02.26.2001
Nan Ya pushing DDR DRAM through bundling deal with VIA

• Nan Ya Technology (2408 'Nan Ya Ke') and VIA Technologies (2388 'Wei Sheng') have teamed up to bundle double data rate (DDR) DRAM module with DDR chipset at US$99. The move is an attempt to promote DDR applications.

• Nan Ya started DDR SDRAM volume production with 10k units in January. DDR DRAM shares the bulk of the production process with SDR DRAM; Nan Ya says it has maintained 70% yield on production, yielding a die cost of US$5. As 128Mb DDR DRAM is currently priced at US$10 per unit, compared to the spot market price on 128Mb SDRAM of US$4, Nan Ya's bundling deal with VIA may generate at least US$6-8 per unit. The move appears lucrative for the company, considering the loss-making positions of other DRAM players.

• Among Taiwan's DRAM players, Nan Ya is by far the most aggressive on DDR. It remains to be seen whether the VIA deal is actually able to stimulate DDR demand and whether Nan Ya's DDR initiatives will pay off, as DDR is not expected to become mainstream until 4Q01.

LindaLiu@Primasia.com +886-[0]2-2547-8867