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Memory chip market continues to slump, Nanya Technology's revenue drop

SemiMediaEdit
April 11, 2019

The storage chip industry continues to be sluggish. In addition to the severe impact on the performance of companies such as Micron and Samsung, the revenue of Taiwan's DRAM factory Nanya Technology has also experienced a serious decline.

According to a recent announcement by Nanya Technology, revenue in the first quarter was 11.371 billion yuan (NT$), a decrease of 32.94% in the quarter, and the average selling price of products also fell by 20%.

It is estimated that Nanya Technology's first quarter profit will also fall, which is between NT$3.5-3.7 billion, which is the lowest performance in the past eight quarters.

Previously, Nanya Technology said that it expects 5G and AI effects to stimulate storage and server demand. It also revealed that it will introduce servers and a series of low-power products, aiming to diversify product applications to drive growth.

Looking forward to the future, Nanya Technology believes that the market continues to oversupply, and DRAM prices are likely to fall further in the second quarter. However, with the DRAM factory successively announced to cut production and destock, the price decline in the second quarter is expected to gradually shrink, and the market is expected to resume in the third quarter.

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