Nanya Technology Corp. (2408.TW) said Friday it expects to spend between NT$10 billion and NT$20 billion on capital expenditure this year.

Company spokesman Pei Lin Pai said the actual amount may come in higher than NT$12 billion spent in 2008.

Most of the capital expenditure will likely be financed by its parent company Formosa Plastics Group given the current difficult environment for fund raising, he said.

Pai also said that the company has no plans to sell its chip plants to Taiwan Memory Co., a yet-to-be formed memory-chip company in which the government plans to inject funds.

Minister of Economic Affairs Chii-Ming Yiin said Wednesday that Taiwan Memory may look to buy factories from chip makers rather than acquire the companies outright.

"Instead of an industry consolidation, the government is creating a company that would be Nanya's competitor. This is not what we want...we want to sell chips under our own brand," Pai said.

Pai said Nanya may cooperate with Taiwan Memory if the government-funded company chooses Micron as a strategic partner.

Micron's director of global media relations Dan Francisco said Friday the company is in early stages of discussions with Taiwan Memory to understand its plans and determine what role, if any, makes sense for Micron.

Nanya plans to start converting its production technology to "stack" technology licensed by Micron from the second quarter, Pai said.

Nanya expects to start producing a small portion of chips with the new technology beginning in the third quarter.

Nanya and Micron operate two joint ventures in Taiwan - Inotera Memories Inc. (3474.TW) and Meiya Technology Corp.

-By Jessie Ho, Dow Jones Newswires; 88622 502-2557; jessie.ho@dowjones.com