DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said it plans to invest about NT$300 billion (US$10.66 billion) to build a 12-inch fab to produce 10-nanometer chips, as demand for memory chips for 5G, artificial intelligence (AI) and consumer electronics applications soars.
It is the chipmaker’s first major capacity expansion in four years. Nanya Technology last invested about NT$200 billion for its process technology migration from 30 nanometers to 20 nanometers and 10 nanometers.
“We have little room [for further expansion] at existing factories. Nanya Technology needs to continue investing on developing new process technologies and new products, and expand capacity to ensure sustainable growth,” Nanya Technology president Lee Pei-ing (李培瑛) told reporters on the sidelines of a news conference in New Taipei City.
Photo: Chen Hsin-yu, Taipei Times
On the demand side, the DRAM market is expected to grow at an annual pace of 15 to 25 percent, fueled by a variety of applications from 5G, AI, automotive, industrial and Internet of Things devices, Lee said.
The world’s major DRAM suppliers are expanding capacity to match an anticipated growth in demand, he added.
Nanya Technology expects its output for this year to be flat or to increase slightly from last year, after an annual expansion of 35 percent last year.
The new 12-inch fab, to be built in New Taipei City’s Taishan District (泰山), would add 45,000 12-inch wafers to the firm’s monthly capacity of 70,000 equivalent-
wafers, helping it to capture new growth opportunities, Lee said.
The chipmaker expects the fab to start commercial shipments in 2024, with a monthly capacity of 15,000 wafers in the first phase.
With the introduction of more advanced technologies, the new fab would help Nanya Technology broaden its product portfolio and expand its customer base from about 800, Lee said.
The company plans to deploy 10-nanometer process technology, developed entirely by the chipmaker, he said.
Nanya Technology had joined forces with major DRAM chipmakers, including Micron Technology Inc, to develop new-generation process technologies.
The company aims to lift its server DRAM share to about 10 percent of its total revenue, from 5 percent, Lee said.
The chipmaker generates up to 70 percent of its revenue from supplying DRAM used in consumer electronics, such as set-top boxes and game consoles.
Nanya Technology said it has no fundraising plans for the near term, as it had accumulated NT$686.7 billion as of the end of last quarter.
The firm’s capacity expansion plan comes amid DRAM supply constraints. Market researcher TrendForce Corp (集邦科技) yesterday raised its DRAM price forecast for the current quarter due to strong demand for PCs and servers amid the COVID-19 pandemic.
The average selling price of DRAM is expected to rise 18 to 23 percent, up from a range of 13 to 18 percent estimated previously, TrendForce said.
DRONE CENTRAL: Taiwan aims to become Asia’s democratic hub for drones, with most exports focused on high-quality military-grade models, an official said Taiwan’s drone industry is expected to expand significantly by 2030, producing 100,000 units per month and exporting half of them, the Ministry of Economic Affairs said yesterday. Current drone production capacity is about 15,000 units per month, but the industry can quickly scale up as demand increases, Industrial Development Administration Director-General Chiou Chyou-huey (邱求慧) told a news conference in Taipei. Taiwan’s drone output grew 2.5-fold last year to NT$12.9 billion (US$408.3 million) under a government program to develop the uncrewed vehicle sector, he said. The Executive Yuan in October last year approved plans to invest NT$44.2 billion into domestic production of uncrewed aerial
A signaling system malfunction disrupted high-speed rail (HSR) services beginning at 8am today, with trains temporarily reduced to three northbound and three southbound trains per hour as authorities conduct inspections. The malfunction occurred on a section of track in Miaoli County during pre-operation checks early this morning, forcing northbound and southbound trains to use a single track, the HSR operator said. The regular schedule has been replaced with three hourly trains offering only nonreserved seating in each direction, stopping at every station, it said, adding that business class cars would still have reserved seating. Departures from terminal stations are scheduled at the top
WARNING: China should stop engaging in actions that undermine regional peace and stability, as it would only build resentment among people across the Strait, the CGA said China has deployed more than 100 navy, coast guard and other vessels in waters from the Yellow Sea to the South China Sea and the western Pacific since US President Donald Trump and Chinese President Xi Jinping (習近平) met in Beijing, National Security Council Secretary-General Joseph Wu (吳釗燮) said yesterday. “In this part of the world, #China is the one & only PROBLEM wrecking the #StatusQuo & threatening regional peace & stability,” Wu wrote on X. In a separate post, he said Beijing was coercing Taiwan’s maritime domain, calling it illegal and provocative, after the Coast Guard Administration (CGA) expelled a
VERBOSE VESSELS: A CGA cutter and a China Coast Guard exchanged verbal barbs for more than a day in Taiwanese-controlled waters before the Chinese vessel left The Taiwanese and Chinese coast guards had a standoff near the strategically located Pratas Islands (Dongsha Islands, 東沙群島) in the north of the South China Sea, the Coast Guard Administration (CGA) said yesterday. The two sides engaged in intense radio exchanges over sovereignty claims during the 33-hour standoff. China Coast Guard vessel 3501 eventually left the restricted waters, 26.6 nautical miles (49.2km) west of the Pratas Islands, at 5pm yesterday, the CGA said. Lying approximately between southern Taiwan and Hong Kong, the Taiwan-controlled Pratas are seen by some security experts as vulnerable to Chinese attack due to their distance — more than
RSS