Nanya to quadruple capital spending to $6.2B by 2027 amid DRAM price surge

Taiwanese memory manufacturer Nanya Technology has announced plans to quadruple its capital expenditures to $6.2 billion by 2027, up from its current budget. This decision follows a dramatic surge in DRAM prices, which pushed the company's gross margin to a record 79.5% in Q2—compared to a negative 20.6% in the same period last year.

In Q2, Nanya's revenue surged 684% year-over-year to $2.5 billion, while net profit increased over 13-fold. The primary driver was a 70% quarterly increase in average memory prices, despite a slight decline in shipment volumes, highlighting the company's reliance on favorable pricing conditions.

The company plans to build a new fab in Taishan (New Taipei), targeting a monthly capacity of 30,000 wafers by 2028, later expanding to 45,000. Production will focus on DDR5, DDR4, and low-power DDR4 using the 1B (10nm) process. Nanya's management expects DRAM shortages to persist until 2028.

In April, Nanya secured $2.4 billion from strategic investors, including SanDisk, Kioxia, Solidigm (an SK hynix subsidiary), and Cisco. These investors acquired a 10.19% stake and signed long-term supply agreements, ensuring stable DRAM deliveries for SSD and networking equipment production.

Despite growth, Nanya will not compete in the high-bandwidth memory (HBM) segment, focusing instead on traditional solutions. However, the company is developing customized HBM modules for edge AI in collaboration with partners, with market launches expected by year-end.