Nanya Technology and Inotera Memories have posted their third straight quarterly losses for the third quarter of 2010, according to data released by the DRAM makers.
Nanya generated revenues of NT$15.92 billion (US$515 million) in the third quarter, down 5% on quarter. Its DRAM ASP slid 15% sequentially while bit shipments increased by 14%. Nanya's operating losses widened to NT$1.39 billion in the third quarter from losses of NT$516 million in the second, while net losses swelled to NT$2.27 billion from losses of NT$1.09 billion in the prior quarter.
However, Nanya said it has moved a copper-based 42nm process node, which was jointly developed with Micron Technology, to volume production in October. Compared with 50nm, 42nm process technology will further bring down another 30% die cost and yield 50% more chips from a single wafer, Nanya claimed. Nanya's capacity at its 12-inch fab (Fab 3A) will reach 50,000 wafer starts a month by the end of 2010, and grow further to 60,000 at the end of first-quarter 2011, according to the company. Currently, its monthly capacity at Fab 3A has exceeded 48,000 wafer starts.
Nanya has cut its shipment growth projection to 25% for 2010 from 35% that was previously estimated. Its capex target for 2010 remains unchanged at NT$30 billion.
Inotera reported net losses of NT$2.62 billion on revenues of NT$9.96 billion for the third quarter, compared to losses of NT$1.81 billion on sales of NT$11.26 billion in the second quarter. Inotera attributed the 12% decline in third-quarter sales to falling ASPs. Meanwhile, the company's third-quarter bit shipments rose by only 1% compared to the second quarter, missing its estimate of mid-teen percentage growth.
In the third quarter, Inotera saw its overall wafer output decrease by 13% sequentially, the company revealed. However, the company said its monthly output using 50nm stack technology is expected to top 110,000 wafer starts in October, and it is on track to achieve full utilization of 130,000 wafer starts a month by the end of 2010.
Inotera expects fourth-quarter bit shipments to increase 70-80% compared to the third quarter, buoyed by the transition of its entire production capacity to 50nm stack. The company has also launched 2Gb mobile DRAM chips in 50nm technology, with volume production slated to begin in the first quarter of 2011.
Inotera said total capex for 2010 is set to be NT$58 billion.