[News] Memory Utilization Rate Near Full Capacity, Surpassing Mature Nodes Foundries

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As memory prices and demand rise, memory manufacturers Nanya Technology and Winbond have resumed normal production, no longer reducing output as they did last year. TrendForce and industry sources cited in a report from Liberty Times Net also indicate that memory shipments will continue to recover in the third quarter.

Reportedly, memory manufacturers’ utilization rates have reached 90% to 100%, surpassing the 60% to 70% utilization rates of mature process foundries.

Last year, in response to market conditions, Winbond adjusted its inventory and reduced production at its Taichung plant by up to 30-40%. This year, as market demand has rebounded, production has resumed, with capacity now at full utilization, producing 58,000 wafers per month.

Moreover, Winbond’s Kaohsiung plant has introduced new capacity equipment, increasing monthly production from 10,000 to 14,000 wafers and upgrading processes from 25nm to 20nm.

Winbond’s General Manager, Pei-Ming Chen, stated that the company is currently operating at full capacity utilization, with shipments exceeding production. This indicates a continuous decrease in inventory levels and a rise in customer demand. He then expected the second half of the year to be better than the first, with DDR3 and DDR4 contract prices increasing each quarter, aiding the company’s core profitability.

Nanya Technology Increases Production, Aims to Turn Losses into Profits in Q3

Nanya Technology adjusted production levels dynamically last year, reducing output by up to 20%. However, production has gradually increased this year.

Nanya Technology anticipates improving DRAM market conditions and prices quarter by quarter, with the industry overall trending positively and a chance to return to profitability in the third quarter.

Nanya Technology reported consolidated revenue of NTD 3.363 billion (roughly USD 103 million) for June, up 0.35% month-on-month and 36.83% year-on-year, marking the second-highest level this year. Accumulated consolidated revenue for the first half of the year was NTD 19.424 billion (roughly USD 596 million), an increase of 44.4% year-on-year.

On the other hand, chairperson Doris Hsu of GlobalWafers, a major silicon wafer manufacturer, recently stated that currently, there is stronger demand for high-performance computing (HPC) and memory applications, while demand in automotive and industrial applications is weak. Demand for mobile applications is increasing, and customers are continuing to digest inventory, leading to a more conservative approach towards procurement.

TrendForce reports that a recovery in demand for general servers—coupled with an increased production share of HBM by DRAM suppliers—has led suppliers to maintain their stance on hiking prices. As a result, the ASP of DRAM in the third quarter is expected to continue rising, with an anticipated increase of 8–13%. Among this, DDR3 & DDR4 prices expected to increase by 3–8% in Q3.

Read more

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(Photo credit: Nanya Technology)