UPDATE 1-Nanya Tech lifts 2010 capex forecast 16 pct

* Sees Q2 bit output growth of about 10 pct vs Q1

* Stock falls nearly 3 pct before forecast
(Adds details)

TAOYUAN, Taiwan, April 13 (BestGrowthStock) – Nanya Technology Corp
(2408.TW: ), Taiwan’s No.2 PC memory chip maker, raised its 2010
capital expenditure forecast by 16 percent, aiming to boost
capacity and upgrade technology to meet growing demand.

Spending would be T$22 billion ($698 million) this year, up
from a previous estimate of T$19 billion, the company said on
Tuesday, a day after larger rival Powerchip Semiconductor Corp
(5346.TWO: ) raised its 2010 capex forecast by 18 percent.
[ID:nTOE63B070]

Major DRAM chipmakers in Asia are benefiting from rising PC
demand amid a tentative global recovery and strong demand from
China.

“Demand is good and it looks like market conditions will be
good this year,” Vice-President Pai Pei-lin told reporters.

He forecast that Nanya’s bit output growth, or growth of
memory storage on chips, would be about 10 percent in the second
quarter versus the previous three months.

Last week, South Korea’s Samsung Electronics Co (005930.KS: ),
the world’s largest semiconductor maker, reported a record
three-month profit, as strong demand pushed up prices for memory
chips. However, some industry watchers said industry-wide
spending on new technology could cause a supply glut.

The forecast came after Taipei’s stock market closed on
Tuesday. Nanya shares ended down 2.93 percent, worse than a 1.08
percent fall on the main TAIEX (.TWII: ).

It also booked an unaudited net loss of T$1.63 billion in
January-March, narrower than a net loss of T$10.5 billion in the
same period a year earlier, the company said.
(US$1=T$31.6)

Money

UPDATE 1-Nanya Tech lifts 2010 capex forecast 16 pct