Adata Technology Co (威剛科技), the nation’s biggest DRAM module supplier, yesterday said net profit tumbled about 60 percent last quarter from a quarter ago, as memory chip price hikes subsided due to seasonal slack PC demand.
Net profit sank to NT$310 million (US$10.3 million) during the quarter ending June 30, compared with NT$778 million in the first quarter, while earnings per share fell to NT$1.42 from NT$0.41.
The company’s gross margin shrank 11.26 percent last quarter, from 18.19 percent in the first quarter of the year.
Photo: Hung Yu-fang, Taipei Times
However, the company said it expects a quick recovery this quarter, supported by constrained supply of DRAM and NAND flash modules.
Supply of NAND flash memory chips might further be capped by the slow ramp-up of new 3D NAND flash memory chip production by major global suppliers, Adata said.
“The company has hit bottom in the second quarter in terms of profitability,” Adata said in a company statement. “Profits in the third quarter will be better than in the second quarter.”
The company forecast that short supply of DRAM chips would prompt a new wave of price hikes of perhaps more than 10 percent quarter-on-quarter this quarter, as seasonal demand picks up after a short break in the second quarter.
Net profit in the first half of the year more than quadrupled year-on-year to NT$1.1 billion, from NT$208.46 million in the same period last year. Earnings per share also rose to NT$5.04 from NT$0.97.
Gross margin improved to 14.82 percent in the first half, from 7 percent in the previous year.
Adata yesterday posted 4.72 percent drop in revenue for last month at NT$2.62 billion from NT$2.75 billion in June. That represented an annual growth of 45.44 percent from NT$1.8 billion.
DRAM modules accounted for 53.9 percent of last month’s overall revenue, while NAND flash memory modules made up 21.9 percent, the company said.
HORMUZ ISSUE: The US president said he expected crude prices to drop at the end of the war, which he called a ‘minor excursion’ that could continue ‘for a little while’ The United Arab Emirates (UAE) and Kuwait started reducing oil production, as the near-closure of the crucial Strait of Hormuz ripples through energy markets and affects global supply. Abu Dhabi National Oil Co (ADNOC) is “managing offshore production levels to address storage requirements,” the company said in a statement, without giving details. Kuwait Petroleum Corp said it was lowering production at its oil fields and refineries after “Iranian threats against safe passage of ships through the Strait of Hormuz.” The war in the Middle East has all but closed Hormuz, the narrow waterway linking the Persian Gulf to the open seas,
Nanya Technology Corp (南亞科技) yesterday said the DRAM supply crunch could extend through 2028, as the artificial intelligence (AI) boom has led the world’s major memory makers to dramatically reduce production of standard DRAM and allocate a significant portion of their capacity for high-bandwidth memory (HBM) chips. The most severe supply constraints would stretch to the first half of next year due to “very limited” increases in new DRAM capacity worldwide, Nanya Technology president Lee Pei-ing (李培瑛) told a news briefing. The company plans to increase monthly 12-inch wafer capacity to 20,000 in the first half of 2028 after a
Taiwan has enough crude oil reserves for more than 100 days and sufficient natural gas reserves for more than 11 days, both above the regulatory safety requirement, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday, adding that the government would prioritize domestic price stability as conflicts in the Middle East continue. Overall, energy supply for this month is secure, and the government is continuing efforts to ensure sufficient supply for next month, Kung told reporters after meeting with representatives from business groups at the ministry in Taipei. The ministry has been holding daily cross-ministry meetings at the Executive Yuan to ensure
RATIONING: The proposal would give the Trump administration ample leverage to negotiate investments in the US as it decides how many chips to give each country US officials are debating a new regulatory framework for exporting artificial intelligence (AI) chips and are considering requiring foreign nations to invest in US AI data centers or security guarantees as a condition for granting exports of 200,000 chips or more, according to a document seen by Reuters. The rules are not yet final and could change. They would be the first attempt to regulate the flow of AI chips to US allies and partners since US President Donald Trump’s administration said it rescinded its predecessor’s so-called AI diffusion rules. Those rules sought to keep a significant amount of AI
RSS