DRAM chipmaker Nanya Technology plans to invest a total of NT$40 billion (US$1.3 billion) to transition its production to a 20nm process node, according to company president Charles Kau. The investment will be made over a period of 2-3 years, said Kau.

Nanya will initially have half of its overall production capacity enter 20nm production, Kau noted. Nanya currently runs a 12-inch wafer fab capable of producing 60,000 units a month.

Nanya also plans to raise additional capital of NT$10-20 billion in the second half of 2015, Kau indicated. The company has not determined how it will draw the new funds, but is looking for new investors, Kau said.

A previous report cited industry sources as saying that Toshiba was in talks with Nanya to form a strategic partnership. But Nanya has declined to comment on the rumors.

Nanya also declined to comment on recent speculation saying its tie-up talks with Toshiba have collapsed, due mainly to disagreements about the amount of investment Nanya expected from Toshiba.