Nanya Technology's 8-inch fab is currently running at full capacity, buoyed by growing contract orders, according to the DRAM chipmaker. The company also estimated its bit shipment growth at 20-30% sequentially for the third quarter.
Nanya said its 8-inch fab landed a large batch of contract orders recently. OEM production now accounts for more than 50% of the 27,000-28,000 wafer starts produced a month at the fab, the company indicated.
Industry sources speculate Nanya is among the beneficiaries of Semiconductor Manufacturing International's (SMIC's) withdrawal from the DRAM foundry business. Meanwhile, ProMOS Technologies' decision to give up its manufacturing site at the Hsinchu Science Park (HSP) allowed Nanya to bring in new orders, according to the sources. The sources added that Powerchip Technology also benefited from ProMOS's fab sale.
Nanya did not comment on the speculation.
Nanya said production ramp-up of its 50nm process, as well as growth in its foundry business, will help the company restore profitability in the second half of 2010. The DRAM producer slipped back into the red in the first quarter due to production losses incurred from its process transition.
Nanya is set to convert all of its 12-inch chip production to 50nm technology in August, the company revealed. It has also begun trial runs on 42nm in June, with volume production slated for the fourth quarter.
In other news, shareholders of Nanya on June 24 approved a plan to sell up to two billion new shares at NT$10 (US$0.31) par value per share. The company's board of directors has revised the plan and now plans to issue six million new shares, according to a filing with the Taiwan Stock Exchange (TSE).