DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said it plans to invest about NT$300 billion (US$10.66 billion) to build a 12-inch fab to produce 10-nanometer chips, as demand for memory chips for 5G, artificial intelligence (AI) and consumer electronics applications soars.
It is the chipmaker’s first major capacity expansion in four years. Nanya Technology last invested about NT$200 billion for its process technology migration from 30 nanometers to 20 nanometers and 10 nanometers.
“We have little room [for further expansion] at existing factories. Nanya Technology needs to continue investing on developing new process technologies and new products, and expand capacity to ensure sustainable growth,” Nanya Technology president Lee Pei-ing (李培瑛) told reporters on the sidelines of a news conference in New Taipei City.
Photo: Chen Hsin-yu, Taipei Times
On the demand side, the DRAM market is expected to grow at an annual pace of 15 to 25 percent, fueled by a variety of applications from 5G, AI, automotive, industrial and Internet of Things devices, Lee said.
The world’s major DRAM suppliers are expanding capacity to match an anticipated growth in demand, he added.
Nanya Technology expects its output for this year to be flat or to increase slightly from last year, after an annual expansion of 35 percent last year.
The new 12-inch fab, to be built in New Taipei City’s Taishan District (泰山), would add 45,000 12-inch wafers to the firm’s monthly capacity of 70,000 equivalent-
wafers, helping it to capture new growth opportunities, Lee said.
The chipmaker expects the fab to start commercial shipments in 2024, with a monthly capacity of 15,000 wafers in the first phase.
With the introduction of more advanced technologies, the new fab would help Nanya Technology broaden its product portfolio and expand its customer base from about 800, Lee said.
The company plans to deploy 10-nanometer process technology, developed entirely by the chipmaker, he said.
Nanya Technology had joined forces with major DRAM chipmakers, including Micron Technology Inc, to develop new-generation process technologies.
The company aims to lift its server DRAM share to about 10 percent of its total revenue, from 5 percent, Lee said.
The chipmaker generates up to 70 percent of its revenue from supplying DRAM used in consumer electronics, such as set-top boxes and game consoles.
Nanya Technology said it has no fundraising plans for the near term, as it had accumulated NT$686.7 billion as of the end of last quarter.
The firm’s capacity expansion plan comes amid DRAM supply constraints. Market researcher TrendForce Corp (集邦科技) yesterday raised its DRAM price forecast for the current quarter due to strong demand for PCs and servers amid the COVID-19 pandemic.
The average selling price of DRAM is expected to rise 18 to 23 percent, up from a range of 13 to 18 percent estimated previously, TrendForce said.
INVESTIGATION: The case is the latest instance of a DPP figure being implicated in an espionage network accused of allegedly leaking information to Chinese intelligence Democratic Progressive Party (DPP) member Ho Jen-chieh (何仁傑) was detained and held incommunicado yesterday on suspicion of spying for China during his tenure as assistant to then-minister of foreign affairs Joseph Wu (吳釗燮). The Taipei District Prosecutors’ Office said Ho was implicated during its investigation into alleged spying activities by former Presidential Office consultant Wu Shang-yu (吳尚雨). Prosecutors said there is reason to believe Ho breached the National Security Act (國家安全法) by leaking classified Ministry of Foreign Affairs information to Chinese intelligence. Following interrogation, prosecutors petitioned the Taipei District Court to detain Ho, citing concerns over potential collusion or tampering of evidence. The
‘FORM OF PROTEST’: The German Institute Taipei said it was ‘shocked’ to see Nazi symbolism used in connection with political aims as it condemned the incident Sung Chien-liang (宋建樑), who led efforts to recall Democratic Progressive Party (DPP) Legislator Lee Kun-cheng (李坤城), was released on bail of NT$80,000 yesterday amid an outcry over a Nazi armband he wore to questioning the night before. Sung arrived at the New Taipei City District Prosecutors’ Office for questioning in a recall petition forgery case on Tuesday night wearing a red armband bearing a swastika, carrying a copy of Adolf Hitler’s Mein Kampf and giving a Nazi salute. Sung left the building at 1:15am without the armband and apparently covering the book with a coat. This is a serious international scandal and Chinese
Seventy percent of middle and elementary schools now conduct English classes entirely in English, the Ministry of Education said, as it encourages schools nationwide to adopt this practice Minister of Education (MOE) Cheng Ying-yao (鄭英耀) is scheduled to present a report on the government’s bilingual education policy to the Legislative Yuan’s Education and Culture Committee today. The report would outline strategies aimed at expanding access to education, reducing regional disparities and improving talent cultivation. Implementation of bilingual education policies has varied across local governments, occasionally drawing public criticism. For example, some schools have required teachers of non-English subjects to pass English proficiency
TRADE: The premier pledged safeguards on ‘Made in Taiwan’ labeling, anti-dumping measures and stricter export controls to strengthen its position in trade talks Products labeled “made in Taiwan” must be genuinely made in Taiwan, Premier Cho Jung-tai (卓榮泰) said yesterday, vowing to enforce strict safeguards against “origin laundering” and initiate anti-dumping investigations to prevent China dumping its products in Taiwan. Cho made the remarks in a discussion session with representatives from industries in Kaohsiung. In response to the US government’s recent announcement of “reciprocal” tariffs on its trading partners, President William Lai (賴清德) and Cho last week began a series of consultations with industry leaders nationwide to gather feedback and address concerns. Taiwanese and US officials held a videoconference on Friday evening to discuss the
RSS