Nanya Technology posts slight decline in revenue

By Lisa Wang  /  Staff reporter

Fri, Jun 07, 2013 - Page 13

Nanya Technology Co (南亞科技), the nation’s top DRAM chipmaker, yesterday posted its first monthly decline in revenue in four months after shipments dropped 4 percent sequentially.

Revenue shrank 4.2 percent last month to NT$4.6 billion from April’s NT$4.8 billion, according to a company statement.

The average selling price of the company’s products held steady last month from a month earlier, Nanya said.

On an annual basis, revenue surged 26.6 percent from NT$3.63 billion in May last year, the statement showed.

Looking ahead, company spokesman Lee Pei-ing (李培英) said chip prices would climb next quarter, benefiting from seasonal strong demand as customers are set to launch new products.

Nanya expects the average selling price to rise mildly this quarter from last quarter because of supply constraints. The shortage situation will persist throughout this year, Lee said.

This month, the average selling price is expected to be flat or rise slightly from last month, Nanya said.

Shipments are to drop this month from last month as the company is to receive fewer chips from its subsidiary Inotera Memories Inc (華亞科技) based on new supply contracts it signed in January in its efforts to shift away from the volatile commodity DRAM PC chip business.

Inotera is a DRAM joint venture between Nanya and Micron Technology Inc.

Nanya holds a 36 percent stake in Inotera, while Micron owns 35 percent.

However, the company still forecast its production in the current quarter would grow 20 percent from the first quarter, as planned, it said.

Separately, local memorychip maker Winbond Electronics Corp (華邦電子) yesterday posted a 0.35 percent month-on-month increase in revenue to NT$3 billion for last month, marking the highest level in 10 months. Compared with May last year, revenue dropped 1.39 percent.

Nanya’s shares fell 0.84 percent to NT$5.90 yesterday, while those of Winbond plunged 2.45 percent to NT$9.16.