Asia Express - East Asian ICT
Nanya to Raise Capex for 2017 to Over USD 1 Billion
March 10, 2017
Nanya recently announced that it will increase its capex for 2017 by 50% to USD1.1 billion, up from USD712.5 million for 2016, reported Economic Daily News on March 10. This is mainly attributed to the increasing customer demand for 12" chips and the increased capex is to help the company expand the chip production capacity using 20nm process technology from 30,000 units in the end of 2017 to 38.000 units in the first half of 2018. The advancement in chip technology is expected to significantly reduce the manufacturing cost of DRAM and the continued supply shortage is expected to boost DRAM ASP by 10%-15% sequentially in the first quarter of 2017, according to the same source.