DRAM maker Nanya Technology on a roll

TAIPEI: Sources say that like many other companies in the DRAM industry, Nanya Technology is also running full steam ahead. Nanya's 8-inch fab is reportedly running at full capacity, According to sources at Nanya, steady demand through contract orders is the reason for the sustained upswing. Bit shipment growth is estimated at 20-30 p.c sequentially for the third quarter.

News from Nanya is that there was a large group of contract orders for its 8-inch fab recently. According to figures from the company, OEM production now accounts for more than 50 p.c of the wafer starts (ranging from between 27,000-28,000) produced a month at the fab.

Industry sources speculate that Nanya has gained much from Semiconductor Manufacturing International's (SMIC's) withdrawal from the DRAM foundry business. Sources also opine that the decision by ProMOS Technologies to give up its manufacturing site at the Hsinchu Science Park (HSP) has allowed Nanya to bring in new orders. There was no comment from Nanya Technologies about these speculations.

Regarding what the rest of 2010 looks like forthem, the company said that production ramp-up of its 50nm process combined with the growth in its foundry business, will help restore profitability in the second half of 2010. Earlier this year, Nanya was in the red due to production losses incurred from its process transition.

Sources at Nanya revealed that the DRAM chipmaker is set to convert all of its 12-inch chip production to 50nm technology in August. Trial runs on 42nm began in June, with volume production slated for the fourth quarter.

According to a filing on the Taiwan Stock Exchange, Nanya is in the process of issuing six billion of its shares. Earlier the company’s board of directors had approved the selling of two billion shares at NT$10 (US$0.31) par value per share.