DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday posted wider-than-expected losses for last quarter, primarily due to weak end-market demand for PCs, smartphones and consumer electronics amid an economic slowdown and geopolitical conflicts.
The losses of NT$1.49 billion (US$46.3 million) in the July-to-September quarter deteriorated from losses of NT$814 million in the previous quarter and marked the eighth quarterly loss in a row, company data showed. Earnings per share worsened to minus- NT$0.48 last quarter.
While the average selling prices of the company’s products climbed about 5 percent, Nanya Technology’s shipments and revenue plummeted 22 percent and 18 percent respectively last quarter from the previous quarter, it said.
Photo: Grace Hung, Taipei Times
“Artificial intelligence [AI] was the only segment enjoying booming demand. Demand for PCs, mobile phones and consumer electronics fell short of our exceptions, because of weakness in certain major economies,” Nanya Technology president Lee Pei-ing (李培瑛) said.
More than 60 percent of the world’s DRAM market remains in the doldrums, as servers only consume just over 30 percent of DRAM chips, Lee said.
Nanya Technology’s bottom line last quarter was also dragged by losses of NT$475 million stemming from power outages, foreign exchange losses of NT$324 million and an increase of NT$140 million in research expenses, the company said.
To turn around its business, Nanya Technology is gearing up for the production of DDR5 memory chips for AI devices later this year, Lee said.
DDR5 chips enjoy a price premium of 30 to 50 percent compared with DDR4 chips, along with better cost efficiency, Lee said, adding that the company expects the new chips to account for 15 percent of its total DRAM production.
Nanay Technology holds a lukewarm outlook for this quarter, as the wars in Ukraine and the Middle East, as well as high inventories in the market remain worrisome, although demand may improve slightly from last quarter, thanks to holiday season demand in the US and Europe, Lee said.
As the industry’s top makers continue boosting production of DDR4 chips to vie for bigger market shares, they might need two more quarters to digest inventories, Nanya Technology said.
Nanya Technology yesterday cut its capital spending for this year to NT$20 billion from an earlier budget of NT$26 billion, citing delays in equipment delivery.
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