Taipei, Nov. 22, 2011 (CENS)--The board of directors of Nanya Technology Corp. recently passed a proposal to launch private placements and accept Formosa Plastics Group's (FPG's) offer to buy all of the equities for nearly NT$30 billion (US$1 billion at US$1:NT$30).
Nanya, a FPG-held DRAM chipmaker, is immune from delisting or restructuring thanks to the group's pledge to buy the 10.8 billion shares in the private placement. The funding will float the company's net value to around NT$2.77 per share from less than NT$1.
At a provisional shareholders' conference, Nanya Chairman J. Z. Wu pointed out that although the DRAM industry picked up at one time in 2010 after the 2008 global financial crisis, the company missed the chance of making money because of its unsmooth shift to stack process technology from trench process technology.
Wu noted that the company's process technology shift and defect-free output ratio have become stable, inspiring expectations that the company would further bring down production cost by 27% in the first half next year after scrapping a 25% in the second half of this year on 42-nanometer process. Meanwhile, the company has started pilot production of 4Gb memory chips based on 30nm process, which will enter into volume production sometime next year. Cooperation with Micron Technology on 20nm process project is estimated to help the company cut technological lag with competitors.
Nanya has not asked the government for bailouts as PowerChip Semiconductor Corp. (PSC) and ProMOS Technologies Inc. have done. However, the company has called for the government not to fund its competitors.
(by Ken Liu)