Memory module supplier Adata Technology Co (威剛科技) yesterday said that contract prices for NAND flash memory are expected to rebound this quarter, following an uptrend in DRAM prices.
However, supply constraints would carry into next quarter, as recovering demand from automakers adds pressure to an industry beset by strong demand for notebook computers, smartphones and data centers, Adata said.
DRAM prices are expected to climb steadily after a trough at the beginning of December last year, with more marked hikes next quarter, Adata chairman Simon Chen (陳立白) said.
Photo: CNA
A severe supply crunch is expected in the second half of this year, Chen said.
The company, which is based in New Taipei City’s Sindian District (新店), said that it has built at least two months of DRAM chip inventory for its own use.
Adata’s financial performance this quarter would be significantly better than last quarter, Chen said.
Higher shipments of solid-state drives (SSD) have helped, he said.
The company’s revenue for last month grew 12.27 percent to NT$2.81 billion (US$99.41 million), compared with NT$2.5 billion in February last year, aided by a rise in DRAM prices and improved demand for NAND memory chips for SSD storage, Adata said in a statement.
On a monthly basis, revenue fell 4 percent from NT$2.93 billion.
DRAM products accounted for about 40 percent of the company’s total revenue last month, SSD products contributed 42 percent, and memory cards, flash drives and other items made up 16 percent, it said.
“Since the beginning of this year, customers have been placing orders aggressively,” Adata said. “Employees worked overtime during the Lunar New Year holiday to satisfy demand.”
The company said that it is bullish about this year’s business outlook, citing robust demand.
In the first two months of this year, revenue jumped 32.26 percent to NT$5.74 billion from NT$4.34 billion in the same period last year.
DRAM chipmaker Nanya Technology Corp (南亞科技) on Wednesday reported that last month’s revenue was its highest in 28 months, driven by higher prices.
Revenue rose 26.91 percent to NT$5.79 billion, from NT$4.56 billion in February last year, and grew 4.68 percent from NT$5.53 billion in January, Nanya said.
Nanya president Lee Pei-ing (李培瑛) in January said that he expected a DRAM price uptrend to continue throughout the first half of this year, and it might extend into the second half as the COVID-19 pandemic-driven stay-at-home economy, as well as a chip shortage, boosts DRAM consumption for notebook computers, tablets, networking devices and game consoles.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS