Wednesday, January 8, 2014
Micron Technology and Formosa Plastics Group (the parent company of Inotera Memories) have recently renewed pricing for the purchase of DRAM chips from Inotera with the new prices taking effect on January 1, 2014, according to industry sources. The revised pricing model will allow Micron to share more profits when Inotera makes higher earnings.
According to the old pricing model, Micron's purchase price for Inotera's output was based on average market prices for DRAM memory in the most recent three months. The revised model has taken into account the profits generated by Inotera, as a result of the chip price volatility, in the most recent one or three months, the sources said.
Inotera indicated the new pricing model will not harm its profitability. Inotera added that in order to make its fiancial situation more transparent, the company will provide financial guidance in the future.
Buoyed by rising DRAM prices and an improvement in product mix, Inotera is set to return to profitability in 2013 with earnings likely to reach as high as NT$20 billion (US$665 million), market observers have estimated. Inotera's profits are forecast to climb further in 2014 to between NT$30 billion and NT$50 billion, thanks to more stable chip prices and the company's more output for non-PC applications, the observers said.
Micron's diversified product portfolios enable Inotera to better leverage its production capacity - 130,000 12-inch wafer monthly - for a more favorable product mix and selling prices, the observers noted.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
