Mar. 01, 2001

Both Nan Ya Technology Corp. and Mosel Vitelic Inc. are optimistic that their sales prospects should be bright after the upcoming CeBIT show in Hannover, Germany, industry sources said in Taipei.

Nan Ya expects to conduct the mass production of it's DDR (double data rate) memory products in the beginning of March, ideal timing for CeBIT Hannover.

Nan Ya sold 120,000 units in February, reaching about 60% of the target set for that month. But the company has already obtained an order for one million DDRs in March, when CeBIT will be held from 22nd to 28th.

Nan Ya estimates that its DDR production capacity will represent a 5% world market share by the end of 2001, with sales reaching between 30 to 40 million units, Kao Chi-chuan, vice president of the company said.

The price of DDR SDRAM has already climbed to US$12 per unit in the spot market for the time being, but this price is expected to decline considerably as more manufacturers in the line will conduct their mass production in the coming months, possibly below US10, according to Kao. However, he added, Nan Ya maintains an average production cost of US4, 5$ per unit, which will help the firm to ensure a comparably high profit margin.

Meanwhile, Mosel Vitelic estimates its DDR sales will total 30 million units in 2001, representing about 30% of the firm's total output of 100 million units of 128 Mb DRAM products for the year.