DRAM chipmaker Nanya Technology Co (南亞科技) yesterday reported that its revenue last month increased month-on-month for the first time since November last year, as chip prices began picking up.
The increase of 4.78 percent largely matched the company’s forecast.
The New Taipei City-based company attributed the growth to an improvement in average selling prices and favorable foreign exchange rates.
Photo: Grace Hung, Taipei Times
Chip prices would climb this quarter, reversing a downtrend over the past three quarters, Nanya said.
Revenue last month expanded to NT$6.47 billion (US$224.89 million) from NT$6.43 billion in February, ending three consecutive months of decline, the company said.
That represented annual growth of 5.2 percent from NT$6.41 billion, it added.
First-quarter revenue dropped 6.78 percent to NT$19.95 billion, from NT$21.4 billion a quarter earlier. On an annual basis, revenue jumped 12.5 percent from NT$17.73 billion.
The company estimated that average selling prices for last quarter would decline by a low-single-digit percentage from a quarter earlier, an improvement from a decline of 5 percent in the final quarter of last year and 13 percent in the third quarter of last year.
DRAM prices would slip 5 percent quarter-on-quarter in the worst-case scenario, as the war in Ukraine and inflation pressures worldwide have weakened demand for PCs and consumer electronics, including smartphones, industry researcher TrendForce Corp (集邦科技) said.
As the server sector was the only one that continued to see robust demand, an oversupply of DRAM chips is expected this quarter, TrendForce said.
Prices of DRAM chips used in servers would be flat, or drop about 5 percent this quarter from last quarter, it said.
As for DRAM chips used in PCs, the quarterly price decline would range from 3 to 8 percent, as laptop makers become conservative about this year’s business outlook and trim shipment targets because of geopolitical tensions, TrendForce said.
As smartphone makers are also cautious about consumer demand, TrendForce forecast a price decline of zero to 5 percent for mobile DRAM chips.
Separately, Ample Electronic Technology Co (勤凱科技), which supplies conductive paste to passive components maker Yageo Corp (國巨), reported that its revenue last month was NT$102.42 million, down 29.88 percent year-on-year, but up 26.79 percent month-on-month.
First-quarter revenue dropped 32.78 percent annually to NT$283.27 million, the company said.
Following a rebound in demand last month, Ample said it is optimistic about its business this quarter because of customers’ inventory adjustments.
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