Nanya Technology Exits Commodity DRAM for Niche Memories

Sep 07, 2012 Ι Industry In-Focus Ι Electronics and Computers Ι By Ken Liu, CENS
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Taipei, Sept. 7, 2012 (CENS)--Nanya Technology Corp. plans to exit commodity DRAM (dynamic random access memory) manufacturing to focus on niche memory chips for consumer electronics in one year, according to the newly appointed president, Charles Kao.

Kao said Nanya can't compete with Samsung Electronics Co., Ltd. and Hynix Semiconductor Inc. in the commodity DRAM market as it fills only 5% of the global demand, adding the company will survive by retooling capacity to 55,000 wafers of standard DRAM chips a month for niche memory manufacturing.

Coping with seismic changes in product strategy, the company, a member of the Formosa Plastics Group (FPG), is transferring part of its R&D personnel to affiliate Inotera Memories Inc. or its sales department.

Nanya had after-tax net loss of NT$17 billion (US$569 million), or NT$1.15 per diluted share, in the first half.

Kao said the company has concentrated on manufacturing of commodity, mobile and niche memory chips for consumer electronics, but will, after the adjustment, completely focus on branded manufacture of niche memory chips, adding the company will no longer invest massively in R&D and will negotiate with Micron Technology Inc. to revise cooperation.

Nanya has installed 30nm process capability and begun developing 20nm process technology, becoming another memory chipmaker to exit standard chip market after Winbond Electronics Corp. and PowerChip Semiconductor Corp.

Nanya Plastics Corp. has announced to invest NT$4.2 billion (US$141 million) in Nanya Technology's upcoming private equity placement to support the money-losing subsidiary, also to unload around 700 million Nanya Technology shares to attract new investors.
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