‘WORST PERIOD’:The budget cut would lead to slower growth in shipments this year, a low-single-digit percentage increase rather than an expansion of up to 15%
Date: Apr 17, 2019
By: Lisa Wang / Staff reporter
Memorychip maker Nanya Technology Corp (南亞科技) yesterday slashed its capital spending for this year by 34 percent after sluggish demand drove down its net profit to its weakest level in about two years.
Nanya was following in the footsteps of larger rivals Samsung Electronics Co, SK Hynix and US memory chipmaker Micron Technology Inc in revising down their capacity expansion to combat a supply glut and flagging demand, which has seen memorychip prices slump.
Nanya said it plans to scale back its capital expenditure to NT$7 billion (US$226.73 million) this year, compared with its previous estimate of NT$10.6 billion.
The budget cut would lead to slower growth in shipments this year, a low-single-digit percentage increase rather than an expansion of between 10 and 15 percent year-on-year originally targeted. [FULL STORY]