Nanya says it has no plans to invest in Infineon DRAM
- 21 November, 2005 11:23
Nanya Technology, a Taiwanese memory chip maker that shares a joint venture factory with Infineon Technologies, said Friday it has no interest in buying the DRAM (dynamic RAM) operations of the German chip giant, nor is it considering an investment in the company's proposed spin off.
"We've never discussed the possibility of buying Infineon's DRAM business with them, it's too big," said Pei-Lin Pai, a vice president at Nanya Technology.
He said the company also does not plan to invest in Infineon's DRAM operations if the German chip maker ends up splitting the unit into a separate company.
As a size comparison, Nanya Technology posted revenue of NT$40.5 billion (AUD$1.64 billion as of Oct. 31, the end of the reporting period) for the first ten months of this year, just a bit over what Infineon's DRAM operations make in a single financial quarter. Infineon said that from July through September, its DRAM operations took in revenue of Euro 768 million (AUD$1.23 billion as of Sept. 30, the end of its reporting period), down 5 percent from Euro 807 million during the same time last year.
On Thursday, Infineon Technologies announced it planned to spin off its memory business and might take the unit public. Speculation over such a move has abounded for years as Infineon has struggled to make money in the boom-and-bust cycle that characterizes the DRAM business.
Many analysts reckoned Nanya Technology might be a buyer for Infineon's DRAM business because of its cash rich parent company, Nanya Plastics, and a joint venture company the two share, Inotera Memories.
But Nanya Technology officials say they have no plans to make any investment in Infineon's DRAM operations, and they also do not expect Infineon's new spin-off plans to impact Inotera.
Infineon has not been able to grow its DRAM business as fast as rivals such as Samsung Electronics Co., the world's largest memory chip maker.
Infineon reported that revenue in its fiscal fourth quarter, which ended Sept. 30, fell to Euro 1.73 billion, down 13 percent from Euro 1.99 billion during the same time a year earlier. It lost Euro 100 million during the July through September period, compared to a net profit Euro 44 million during its fourth quarter last year, the company said Friday.
Revenue at its memory unit dropped to Euro 2.83 billion for its fiscal year 2005, down from Euro 2.93 billion the previous year, Infineon said.