market demand and there will be room for a price uptick by about 5 percent to 10 percent [sequentially] as some market researchers forecast,” he said.

Gross margin is expected to rise further to hit a new record this quarter, compared with 56 percent last quarter, if chip prices increase as expected, Shen said.

Inotera expects wafer shipments to hold steady, or to drop 3 percent quarter-on-quarter this quarter, because of capacity loss during its pilot production of the most advanced 20-nanometer technology.

To keep shipments steady, Inotera has resumed operations at an idled 12-inch factory, Shen said.

Inotera plans to expand its output of 20-nanometer chips by the end of this year for applications including mobile networking, consumer appliances and other devices.

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