With production on 50nm ramping, DRAM maker Nanya Technology expects its bit shipments to start growing substantially in the third quarter of 2010, according to company VP and spokesperson Pei Lin Pai.
Nanya saw bit-shipment growth of only 2% in the second quarter, failing to meet its guidance of 10% growth. Market watchers believe the unexpected weak growth was mainly due to its slower-than-expected technology migration.
Nanya's DRAM bit shipments are expected to grow 20% sequentially in the third quarter, and another 30% in the fourth, Pai said. For 2010, the company's overall bit growth is estimated at 35%.
The 35% growth shows a downward revision compared to the company's earlier prediction of 65%. Inotera Memories, Nanya's DRAM joint venture with Micron Technology, have also cut its shipment growth projection to 50% for 2010 from 70%-80% that was previously estimated.
Both Nanya and Inotera posted their second straight quarterly losses in the second quarter, due to slower shipment growth caused by their process transitions.
Nanya is looking to convert 60-70 of its total 12-inch chip production to 50nm in the third quarter, up from about 50% in the second, Pai said. The proportion will top 70% in the last quarter of 2010, Pai added.
Pai also revealed that the company has begun implementing a capacity expansion at its 12-inch chip plant. Nanya now processes 40,000 wafer starts a month at the 12-inch fab, and is set to scale up monthly output to 50,000 at the end of 2010, according to Pai.
Inotera said plans to convert all of its chip production (two 12-inch fabs with combined capacity of 130,000 wafers a month) to 50nm by the end of 2010 remain unchanged. The company expects bit shipments to increase 15% sequentially in the third quarter, and 100% in the fourth.
Inotera supplies half of its output to Nanya, and the other half to Micron.