Nanya signs a long-term contract with Dell
To be better protected against the shaky spot market for memory chips, the Taiwanese manufacturer of memory chips, Nanya, has signed a five-year contract with Dell. The contract has a total volume of 3 billion dollars and includes the delivery of circuit boards, memory modules and memory components.
This contract also states that other companies in the Formosa Plastic Group, to which Nanya belongs, also deliver parts to Dell, such as FIC, which not only manufactures normal motherboards but also mainboards for notebooks. On the other hand, Nanya hopes with this long-term contract that other large manufacturers will also become aware of her, such as Sony or Hewlett Packard. According to Nanya's Vice President, Charles Kau, Nanya is currently selling 60 percent of its production to the spot market, which in turn only accounts for around 15 percent of the total world market. One hopes that through long-term contracts with strong partners, 70 to 80 percent of their own production can be sold independently of the spot market, continues Charles Kau.