Nanya Technology expects its DRAM bit shipments to increase 48% in 2018, an upward revision from its previous estimate of 45% growth. The company also revised its bit demand growth outlook for 2018 to 21-23% from 20-25%.

Nanya saw its gross margin hit a record high of 51.8% in the first quarter of 2018. Gross margin will continue its sequential growth through the third quarter of 2018, thanks to the company's rising output and product ASPs.

Nanya disclosed its DRAM ASPs rose 6.1% sequentially in the first quarter, while bit shipments grew 8.4% on quarter. The company posted revenues of about NT$18.8 billion (US$640.3 million) in the first quarter, up 12.1% sequentially and 53.7% compared to the same period in 2017.

Nanya's gross margin for the first quarter was up 2.1pp on quarter, while operating profits climbed 5.4pp to 44.3%. The company generated operating profits of NT$8.32 billion in the first quarter of 2018, up 27.5% sequentially and 115.9% on year.

Nanya's net profits for the first quarter fell 67.1% on quarter to NT$7.23 billion due mainly to foreign exchange transaction losses of NT$1.18 billion. However, net profits for the quarter represented a robust 120.6% increase compared to the same period in 2017. The company reported EPS of NT$2.39 for the first quarter of 2018 compared with NT$7.42 in the prior quarter and NT$1.19 a year earlier.

In addition, Nanya indicated sales of its 20nm products have accounted for over 60% of total revenues. The company continued volume shipments of 20nm 8Gb DDR4 chips already kicked off in the first quarter.

Nanya expects its DRAM ASPs to rise another sequential growth of up to 5% in the second quarter, while bit shipments will likely increase over 15%.

Nanya added its in-house developed 10nm process technology will be ready for small-scale production by 2020.

Market watchers expect Nanya to enjoy another quarter of sequential revenue and margin increases in the second quarter.