Nanya Technology Corp (南亞科技), the nation’s second-largest computer memory chipmaker, yesterday reported smaller quarterly losses mainly on a significant contraction in non-operating losses, but said chip prices could rebound this quarter as a glut would ease with an industry-wide output reduction.
The Taoyuan-based chipmaker is working on a proposal with US technological partner Micron Technology Inc to ask for financial support from the government. The Nanya-Micron camp has requested support similar to that offered by the government to state-controlled Taiwan Memory Co (台灣記憶體公司).
Inotera Memories Inc (華亞科技), a joint venture between Nanya and Micron, intends to raise funds by issuing 2 billion common shares and hopes the government would subscribe to the share sale, company president Charles Kau (高啟全) told reporters yesterday.
In the first quarter, Nanya’s losses improved slightly to NT$10.51 billion (US$316 million), compared with losses of NT$11.89 billion in the fourth quarter, after booking NT$2.17 billion in non-operating losses, about half the amount booked in the first quarter, the company said in a statement. Nanya lost NT$8.78 billion in the first quarter of last year.
Operating losses, however, deepened to NT$8.35 billion last quarter from NT$6.04 billion in the fourth quarter of last year and NT$6.53 billion a year ago, as chip prices plunged 50 percent year-on-year, it said in its financial statement.
Looking ahead, Nanya vice president Pai Pei-lin (白培霖) said: “We are becoming more optimistic as demand is better than the original expectation of our customers. And the production reduction effect is magnifying.”
Demand has exceeded supply in the first three months of the year and the supply constraint could carry into the next two quarters, Pai told investors.
“The average selling price will be better this quarter than last quarter,” Pai said.
Nanya increased prices by 9 percent in the second half of last month and aimed to raise them by between 10 percent and 15 percent for the first half of this month on lower supply and rising demand from China.
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