Though DRAM prices drop sharply and a 16% decrease in revenue, Nanya is annually profited.
After the ninth straight quarterly increase of DRAM prices, memory chip prices finally collapses in October. According to DRAMxChange the sopt prices of DRAM dropped by 10% in October, and it is expected to decline by 20% until 2019. Therefore, the revenue released in October of Naya Technology, world’s fourth largest memory chipmaker, decreases by 16% than last year more than expected. Memory prices’ decline since October is good for customers. But with the large accumulated base of increased prices, memory manufacturers will take it easy this year even set records in revenue and profit.
Samsung is leading the global DRAM market, then SK Hynix and Micron, three of them hold 95% global market shares. When Micron takes full control of Inotera, Nanya Technology becomes the world’s fourth largest memory chip manufacturer, with 2.5% shares which is nothing compared with from 20% to 45% shares of other three companies.
DRAM prices has decreased since October and it trends to last to next year. Memory chip manufacturers accumulates huge revenue and profit in the first three quarters of this year. According to Naya Technology’s Q3 revenue released in the middle of October, the quarter’s net sales are NT$24.375 billion, increased by 83.4% than NT$13.293 of last year. And the gross margin is up to 58.9%, which is higher than 44.2% of last year, with a 3.9% increase than last quarter.