Nanya Technology Corp (南亞科技) and Inotera Memories Inc (華亞科技), two memorychip manufacturing arms of conglomerate Formosa Plastics Group (台塑集團), could extend their losses this year amid weakening global demand after they reported massive losses last year, an analyst said yesterday.
“Global demand for DRAM chips remains weak,” Grand Cathay Securities (大華證券) analyst Mars Hsu (徐振家) said. “It is possible that DRAM prices will be depressed and continue to squeeze the two companies’ profitability this year.”
Nanya announced on Wednesday that it posted NT$39.88 billion (US$1.33 billion) in net losses last year, compared with NT$15.13 billion in net losses recorded in 2010.
In the fourth quarter alone, the company incurred NT$10.99 billion in net losses after it witnessed its average selling price fall 12 percent during the period.
Inotera said it registered NT$21 billion in net losses last year compared with NT$10.66 billion in net losses in 2010, after the company posted NT$6.03 billion in net losses for the fourth quarter because of falling shipments.
Although Nanya said it expects DRAM contract prices to continue to rebound this year after a mild recovery seen this month, Hsu said he is not so optimistic.
“The recovery in pricing was pretty much a seasonal factor because of a buying spree ahead of the Lunar New Year holiday and it remains to be seen whether the upside will continue,” Hsu said.
Hsu said Taiwanese memorychip makers have just upgraded their production technology to a 40-nanometer process from a 50-nanometer process, while their South Korean rivals, such as Samsung Electronics Co, have commenced using a more advanced 28-nanometer process.
“Nanya and Inotera still encounter higher production costs compared with their South Korean rivals, and the weakening pricing is expected to deal a serious blow to the two companies,” Hsu said.
To tackle the fragile global demand, Nanya and Inotera said they have decided to cut their capital expenditure by 67 percent this year from a year earlier to NT$7.4 billion.
They are also planning to upgrade their production technology to a 30-nanometer process this year to lower operating costs and boost their competitiveness.
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
SECTOR LEADER: TSMC can increase capacity by as much as 20 percent or more in the advanced node part of the foundry market by 2030, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to lead its peers in the advanced 2-nanometer process technology, despite competition from Samsung Electronics Co and Intel Corp, TrendForce Corp analyst Joanne Chiao (喬安) said. TSMC’s sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2-nanometer process market this year, Chiao said. The world’s largest contract chipmaker is scheduled to begin mass production of chips made on the 2-nanometer process in its Hsinchu fab in the second half of this year. It would also hold a ceremony on Monday next week to
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
RSS