LONDON Nanya Technology Corp., a loss-making DRAM manufacturer, has recently decided to accept an offer from parent company Formosa Plastics Group to buy all outstanding equities for nearly NT$30 billion (about $1 billion), according to a Taiwan Economic News report.
Nanya (Taoyuan, Taiwan) is one of several troubled Taiwanese DRAM companies. It is associated with Micron Technology Corp. (Boise, Idaho), with which it has a joint venture called Inotera. Nanya is planning to issue 15 billion shares in a private placement that is expected to close by the end of 2011.
The company has said it is making progress on reducing the cost of production of 42-nm DRAMs, has begun 4-Gbit production on 30-nm and is cooperating with Micron on 20-nm process technology, the report said.
Taiwanese DRAM makers have suffered in recent years as only the leading makers Samsung and Hynix have been able to show any kind of profit. There had been discussion of government support to combine and finance Taiwan DRAM makers such as PowerChip Semiconductor Corp. and ProMOS Technologies Inc.
In the nine months to Sept. 30, 2011, Nanya made a net loss of NT$28.9 billion (about $950 million) on sales revenues of NT$29.8 billion (about $980 million).
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