Micron's DRAM partners post losses
1/24/2011 6:40 PM EST
SAN JOSE, Calif. - Amid a drop in capital spending, Taiwan DRAM maker Nanya Technology Corp. and its joint venture, Inotera Memories Inc., continue to spill red ink.
Taiwan's Inotera is a joint venture between Nanya and Micron Technology Inc. Both Inotera and Nanya obtained their stack DRAM technology from Micron. The Taiwan entities are ramping up 42-nm DRAM products, with a 3x-nm offering in the works.
Nanya said its quarterly revenue was NT$11.790 billion ($405.2 million), a decrease of 21 percent compared to the third quarter in year 2010 and a 29 percent decrease year-over-year. The loss for the quarter was NT$10.122 billion ($348.8 million), compared to a loss of NT$2.267 billion ($77.9 million) in the previous quarter and a net profit of NT$199 million ($6.9 million) a year ago
Nanya and Inotera are ramping up DRAM products, based on a stack technology from Micron. The Taiwan DRAM makers were struggling to ramp the technology at the 50-nm node. Now, they are attemping to get 42-nm stack technology off the ground.
Nanya's 42-nm DRAM process technology started mass production in the fourth quarter of 2010. It is geared for 2- and 4-Gbit DDR3 memory products. Meanwhile, the next-generation 3X-nm stack technology is scheduled to start pilot run in the second quarter of 2011.
Nanya’s current capacity in its own 300-mm fab (Fab 3A) is 50,000 wafer starts per month (WSPM), and is expected to reach 60,000 WSPM by the end of first half of 2011.
Nanya's capital expenditures for year 2011 is estimated to be NT$12 billion ($412.4 million), 48 percent down compared to 2010.
Inotera separately reported its results for the fourth quarter. Net loss was NT$4.602 billion ($158.1 million), on the back of sales revenue of NT$8.715 billion ($299.5 million).
Sales were down 13 percent quarter-over-quarter and down 32 percent a year ago. In the third quarter, Inotera posted a loss of NT$2.621 billion ($90.2 million).
''The 13 percent decrease in sales revenues quarter-on-quarter was mainly due to a 20 percent sequential increase in wafer shipments that was more than offset by a 27 percent decline in average sales revenues per wafer, mainly as a result of a significant decline in our customers’ average selling prices of
DRAM products in the market place,'' according to Inotera.
Inotera has completed its conversion to 50-nm technology and reached its full capacity of 130,000 wafer starts per month in December 2010. The company plans to commence the 42-nm volume ramp in the first quarter of 2011.
Furthermore, pilot runs of a 4Gb DDR3 product in next-generation 3xnm technology are scheduled to start around mid of 2011.