DRAM chipmaker Nanya Technology Corp (南亞科技) expects an uptrend in demand and chip prices to extend into next quarter as telework and remote learning continue to drive purchases of servers and PCs, a company executive said yesterday.
As enterprises and schools sent their employees and students home to contain the spread of the novel coronavirus, people have to use computers to work or to learn remotely and connect to the Internet, Nanya Technology president Lee Pei-ing (李培瑛) told reporters on the sidelines of an annual general meeting in Taoyuan.
“Originally, people expected the second quarter would be a down [season]. Due to telework and online learning, the second quarter is turning out to be a stronger season,” Lee said.
Photo: Hung Yu-fang, Taipei Times
As the penetration rate of PCs remains relatively low and is unlikely to surge overnight, “I believe the [momentum] will last into the third quarter... There is a chance to see a further price uptick,” he said.
Rising data traffic has further spurred demand for faster Internet connections and driven demand for cloud-related equipment and networking devices, Nanya Technology said.
Nanya Technology’s latest comments echoed Micron Technology Inc’s optimism about next quarter. The US company overnight raised its revenue forecast to between US$5.2 billion and US$5.4 billion, from an earlier estimate of between US$4.6 billion and US$5.2 billion.
However, the COVID-19 pandemic and escalating US-China trade friction are creating greater uncertainty in the second half for the global economy, which has depressed demand for smartphones and consumer electronics, Lee said.
Asked about the US limiting Huawei Technologies Co’s (華為) access to chips from non-US suppliers, Lee said that Nanya Technology cannot comment on any single client.
The company would do its best to satisfy customers’ demand, while abiding by the law, he said.
Nanya Technology shareholders yesterday approved a cash dividend distribution of NT$1.5 per common share, representing a yield of 2.46 percent based on the chipmaker’s share price of NT$60.9 in Taipei trading.
The pandemic has not caused a serious delay in equipment delivery and the firm is on track to start initial production using 10-nanometer technology in the second half of this year, Nanya Technology chairman Wu Chia-chau (吳嘉昭) said.
The firm’s second-generation 10-nanometer products would begin pilot production in two years, he said.
The chipmaker this year boosted capital spending to NT$9.2 billion (US$306.21 million) to develop 10-nanometer technology.
Nanya Technology, which holds more than 4,200 patents, has established an 800-engineer research team.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in