Inotera Memories Inc. (3474.TW) expects its bit shipments of memory chips to rise 50% in the second quarter from the previous three months because of improving market conditions, company President Charles Kau said Thursday.

In the first quarter, Inotera's bit shipments fell 51% from the previous quarter, Kau told reporters before an investor conference.

Inotera, a memory-chip joint venture between Nanya Technology Corp. (2408.TW) and U.S.-based Micron Technology Inc. (MU), said its board approved an issue of up to 2 billion new shares, and it expects to raise NT$20 billion from the share issue.

Inotera plans to use the majority of the funds to upgrade to 50-nanometer chip production technology, Kau said. He added the company wants to use the production technology starting in the third quarter.

-By Jessie Ho, Dow Jones Newswires; 88622 502-2557; jessie.ho@dowjones.com