Alexa
  • Directory of Taiwan

Nanya Technology to seek strategic partnership

Nanya Technology to seek strategic partnership

Taipei, March 13 (CNA) Nanya Technology Corp. (???), one of Taiwan's leading dynamic random access memory (DRAM) chip suppliers, has decided to seek a strategic partnership to secure new investment in the development of the company's high-end technology process. Nanya intends to spend NT$40 billion (US$1.27 billion) over the next two to three years to develop the sophisticated 20 nanometer process and plans to raise NT$10 billion to NT$20 billion of that through a rights issue and strategic partnership later this year. The Commercial Times cited unnamed industry sources as saying that U.S.-based memory chip vendor Kingston Corp. is likely to participate in the Nanya rights issue and become a strategic investor in the DRAM maker. The two companies have done business for years, and they are now discussing the possibility of having Kingston buy a stake in Nanya, the sources said. Kingston has the financial means to invest in Nanya's rights issue, the sources said, but Nanya declined to comment on the report, saying it does not respond to market speculation. Through its NT$40 billion investment plan, Nanya hopes to churn out memory chips made with the 20nm process on a trial basis at the end of 2016 and launch commercial production in 2017. That would make Nanya the first Taiwanese DRAM supplier to have advanced 20nm process production capacity, analysts have said. Nanya is one of the DRAM manufacturing arms of conglomerate Formosa Plastics Group (????). The chip maker also has a share of Inotera Memories Inc.(???), a joint venture co-founded with U.S.-based Micron Technology Inc. Meanwhile, Nanya has proposed issuing a NT$2 cash dividend per share for 2014, when its net profit rose 247 percent from the previous year to NT$28.24 billion, with earnings per share (EPS) of NT$11.77. Nanya Senior Vice President Lee Pei-ing (???) said global DRAM demand is expected to pick up in the second quarter, after slow season effects seen in the first quarter fade, which could lead to a supply shortage. The shortage could become even more serious in the third quarter, he said. (By Jackson Chang and Frances Huang)


Updated : 2021-09-29 09:50 GMT+08:00