A recent trend report signals a positive outlook for local memory chip-makers next year, forecasting sustained high demand for NAND Flash products.

The research report, released by Market information advisory firm TrendForce Corp. (W–M‰È‹Z), indicated that dynamic random access memory (DRAM) chips would continue to grow in 2017.

Analysts also predicted good sales prospects for Nanya Technology Corp. (“옱‰È), one of Taiwan's leading dynamic random access memory (DRAM) chip suppliers. Its outlook was also positive for firms farther down the supply chain like memory module maker ADATA Technology (ˆÐ„).

On Wednesday, Nanya announced it would gain a 5.02 percent stake in the U.S. memory chip giant Micron Technology, investing some NT$31.46 billion (US$996 million) at US$17.29 per share.

Through the participation in Micron's private placement, Nanya Technology said that it would gain access to the U.S. firm's high-end DRAM production processes, which was expected to strengthen the Taiwanese memory chip-maker's global competitiveness in the long term.

According to the market report, Nanya is expected to benefit from the rise of DRAM prices in the fourth quarter.

The market adviser predicts Nanya could maintain global competitiveness in the long-term following its participation in Micron's private placement, and having been granted an option to license Micron's 1x and 1y DRAM technologies.

Nanya Technology is the DRAM manufacturing arm of conglomerate Formosa Plastics Group (‘ä‘YWš£).

As for NAND Flash market trends, TrendForce Corp. stated there was a strong demand for smartphones, but said NAND Flash suppliers were aggressively making a transition towards 3D NAND flash, causing NAND flash products to be in short supply in the second half of the year.

However, the market adviser said because 3D NAND flash scaling was slower and was encountering yield rate issues, the market is expected to remain in short supply next year.

By: DocMemory
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