Inotera Memories will shift a majority of its total wafer starts to 30nm process technology by April 2013, according to the Taiwan-based DRAM manufacturer, which expects to significantly improve its cost competitiveness in the second quarter of the year.

Inotera is now capable of producing more than 60,000 12-inch wafer starts per month using the newer 30nm node, and the monthly output will climb further to approximately 100,000 units in April, the company indicated.

In addition, Inotera noted that the company is expected to be the largest provider of 30nm DRAM products to Micron Technology. Under a new supply agreement, Micron is set to soon purchase all of Inotera's manufacturing output, and the purchase price will be market-based as opposed to the former margin sharing arrangement.

Following the transition to a newer 30nm process, Inotera's manufacturing costs per DRAM die will be cut to as low as US$0.80, according to market sources. Including packaging and testing costs, Inotera's total manufacturing costs per DRAM die will arrive at about US$1.10, the sources estimated.

DRAM spot prices recently climbed to US$1.20, the sources observed, adding that the price rebound has already allowed several suppliers to start making profits.

Inotera has reported net losses of NT$3.72 billion (US$128 million) for the fourth quarter of 2012, which marked the 12th straight quarterly loss for the company.