As memory prices and volumes increase, manufacturers Nanya and Winbond have ceased the production cuts they implemented last year, with production now back to normal levels. Market research agencies and supply chain analysts indicate that memory shipments are expected to continue recovering in Q3 2024. Currently, memory factories are operating at a capacity utilization rate of 90% to full capacity, which is significantly higher than the 60% to 70% capacity utilization rate of wafer foundries with mature processes. Last year, Nanya adjusted its production volume reducing it by up to 20%. This year, production has gradually increased, reaching 70% to over 80% in the second quarter, and has now resumed normal levels.

Nanya anticipates that DRAM market conditions and prices will improve quarter by quarter, with the overall industry trending positively, potentially turning losses into profits in the third quarter. Nanya announced yesterday that its consolidated revenue for June was 3.363 billion yuan, marking a monthly increase of 0.35% and an annual increase of 36.83%, setting a high for the year. The cumulative consolidated revenue for the first half of the year was 19.424 billion yuan, a 44.4% increase compared to the same period last year. Nanya will hold a press conference on July 10 to announce its second-quarter financial results and operating outlook.Shadowing Nanya, Winbond reduced production last year at its Taichung plant by 30 to 40% in response to market conditions and inventory adjustments. Since the beginning of 2024, as market demand has recovered, production has ramped up. The current production capacity has reached full capacity, with a monthly output of 58,000 units. Additionally, the Kaohsiung plant has introduced new production equipment, increasing its monthly production capacity from 10,000 to 14,000 units and upgrading the manufacturing process from 25 nm to 20 nm.

Winbond General Manager Chen Peiming stated that the company's capacity utilization rate is now at full capacity, with shipment quantities exceeding production. This indicates that inventory levels are decreasing and customer demand is rising. He expects the second half of the year to be better than the first, and is optimistic about rising DDR3 and DDR4 contract prices, which will positively impact the company's profits.