Wed, Sep 04, 2019 - Page 12 News List

Nanya raises shipments forecast

BULLISH OUTLOOK:The local chipmaker expects demand for DRAM to pick up this quarter on additional supply of Intel Corp processors and new smartphone launches

By Lisa Wang  /  Staff reporter

DRAM maker Nanya Technology Corp (南亞科技) yesterday raised its shipments forecast for this quarter to a 25 percent quarter-on-quarter incrase as stronger-than-expected demand boosted last month’s revenue to the highest so far this year.

Revenue last month rose 14.12 percent to NT$5.22 billion (US$166.1 million), compared with NT$4.58 billion in July, the highest monthly revenue since November last year.

On an annual basis, revenue contracted by 36.57 percent from NT$8.23 billion, the smallest annual decline since February.

In the first eight months of the year, cumulative revenue fell 43.78 percent to NT$33.61 billion from NT$59.78 billion last year.

Shipments last month increased by a high single-digit percentage from July, the chipmaker said in a statement.

“Revenue rose mainly due to an increase in demand during the peak season,” Nanya said in a statement.

The robust demand also helped lift average selling prices by a low single-digit percentage month-on-month, supporting the company’s forecast that improved demand would bolster memorychip prices in the third quarter.

Overall, DRAM prices in the third quarter are expected to fall at a less drastic rate compared with a dip of 15 percent in the second quarter, the company said. “Better demand is leading to faster shipment growth than the company’s original guidance for the third quarter,” Nanya said. “DRAM supply-demand dynamics are stabilizing, as all application segments show increased demand in the peak season.”

The company’s 25 percent quarterly growth forecast for shipments this quarter is an improvement from its previous estimate of 15 percent growth in July.

At that time Nanya said it was aiming to increase shipments by a single-digit percentage from last year.

The company also said that it expected demand in the three major application segments — PCs, servers and consumer electronics — to pick up this quarter on additional supply of Intel Corp processors and new smartphone launches.

About 70 percent of Nanya’s revenue in the first half came from consumer electronics such as set-top boxes and smart speakers.

The improved demand would help reduce inventory levels at the world’s major memorychip makers, which have been at historically high levels since the third quarter last year, the chipmaker said.

Nanya plans to allocate NT$7 billion to capital expenditure this year, about one-third of last year’s NT$20.4 billion.

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