Monday, October 20, 2008
Nanya Technology plans to reduce output at its 8-inch fab by turning down orders that generate low profits including expanding its 12-inch fab.
Nanya's 8-inch fab has focused on OEM and niche market products. However, due to weak demand and keen competition in the OEM sector, the company has decided to give less priority to accepting 8-inch orders so as to reduce output at the fab, the sources indicated.
Pei-lin Pai, spokesperson and vice president of global sales and marketing at Nanya, said that orders received for the 8-inch fab are currently sufficient, but acknowledged that capacity is not fully booked.
The company's 12-inch fab has a total capacity of 60,000 wafer starts a month, but is currently rolling out only 30,000 wafers using a 70nm process node based on technology from Qimonda.
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