Memory chip giant Nanya seems to be on the road to recover. Memory companies have had a tough couple of years. The dip in prices started when the companies were preparing for the launch of Windows Vista a few years ago. Vista requires a lot of memory and therefore memory companies went into full gear in producing the chips. However, the low adoption rate of Vista meant many PC makers and memory retailers had bloated inventories which forced the price down. Nanya has just come out of its fifth successive quarter of losses. The Taipei Times however reports this company may be on the way back. Accoring to the Taipei Times:
Nanya Technology Corp (南亞科技), the nation's second-largest maker of memory chips used in computers, said yesterday quarterly losses had shrunk significantly over a price rebound, adding it would trim capital spending this year to help accelerate recovery from the industry’s severe, glut-driven slump.
Taoyuan-based Nanya posted its fifth consecutive quarterly losses at NT$7.3 billion (US$240 million) for the quarter ending on June 30, contracting 17 percent from NT$8.78 billion in the first quarter, a company statement said. The chipmaker posted losses of NT$2.83 billion a year ago.
“The improvement is mostly because of better chip prices,” said Pai Pei-ling (白培霖), a vice president at Nanya.
Contract prices for dynamic random access memory (DRAM) chips rose at a 20 percent quarterly pace in the April to last month period, Pai said.
Looking forward, Pai said net losses should narrow next quarter on the back of stabilizing DRAM prices, but the recovery may not be strong enough to bring Nanya back to profit any time soon.
It has indeed been a tough few years for the memory companies. Hopefully they will be able to recover quickly.
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