UPDATE 1-Nanya Tech raises 2010 capex forecast

* Raises 2010 capex forecast to T$30 bln from T$22 bln

* 2010 shipment growth 35 pct; 70-100 pct growth in 2011

* Nanya shares up 0.6 pct before forecasts (Adds quotes and details)

TAOYUAN, Taiwan, July 21 (Reuters) - Nanya Technology Corp (2408.TW), Taiwan's No.2 DRAM chipmaker, raised its 2010 capital spending forecast by 36 percent on Wednesday as it aims to upgrade technology to meet growing demand.

Spending would be T$30 billion ($940 million) this year, up from a previous estimate of T$22 billion, as the company said it would churn out chips with more advanced process technology.

"Our sales from Europe slowed in several months in the second quarter because of a weaker euro and its debt problem, but the worst should have passed," Vice President Pai Pei-lin told reporters.

"We are seeing PC replacement among enterprises so demand will come back in the second half."

Powerchip Technology (5346.TWO), Taiwan's top DRAM chipmaker, has said it sees 2010 chip output more than doubling from last year as new computers and smartphones spur fresh demand, likely helping it to book a record profit this year. [ID:nTOE665021]

Nanya said its 2010 chip shipment growth, or growth of memory storage on chips, would be 35 percent, lower than a previous estimate of 45 percent, due to slower supply from Inotera (3474.TW), which is under a process of technology transition.

Pai said bit growth could be 70-100 percent next year.

On the same day, Inotera Memories, Nanya's chip venture with U.S. Micron Technology (MU.O), also raised its capex forecast to T$58 billion from T$52 billion to upgrade its technology.

Pai said chip prices will be stable in the third qauarter but declined to give financial forecasts for the current quarter.

Powerchip also aims to upgrade its process technology to 45-namometre from 63-nanometre.

The smaller circuitry allows the design of more powerful chips for more complex devices, and the squeezing of more circuits onto a single chip also increases chip yield per wafer, boosting efficiency.

However, sector leaders such as Samsung (005930.KS) and Hynix (000660.KS) in South Korea are also racing to upgrade their technology, and some industry analysts say a supply glut is likely later this year or early next year.

Nanya's forecasts came after the Taipei stock market closed on Wednesday. Nanya Tech shares rose 0.61 percent and Inotera shares were down 0.55 percent, versus the main TAIEX's .TWII 0.14 percent drop.

Nanya's second-quarter unaudited net loss reached T$1.024 billion, narrower than the year-ago loss of T$6.54 billion and the first quarter's loss of T$1.625 billion. (US$1=T$32) (Reporting by Baker Li, Editing by Jonathan Standing)