Nanya Technology indicated that it is considering the construction plan for its second 12-inch fab (Fab 3B) with a final decision to be made by mid 2007, according to company president Jih Lien. Having already mentioned that the company has considered plans to tap into the NAND flash segment, Lien has now revealed that once Nanya's DRAM market share exceeds 10%, the company will likely start making flash memory.

Industry sources noted that the production scale of Nanya's Fab 3B should be similar to Fab 3A, its first 12-inch fab which is scheduled the begin pilot runs in the third quarter of 2007. Fab 3A is scheduled to have a maximum monthly capacity of 62,000 wafers. The sources also noted that Fab 3B will start pilot runs on 70nm and volume production on 60nm.

Regarding the development on NAND flash, Nanya is concentrating more on its roadmap this time, saying that the company will only tap into this market after achieving a market share of over 10% in the global DRAM market, according to Lien. He further noted that Nanya is likely to achieve this goal when Fab 3A reaches its maximum capacity.

According to research from iSuppli, Nanya had a market share of 6.6% in the global DRAM market in terms of revenues in 2006. Lien noted that Nanya projects to have its on-year DRAM supply bit growth reach 50-55% in 2007 and exceed 80% in 2008. Capital expenditure (capex) for 2007 and 2008 will be NT$60 billion (US$1.8 billion) and NT$31.5 billion respectively

By: DocMemory
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