DRAM firm Nanya Technology has disclosed its capex for 2017 will reach NT$34.3 billion (US$1.1 billion), up over 50% from the about NT$22.3 billion allocated for 2016.

Nanya indicated it is looking to beef up its investment in 20nm process capacity. The company started risk production of chips built using the newer node technology at the end of January.

Nanya expects to output 30,000 wafers per month using 20nm process technology by the end of 2017, with the output to reach 38,000 units in the first half of 2018.

Due to the technology transition, Nanya's DRAM bit shipments for 2017 are set to fall but only by low single-digit percentages on year, the company said. Once the 20nm chip output reaches 38,000 wafers per month, Nanya's bit shipments will be 50% higher than the levels before the transition to the newer node.

Nanya also forecast that the company's DRAM ASPs will rise 10-15% sequentially in the first quarter of 2017 and will continue their rally in the second quarter. Global DRAM supply is expected to remain tight through the end of the year, the company said.

In other news, Nanya has decided to distribute a cash dividend of NT$1.50 for 2016, according to a resolution passed by the company's board of directors. Nanya reported net profits surged 38.4% to NT$23.72 billion for the year with EPS coming to NT$8.67.