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September 23, 2017

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Chip-makers Nanya Tech, Inotera both report declines in June revenue

Nanya Technology and Inotera, two of the nation's major memory chip-makers, yesterday both reported sales declines in June.

The sales declines capped a winning streak for both firms over the past few months and came despite U.S. memory maker Micron's move to purchase Japan's Elpida, a development seen as positive for the memory industry.

For Nanya Tech, its June sales came to NT$3.27 billion, a decline of 4 percent month-on-month yet a rise of 5 percent year-on-year.

According to Nanya Tech, the contract prices of dynamic random access memory (DRAM) chips stayed flat in June, instead of showing an increase in May. Overall June DRAM prices fell an average 1 percent. Output, meanwhile, declined by 4 percent due to weakened demands in the market, it said.

Overall, Nanya Technology had sales of NT$18.9 billion for the first half, a decline of 14.9 percent from the same period last year.

Inotera, meanwhile, reported sales of NT$3.2 billion for June, a decline of less than 1 percent compared to May. The firm attributed the decline to shorter working days last month.

According to Nanya Tech, the positive impact of Micron's purchase of Elpida has yet to play out. The firm maintains a cautious outlook for the third quarter due to the global economic downturn and possible changes in consumer sentiment towards DRAM applications.

With Micron's purchase of Elpida as well as Rexchip, a joint venture between Elpida and Taiwan's Powerchip, it is set to become one of the top three DRAM makers in the world, the other two being Samsung and Hynix.

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