Nanya Technology reports quarterly profit slightly up

By Lisa Wang  /  Staff reporter

Sat, Jun 22, 2013 - Page 14

Nanya Technology Corp (南亞科技), the nation’s biggest DRAM chipmaker, yesterday said net profits this quarter would be slightly higher than last quarter, benefiting from an increase in chip prices amid constant supply constraints.

“DRAM chips are still in short supply… Net profits will grow mildly in the second quarter, compared with the first quarter,” Nanya spokesman Lee Pei-ing (李培英) said by telephone after the company’s annual shareholders’ meeting.

The memorychip maker posted a quarterly net profit of NT$506 million (US$16.71 million) for the first three months of this year, marking its first quarterly net profit in three years. Nanya held a 3.8 percent share of the global DRAM market last quarter.

“Demand will remain quite good in the second half of this year. Chip prices will continue to go up mildly, as it did in the first quarter,” Lee said. “We are seeing steady growth from tablets, TVs, set-top boxes and mobile phones.”

In a change from the past years’ pattern, the DRAM industry has outgrown the PC industry, Lee said.

PC sales dropped 13.9 percent year on year, while the price of DRAM chips rebounded moderately, Lee said, adding that in addition to consumer electronics and mobile devices, the PC sector was also recovering.

Nanya’s shares plummeted 3.23 percent to NT$6 yesterday.

Prices of mainstream DDR3 128x8 DRAM chips slid 0.11 percent to US$1.825 per unit, according to Taipei-based market researcher TrendForce Corp (集邦科技).