Nanya, Inotera see red, but raise capex
7/21/2010 4:54 PM EDT
SAN JOSE, Calif. -- Taiwan DRAM maker Nanya Technology Corp. and its affliate, Inotera Memories Inc., posted quarterly losses, but the two firms raised their capital spending.
Nanya Technology has approved a proposal to issue 600 million new common shares at a face value of NT$10 per share ($0.003). The funds will be used for the purchase of new equipment to upgrade to 42-nm technology, and to payback corporate debts. The company will raise its 2010 capital expenditure to NT$30 billion ($932.1 million), up from NT$22 billion ($683.5 million).
Inotera has raised its capital expenditures from the previous guidance of NT$52 billion ($1.6 billion) to NT$58 billion ($1.8 billion) for similar reasons. Nanya Technology is a standalone DRAM maker. Inotera is a joint venture between Nanya Technology and Micron Technology Inc.
As reported,the two companies were devising trench DRAM technology from now-defunct Qimonda. More recently, the Taiwan suppliers have moved to stacked DRAM as part of a joint venture with Micron.
Nanya also posted its results. Nanya’s quarterly sales revenue were NT$15.718 billion ($489 million), an increase of 11 percent compared to the first quarter in year 2010 and a 94 percent increase year-over-year. The company posted a net loss of NT$1.024 billion ($31.8 million) in the second quarter.
Nanya has been making 50-nm stacked DRAM parts, but it has been moving to 42-nm designs, based on Micron's technology. Nanya has pulled in its pilot runs schedule of 42-nm process technology into June 2010, a quarter ahead of the original plan. The volume production will be started in the fourth quarter of 2010.
In July 2010, Nanya’s current capacity in its own 300-mm fab (Fab 3A) will exceed 42,000 wafer starts per month (WSPM), mainly for 2-Gbit DDR3 DRAM products. The company expects to see bit shipment growth rate of 35 percent in year 2010.
Inotera Memories announced separate results for the second quarter of its fiscal year 2010, which ended June 30. Net loss was NT$1.810 billion ($56.3 million) on the back of sales revenues of NT$11.258 million ($350.3 million).
''The 2 percent decrease in sales revenues quarter-on-quarter was mainly due to a 14 percent increase in average revenues per wafer, offset by a 14 percent decrease in wafer shipments owing to a delay in 70-nm trench output resulting from longer cycle times as the company speeds up the capacity conversion
from 70-nm trench to the 50-nm stack process,'' according to Inotera. ''Consequently, final wafer starts in trench technology were pulled in by two weeks to the mid of July.''
The company said it is confident that its 50-nm wafer starts will catch up in August to the previous plan and that it will reach full utilization of 130,000 wafer starts per month in 50-nm stack technology by the end of the year as scheduled.
The 42-nm pilot runs are planned to commence in September 2010, and volume conversion is targeted to be completed around mid of 2011.