Nanya Technology Corp (南亞科技) yesterday posted its ninth consecutive quarter of losses, but the world’s No. 4 DRAM chipmaker said it expects a pickup in demand next quarter for standard DRAM chips used in smartphones and consumer electronics.
The company said it has seen signs of a nascent recovery, after China introduced several economic stimulus packages to encourage consumer spending.
Major industry players, led by Samsung Electronics Co, also continue to reduce inventory, leading to better supply-demand dynamics, it said.
Photo: Grace Hung, Taipei Times
“We are expecting DRAM chips used in consumer electronics to be out of the woods in the second quarter and move toward a positive direction,” Nanya president Lee Pei-ing (李培瑛) told an online news briefing.
“The inventory of [memory chips for] smartphones is returning to a normal level in China. That will pave the way for an improvement in the supply-demand situation in the first half,” Lee said, adding that the firm expects a noticeable improvement in its bottom line in the final quarter of this year.
The company added that it is racing to produce more DDR5 DRAM chips to inject new growth. DDR5 chips, used mainly in computers and servers, enjoy a significant price premium compared with DDR4 chips.
“Nanya Technology will mainly rely on the new products — DDR5, DDR4 made on new, advanced technology, low-power DDR4 and low-power DDR5 memory chips — for bottom-line improvement, and there is a chance to see a marked improvement in the fourth quarter,” Lee said.
The company aims to boost the contribution of DDR5 chips to about 20 percent of overall DRAM production in the first half of this year.
For the full year, DDR5 chips are to account for 30 percent of its total production, Lee said.
The company has also partnered with Piecemakers Technology Inc (補丁科技) to develop high-bandwidth memory chips used in artificial intelligence-powered edge devices, Lee said, adding that it expects to ship its first high-bandwidth DRAM chips by the end of next year.
Nanya Technology last month announced that it would acquire up to 38 percent of Piecemakers’ shares for a maximum of NT$660 million (US$19.93 million), and spend NT$20 billion on new facilities and equipment this year, up from NT$16 billion last year.
The company’s net losses widened from NT$1.49 billion the previous quarter to NT$1.57 billion in the December quarter, amid sluggish demand and lower average selling prices.
On an annual basis, net losses improved from NT$2.48 billion.
Shipments last quarter sank 7 to 9 percent sequentially, or 31 to 33 percent annually, while selling prices dipped about 11 to 13 percent quarterly, but rose 11 to 13 percent annually, the company said.
As a whole, losses last year narrowed from NT$7.44 billion in 2023 to NT$5.08 billion, the company said.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
‘DECENT RESULTS’: The company said it is confident thanks to an improving world economy and uptakes in new wireless and AI technologies, despite US uncertainty Pegatron Corp (和碩) yesterday said it plans to build a new server manufacturing factory in the US this year to address US President Donald Trump’s new tariff policy. That would be the second server production base for Pegatron in addition to the existing facilities in Taoyuan, the iPhone assembler said. Servers are one of the new businesses Pegatron has explored in recent years to develop a more balanced product lineup. “We aim to provide our services from a location in the vicinity of our customers,” Pegatron president and chief executive officer Gary Cheng (鄭光治) told an online earnings conference yesterday. “We
LEAK SOURCE? There would be concern over the possibility of tech leaks if TSMC were to form a joint venture to operate Intel’s factories, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday stayed mum after a report said that the chipmaker has pitched chip designers Nvidia Corp, Advanced Micro Devices Inc and Broadcom Inc about taking a stake in a joint venture to operate Intel Corp’s factories. Industry sources told the Central News Agency (CNA) that the possibility of TSMC proposing to operate Intel’s wafer fabs is low, as the Taiwanese chipmaker has always focused on its core business. There is also concern over possible technology leaks if TSMC were to form a joint venture to operate Intel’s factories, Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺)