DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said it expects a mild decline in revenue this year as mounting inflation is depressing spending on consumer electronics, which has led to an inventory correction from PC and smartphone companies.
The correction is expected to extend into the next quarter and is likely to last through the fourth quarter, defying the traditional business pattern for the chip industry.
The third quarter is usually a peak season, Nanya said.
Photo: CNA
“There are lots of black swan events this year. Mounting inflation, in particular, has significantly dampened consumer confidence and their purchasing power,” Nanya president Lee Pei-ing (李培瑛) told reporters on the sidelines of a groundbreaking ceremony for the company’s new factory in New Taipei City’s Taishan District (泰山).
“Nanya Technology has done quite a good job in the first half of this year. We hope [revenue] would drop only slightly for the whole year of this year, compared with last year,” Lee said.
Aside from PCs and smartphones, the adverse effect of inflation is likely to spread to server DRAM demand, Lee said.
Server buyers might start to tighten their capital expenditures in the final quarter of the year, he added.
Nanya’s revenue inched up 0.04 percent to NT$32.74 billion (US$1.1 billion) in the first five months of this year, after posting its lowest monthly revenue last month as an uneven supply of key components worsened due to China’s lockdowns.
Despite the slowdown, Nanya does not plan to scale back this year’s planned capital spending of NT$28.4 billion, but some payments might be deferred to next year due to delays in equipment delivery amid a shortage of key components, Lee said.
The chipmaker plans to adjust capacity allocations to cope with the short-term shocks, as it believes the DRAM industry would grow in the long term, given its vital status in the digital transformation, Lee said.
The company serves more than 800 customers with diversified products, he said.
PC DRAM accounts for only about 20 percent of the company’s total revenue, he said.
The company plans to invest NT$300 billion in the new 12-inch fab. That would add 45,000 12-inch wafers to the firm’s monthly capacity of 70,000 wafers, helping it to capture new growth opportunities.
The chipmaker expects the fab to start commercial shipments in 2025 rather than in 2024, with a monthly capacity of 15,000 wafers in the first phase.
The company plans to deploy 10-nanometer process technology, developed entirely by the chipmaker, he said.
It also plans to use extreme ultraviolet lithography, or EUV, tools when the chipmaker starts producing chips using fourth-generation 10-nanometer technology, it said.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan
RSS