Taiwan's Nanya Technology to invest $1.85 bln to boost memory chip output

Nanya Technology

01/08/2017 09:14

TAIPEI, Aug 1 (Reuters) - Taiwan chipmaker Nanya Technology 
Corp  2408.TW  said on Tuesday it will invest $1.85 billion to 
boost its share in the memory chip market, joining a flurry of 
rivals boosting capital expenditure to cash in strong global 
demand for semiconductors. 
    Samsung Electronics Co  005930.KS  said last month that the 
memory chip boom that propelled it to record profit in the 
second quarter is likely to continue into the third, and 
announced it was investing at least $18.6 billion to extend its 
lead in the market.  urn:newsml:reuters.com:*:nL3N1JV1CJ  urn:newsml:reuters.com:*:nL3N1KI00K 
    China, led by state-owned group Tsinghua Unigroup, is also 
making a big investment in memory chips to reduce its reliance 
on foreign chipmakers. 
    As new applications such as cloud computing, autonomous 
driving and virtual reality emerge, chipmakers have recently 
benefited from a so-called semiconductor super-cycle. 
    Nanya Technology said it would invest T$55.7 billion ($1.85 
billion) in building new headquarters, a fabrication plant and 
purchasing equipment, adding the plan would help its move to 
20-nanometer process technology. 
    The investment will enable the memory chip supplier to 
increase its total production capacity to 68,000 wafers per 
month and boost its annual revenue by T$20 billion from as early 
as 2018.   
    The DRAM products to be rolled out from its 20-nm process 
line will specifically target demand in connected devices used 
in vehicles, homes, and offices, the company said.  
    Nanya, a laggard in DRAM market dominated by Samsung and 
South Korea's SK Hynix  000660.KS , also plans to start research 
and development on 10-nm technology, President Pei-Ing Lee told 
reporters at the company's opening ceremony at its new 
headquarters in New Taipei City. 
($1 = 30.1680 Taiwan dollars) 
 
 (Reporting by Jess Macy Yu; Editing by Miyoung Kim and Kim 
Coghill) 
 ((JessicaMacy.Yu@thomsonreuters.com; +886 2 2500-4882;)) 
 
Keywords: NANYA TECHNOLOGY INVESTMENT/