2013/01/23

Nanya Technology Reports Fourth Quarter 2012 and Year 2012 Results

Taoyuan, Taiwan, January 23rd, 2012 – Nanya Technology Corporation, (TWSE: 2408), today announced its results of the fourth quarter, ended December 31st, 2012. Nanya’s quarterly sales revenue is NTD 7,026 million, an increase of 7 percent compared to the third quarter in year 2012, due primarily to a 30.6 percent increase in sales volume, and a 19.8 percent decrease in average selling prices (ASP) compared to the previous quarter and New Taiwan Dollar appreciated 2.3 percent. Operating loss of the quarter was NTD 7,364 million. Cost of Goods Sold for the quarter included a charge of NT$ 1,197 million for the write-down of inventories. The company posted its net loss of NTD 8,882 million or negative NTD 0.45 per share (the earnings per share calculations are based on weighted average outstanding shares of 16,120 million). The 2012 annual sales revenue is NT$32,478 million, 11.6 percent decrease compared to last year’s. In year 2012, the sales volume increase 27.6 percent year-over-year, and average selling price decrease 31.1 percent, and New Taiwan Dollar depreciated 0.5 percent. Operating loss in year 2012 is NTD 30,159 million and the net loss was posted of NTD 36,043 million. All numbers are unaudited.

Nanya Transforms to Specialty DRAM Manufacturer with Increasing Competitiveness and Lower Cost In response to the changing developments of the industry, Nanya Technology strategically transforms to the operations of consumer and low power value-added DRAM products while ending the joint development program with Micron Technology and obtains the further 20nm process technology licensing from Micron. The company will continue to develop specialty DRAM products with advanced 30nm technology which is expected to last for another 3 years. By ending the joint development program with Micron, while Nanya will substantially reduce its R&D cost, by controlling its R&D expense at around NTD 0.5 Billion on a quarterly basis, to greatly improve cost structure.

Furthermore, to alleviate financial impacted by PC commodity market volatility, Nanya will retain less than 5 percent of wafer capacity per month from Intera Memories from February to December 2013, but Nanya and Micron collectively will continue to operate Inotera and hold a majority of Inotera's shares. Henceforth, Nanya will continue to emphasize on the research and development, design of consumer and Low Power DRAM products to Increase its competitiveness.

Nanya Technology Fully Support IC Design Houses Capacity Needs with Advanced Technology Process and 55,000 12 inches WSPM

Nanya Technology has long-term partnerships with numbers of niche-market IC design houses through its strong and growing specialty DRAM business closely aligned with its foundry capabilities and technologies. The company plans to convert its wafer-start capacity to 30nm process technology to reach approximately 40,000 WSPM out of its total wafer capacity of 55,000 WSPM in year 2013. Additionally, Nanya will obtain 20nm process technology from Micron via transferring and licensing. On top of this, Nanya will fully support to help design houses to meet their needs by providing sufficient wafer capacity.

Emphasize on Cloud Computing Market, Nanya Further Strengthens Operations by Accelerating Technology Migration and Focusing on Development of Speicialty Products

Nanya is accelerating its conversion to 30nm-technology for specialty product and plans to reach 40,000 WSPM in 30nm by the fourth quarter of 2013, particularly for the design and development of value-added specialty products. The 2012 annual bit growth rate reached 27.6 percent while the bit shipment growth rate of the first quarter of 2013 is estimated to be decrease single digits quarter to quarter.

Strong growth momentum of cloud computing and continuous demands for smartphone, tablet PC and smart TV (HD 4Kx2K) all trigger the demand for DRAM. Nanya Technology is strengthening the partnerships with core-chip makers by providing professional customized design and services with a series of products ranging from DDR~DDR3 128Mb~4Gb. Nanya is ready to benefit from the strong demand coming from the cloud computing industry to achieve success in DRAM business.

4Q 2012 Income Statement

Note : Q4’12 Cost of Goods Sold includes a charge of NT$ 1,197 million for the write-down of inventories.

Note : Q3’12 Cost of Goods Sold includes a charge of NT$ 3,406 million for the write-down of inventories.

2012 Income Statement

Note : The amount of inventory write-down of Y2012 is NT 2.17 billion

Note : The amount of inventory write-down of Y2011 is NT 3 billion.