2012/07/18

Nanya Technology Reports Second Quarter 2012 Results

Taoyuan, Taiwan, July 18th, 2012 – Nanya Technology Corporation, (TAIEX: 2408), today announced its results of the second quarter, ended on June 30th, 2012. Nanya’s quarterly sales revenue is NTD 10,102 million, an increase of 15 percent compared to the first quarter in year 2012, due primarily to a 6 percent increase in sales volume and a 10 percent increase in average selling prices compared to the first quarter. Operating loss in the quarter was NTD 5,280 million. The company posted its net loss of NTD 6,692 million in the second quarter or negative NTD 0.45 per diluted share (the earnings per share calculations are based on weighted average outstanding shares of 14,865 million). All numbers are unaudited.

Nanya Demonstrated Its 1st Functional TSV 8Gb DDR3 SDRAM

Nanya Technology Corporation successfully demonstrated its first functional TSV (Through Silicon Via) 8Gbit DDR3 SDRAM QDP (Quad-Die Package) featuring 4-high stack chip. This prototype product was developed by Nanya’s advanced via-middle process technology. To enhance its competitiveness in consumer market, Nanya Technology began developing TSV 3D-IC technology in 2010, and has joint development project with ITRI (Industrial Technology Research Institute) which is funded by Taiwan's Ministry of Economic Affairs (MOEA). By significantly shortening the chip-to-chip conduction path from a few milli-meters (as normally seen in a wired bond package) to around 50 micro-meters, the performance of TSV stack chips is extraordinary when compared with the traditional wire-bonding counterpart.

Nanya’s TSV chips of the first batch readily reach the speed of DDR3-1600 and above with great margin. The preliminary integration yield in the pre-production TSV technology is also above the most aggressive forecast. Foreseeing the potential of TSV 3D-IC technology in mobile and high-speed applications; Nanya commits to optimize its momentum for the development of TSV-based DRAM products to enter volume production by year 2014.

Time for DDR4, Nanya Sampling its DDR4 SDRAM

As JEDEC (Joint Electron Devices Engineering Council) is finalizing the DDR4 SDRAM specifications, Nanya has worked closely with its major partners in the early validation projects by sampling Nanya’s 30nm 4Gb DDR4 for validation in the second quarter of 2012, and received testing feedback lately. Thereupon, the high-end DDR4 RDIMM/LRDIMM for server applications will be sampled for validation in the third quarter, and is expected to enter into small volume production in 2013.

Nanya’s DDR4 SDRAM, co-developed with Micron Technology, is running at 1.2 volts power supply, as versus to 1.5 volts for DDR3, and achieving high-speed data transfer rates ranging from 1866MHz to 3200MHz. The DDR4 SDRAM is designed for more power-efficient and faster than the current DDR3 memory to meet current market’s need. Furthermore, through Nanya's TSV technology development, the density of DDR4 LRDIMM will go up to 64GB and 128GB. Aiming at high-end server market, Nanya will provide a high value-added solution with higher performance while at low power consumption for its customers to meet the booming demand.

Outlook and Financial Plan

After Micron announced acquiring Elpida, the consolidation could help restore the rational behavior, leading to a healthier DRAM industry. The business collaboration, including JD & JV, between Nanya and Micron will remain unchanged as well. Both companies have equal relationships and share the joint development results, including patents. Nanya & Micron have a 300mm joint venture, Inotera Memories, and share Inotera’s capacity but sell products through their own brands. Nanya, with full efforts on speeding in technology development and raising the operating efficiency, constantly launches diversified value-added products, provides complete product lines and aggressively develops high extra value 42nm and 30nm products for Server applications and digital consumer market.

The bit shipment growth rate in the first half was 39 percent, while the bit growth in the third quarter of 2012 is estimated to be mid 20 percent. The Annual General Shareholders’ Meeting on June 12th, 2012 approved a proposal to issue up to 3.8 billion new common shares. The share issuance will depend on the capital market situation and the company’s funding requirements.

2Q 2012 Income Statement

Note : Q2’12: the earnings per share calculation is based on the weighted average outstanding shares of 14,865 million. Q1’12: earnings per share calculation based on the weighted average outstanding shares of 14,865 million. Q2’11: earnings per share calculation based on the weighted average outstanding shares of 4,027 million.