Nanya Technology plans to raise capital and draw strategic partners by the end of 2015, according to company president Pei Ing Lee.

The new fund will mainly go towards converting the DRAM maker's 12-inch production to 20nm process, said Lee.

Kingston Technology and a Taiwan-based DRAM module firm have expressed interests in participating in Nanya's upcoming capital increment plan, industry sources have revealed.

Nanya's previously planned to raise funds in early 2015, but postponed it due to unfavorable market conditions. DRAM prices have been on a decline dragging down the worldwide output in value in 2015.

Nanya will move to speed up its transition to a "die-shrink" 30nm node technology, Lee indicated. Nanya has converted 40% of the company's total wafer start capacity to the process, and the proportion will exceed 50% in the fourth quarter, Lee said.

Lee noted that PC DRAM prices remain under downward pressure in the fourth quarter of 2015, but end-market demand is picking up. Nevertheless, customers are still engaged in inventory adjustments, Lee said.

Nanya and other DRAM makers originally gave a general optimistic outlook about 2015, but actual market conditions have been a disappointment, Lee said.

Nanya has reported consolidated revenues of NT$10.34 billion (US$320 million) for the third quarter of 2015, down 7.3% sequentially. During the quarter, Nanya's bit shipments increased 0.9% while product ASPs fell 11.2%.

Nanya posted 37.3% in gross margin, down 4.7pp on quarter. The company generated net profits of NT$4.72 billion, or NT$1.94 a share, in the third quarter.

By: DocMemory
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