Nanya, Inotera see losses widen in 3Q12

Josephine Lien, Taipei; Steve Shen, DIGITIMES [Wednesday 24 October 2012]

Nanya Technology saw its net losses widen to NT$10.09 billion (US$344.04 million) or NT$0.64 per share in the third quarter of 2012, while fellow company Inotera Memories posted a loss of NT$4.39 billion or NT$0.81 per share during the same period.

In order to stem its losses, Nanya will transform into an OEM supplier of niche memory products, while gradually phasing out from the commodity DRAM chip market, according to company president Charles Kao.

Nanya will cut capacity for PC-use DRAM chips by 20% starting the fourth quarter of 2012 and will discontinue supplying commodity DRAM chips to clients by mid-2013, Kao said. In addition, Nanya will also suspend marketing of its Elixir own-brand DRAM modules before year-end 2013.

Nanya is cutting its supply capacity by reducing the production of DRAM chips at Inotera, which has a production capacity of 130,000 DRAM chips from its 12-inch fab.

Since Nanya and Micron Technology are sharing Inotera's capacity, the 20% capacity cut by Nanya means a reduction of 13,000 chips at Inotera.

Nanya also said its production of 30nm chips will reach 40,000 units a month in 2013, while rolling out 15,000 DRAM chips using 42nm and 50nm processes for designated clients.

Meanwhile, Inotera plans to ramp up the production of 30nm chips to 60,000 units a month by the end of 2012 from 50,000 units currently, and to 100,000 units by April 2013, according to the company.

Inotera capex spending totaled NT$3.1 billion in the first three quarters of 2012 and will reach NT$4 billion by the end of the year, noted the company.