Nanya Tech to lay off 200, transfer 400 to other units

Wu Chia-chao, chairman of Nanya Technology, also said the firm will transfer another 400 employees to other units of the Formosa Plastics Group (FPG), of which Nanya Technology is a member.

The firm will in the future focus on memory chips for the consumer electronics and mobile sectors, he said.

Both Nanya Technology and Inotera, another FPG subsidiary, yesterday reported sales declines for September, the fourth month in a row the two have done so.

Nanya Technology had September sales of NT$1.864 billion, a decline of 11.7 percent from August. The firm has withdrawn from the standard dynamic random access memory (DRAM) market and has suffered declining sales, which officially fell below the NT$2 billion level last month. The NT$1.864 billion was also the lowest since December 2008.

For the third quarter, the firm posted sales of NT$6.55 billion, a decline of 35 percent from the NT$10.1 billion for the April-June period.

Nanya Technology attributed the September sales decline to a shipment adjustment in the wake of cutthroat price competition in the market. Yet it said for October, prices are expected to stay at the same level as September due to stronger demand during China's weeklong Oct. 1 national holiday break.

Memory chips for non-PC applications increased from 45 percent of the total in the past to over 50 percent in September, while sales of PC-use memory chips were on the decline due to weak demands in the market, it said.

Inotera, meanwhile, reported September sales of NT$2.8 billion, a decline of 2 percent from August yet also the fourth consecutive monthly decline. For the third quarter the firm posted sales of NT$8.7 billion, a decline of 9 percent from NT$9.56 billion for the second.

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