Report: Taiwan’s DRAM makers throttling up capex in 2007

October 16, 2006 – Taiwan’s top four DRAM chipmakers are expected to spend roughly $6.0 billion on 300mm wafer tools next year in order to keep up with demand for leading-edge processes and newer DDR2 chips, according to the Taiwan Economic News.

Inotera Memories Inc., the Nanya-Qimonda JV, expects to nearly triple its capex to about $1.8 billion, as it hikes output by 15% sequentially in 4Q06 thanks to added 90nm capacity.

ProMos’ capex budget is seen rising $43% to $1.3 billion, as the company boosts total output by 10%-15% in 4Q06 and hikes utilization rates at its second 300mm fab. Fab 2 will begin pilot production in December and ramp to 60,000 wafers/month capacity over the next 12 months.

PowerChip, expected to spend $900-$1.2 billion, is likewise planning a 10% jump in output during 4Q at its Fab 12M site, to about 11,000 wafers/month, and will double that output again in 1H07. It’s also speeding up construction of Fab 12C, with projected maximum output of 70,000 wafers/month.

Nanya has laid out $1.8 billion for its 2007 capex budget, and plans to raise about a third of those funds in 2H06 through issuing corporate bonds and convertible bonds.


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