DRAM chipmaker Nanya Technology Corp’s (南亞科技) board yesterday approved company president Charles Kau’s (高啟全) retirement, while downplaying analysts’ concern about intensifying competition from China amid reports that Kau is moving to a Chinese firm.
The board announced that vice president Lee Pei-ing (李培瑛) would fill the vacancy left by Kau, who is widely expected to work for China’s state-backed Tsinghua Unigroup Ltd (清華紫光) as it expands into DRAM manufacturing.
Kau is to retain his seat on Nanya Technology’s 15-member board as well as his chairmanship of Inotera Memories Inc (華亞科技) — a joint venture between Nanya and US-based Micron Technology Inc — for the moment, Lee said.
Photo: CNA
“Since Kau has not quit his job at Inotera, it is likely that he will be designated as a representative of Micron to assist Tsinghua Unigroup” in developing its DRAM business, Taishin Securities Investment Advisory Co (台新投顧) said in a research note yesterday.
Taishin Securities said Taiwanese DRAM makers’ competitiveness and long-term market position would be at risk if Tsinghua Unigroup secures DRAM manufacturing technology from Micron and receives assistance from an industry veteran like Kau.
Nanya Technology generates between 25 percent and 30 percent of its revenue from China.
Tsinghua Unigroup, China’s largest chip designer, in July signaled its interest in the DRAM business when it tried to acquire Micron for US$23 billion, but the US firm rejected the offer.
On Monday, Nanya Technology said Kau would help push for a three-way cooperation between China, Taiwan and the US in the DRAM business.
However, Lee yesterday said that the company “cannot comment further on such a partnership since it is uncertain about Tsinghua Unigroup’s future business development, while Kau has not clarified his new job.”
He added that the company believes China would not pose a threat to Taiwanese DRAM makers in the next three to five years.
Tsinghua Unigroup is still in the stage of making equity investments, rather than investing in any plants to produce DRAM chips, Lee said.
Nanya Technology’s operation and technology migration roadmap will not be affected by Kau’s retirement, he said.
The company will restart a fundraising by the end of this year to seek between NT$15 billion and NT$20 billion (US$455.4 million and US$607.2 million) to finance its technology upgrade, he added.
Taiwan Electrical and Electronic Manufacturers’ Association chairman (台灣電子電機公會) Guo Tai-chiang (郭台強) said that Nanya Technology must make every effort to keep Kau in Taiwan to maintain the nation’s competitive edge, and suggested offering tax incentives to retain talent in the nation.
The Ministry of Economic Affairs said it is drafting regulations that would allow tech company employees to defer income tax payment on their bonuses for five years and to tax preferred shares based on their book value rather than their market value.
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