Fri, Mar 05, 2021 page12

• Adata expects rebound in prices

  ‘AGGRESSIVE ORDERING’: DRAM prices are expected to climb steadily, Adata head Simon Chen said, adding that a severe supply crunch is expected in the second half

  • By Lisa Wang / Staff reporter
  • • 
    • 
    • 

  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.

  

  Adata Technology Co chairman Simon Chen attends a news conference in Taipei on Aug. 22, 2019. The memory module supplier yesterday said that contract prices for NAND flash memory are expected to rebound this quarter, following an uptrend in DRAM prices, but supply constraints would carry into next quarter.

  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.
• Most Popular

  • 1

    Fraud fugitive returns to Taiwan after six years on the run

  • 2

    Most Chinese oppose force to unify Taiwan: survey

  • 3

    Memes, social media disinformation fuel support for Burkina junta leader

  • 4

    LA Dodgers beat Braves to secure 7th straight win

  • 5

    CIA releases two Mandarin-language videos inviting officials to spill secrets