DRAM chipmakers Nanya Technology and Inotera Memories have said their capex for 2011 will be slashed from the levels last year, with the spending to be focused on only new process technology development.
Nanya revealed plans to reduce its capital spending 48% from NT$23 billion (US$793 million) in 2010 to NT$12 billion this year. The company is set to complete its 42nm process technology transition in the middle of 2011, and start 3Xnm pilot runs in the second quarter of the year.
Through process upgrades, Nanya's monthly capacity at its 12-inch fab will climb to 60,000 wafer starts by the end of first-half 2011 from 50,000 units currently, the company noted.
Inotera has budgeted NT$17 billion in capex for 2011, down significantly from the NT$55 billion allocated last year. The company is now capable of producing 130,000 12-inch wafers a month using 50nm process technology, and plans to shift a majority of the total wafer starts to a 42nm node by the middle of 2011. Meanwhile, pilot runs of 4Gb chips employing 30nm-class process will also kick off around mid-2011.
In addition, Nanya and Inotera forecast their bit shipment growth for the first quarter of 2011 will be about 30% and 40-50%, respectively. However, they estimated DRAM contract prices for late January would drop by another 6%.
Nanya spokesperson Pei Lin Pai commented that prices are unlikely to rebound substantially in the near term, as replenishment demand for the Lunar New Year holidays is not as strong as anticipated. But prices could begin to recover at the end of the first quarter or the beginning of the second quarter, Pai said.