Nanya Technology Corp (南亞科技) yesterday raised its capital spending by about 67 percent for this year to NT$9.2 billion (US$302.8 million) as the DRAM chipmaker aims to focus on 20-nanometer (nm) capacity expansion and 10nm-class technology development.
The company’s board of directors yesterday approved the capital spending budget.
Nanya Technology last year capped its capital spending at NT$5.5 billion to cope with an industry-wide supply glut.
Last month, it said that it could save significantly by developing its own advanced technology, rather than licensing it from long-term partner Micron Technology Inc.
The company also aims to increase productivity by 30 percent by migrating to 10nm-class technology, from 20nm, which would lower manufacturing costs.
It is scheduled to start pilot production of the new chips in the second half of this year.
Nanya Technology initially plans to use the next-generation technology to produce 8GB low-power DDR4 and high-density DDR5 chips used in consumer electronics, smartphones, laptops and PCs, it said.
The board of directors approved a cash dividend distribution of NT$1.5 per share, representing a payout ratio of 46.58 percent, based on last year’s earnings per share of NT$3.22.
The board also approved NT$800 million in employee bonuses and compensation.
Those proposals are subject to shareholder approval during an annual general meeting on May 28.
Separately, contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said that its board of directors approved a cash dividend of NT$0.75 per common share, its highest in nine years.
The distribution represents a payout ratio of 91.46 percent, compared with last year’s earnings per share of NT$0.92.
UMC’s board also approved NT$20.84 billion in capital spending for this year, mainly for 28nm capacity expansion at its 12-inch fab in Xiamen, China.
The board directors also approved the issuance of 233 million restricted shares for employees and NT$1.13 billion in employee bonuses and compensation.
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