UPDATE:Taiwan DRAM Cos Post Consecutive Losses;See Better 2Q
30 Abril 2009 - 7:45AM
Dow Jones News
Taiwan's major memory-chip makers continued to suffer losses in
the first quarter on sharp falls in chip prices but expect market
conditions to improve from the second quarter.
Nanya Technology Corp. (2408.TW), Taiwan's largest maker of
dynamic random access memory chips by revenue as of the first
quarter, reported Thursday a first-quarter net loss of NT$10.51
billion, or NT$2.25 a share, wider than a net loss of NT$8.78
billion, or NT$1.88 a share, a year earlier.
It is Nanya's eighth consecutive quarterly loss, which is also
wider than the average NT$8.1 billion net loss forecast by five
analysts polled earlier by Dow Jones Newswires.
Revenue in the first quarter fell 32.5% to NT$6.17 billion from
NT$9.14 billion a year earlier, according to the company's monthly
filings.
"The demand is recovering, and I think the upward momentum will
continue through the third quarter," Nanya Spokesman Pei Lin Pai
said.
Economic stimulus measures around the world and China's
subsidies for purchases of computers in rural areas will continue
spurring demand for DRAM chips that are widely used in personal
computers, Pai said.
The company keeps its bit shipment growth forecast of 37% for
2009, slower than a 57% growth last year, Pai said.
Nanya plans to raise contract chip prices by 15%-20% for the
first half of May from the latter part of April, when the company
increased prices by up to 9% from early April.
With chip prices remaining under cash costs, Nanya and Inotera
Memories Inc. (3474.TW) - Nanya's chip affiliate - will focus on
advancing their production technology to 50 nanometers starting in
the third quarter, making the group the world's second to
mass-produce chips using the technology after South Korea's Samsung
Electronics Co., said Inotera President Charles Kau.
Yields of chips produced by 50-nanometer technology will be
double than those made by the current 75-nanometer technology and
thus help the companies to cut unit cost by half, Kau said.
The technology will be used to make 2-gigabit
double-data-rate-three (DDR3) chips, which are getting more popular
with their higher power efficiency and faster speed compared with
the current mainstream DDR2 chips, Kau said.
For the technology migration, Nanya budgets NT$13 billion of
capital expenditure for 2009, up from NT$12 billion last year, and
plans to issue less than 4 billion shares.
Inotera, a joint venture between Nanya and U.S.-based Micron
Technology Inc. (MU), expects its 2009 capital expenditure to be
NT$11.7 billion, down from NT$20 billion in 2008, and plans to
issue up to 2 billion new common shares to raise NT$20 billion, Kau
said.
Inotera expects its bit shipments of memory chips to rise 50% in
the second quarter from the previous three months because of
improving market conditions, Kau said.
In the first quarter, Inotera's bit shipments fell 51% from the
previous quarter, he said.
Inotera said its net loss for the three months ended March 31
widened to NT$5.32 billion, or NT$1.59 a share, from the
year-earlier NT$4.18 billion, or NT$1.25 a share.
Revenue in the first quarter fell 28% to NT$6.36 billion from
NT$8.8 billion a year earlier.
Meanwhile, Powerchip Semiconductor Corp. (5346.OT), the island's
second-largest DRAM maker by revenue, posted a net loss of NT$6.29
billion in the first quarter, also its eighth straight quarterly
loss, compared with a net loss of NT$9.74 billion a year
earlier.
Powerchip's first-quarter revenue fell 74% to NT$3.92 billion
from NT$14.84 billion a year earlier, according to monthly company
statements.
-By Jessie Ho, Dow Jones Newswires; 88622 502-2557;
jessie.ho@dowjones.com