Nanya Technology, taiwan's biggest computer memory-chip maker, said it's reducing inventory because customers are placing more orders and prices of the semiconductors are rising.

"Our policy is not to keep extra inventory," Nanya vice president Charles Kau said in an e-mail, in response to a Chinese-language newspaper report that memory-chip makers are raising inventories to as much as a month's supply to lift prices.

"We are down to two-and-a-half weeks' inventory and we will maintain at this level. At the end of last month, we had three weeks' supply," he said.

The spot price of the most widely used memory chip rose for the third straight day yesterday to US$3.18.

By: DocMemory
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