Taiwanese DRAM manufacturer Nanya Technology has reported an extraordinary financial performance for October, with net profit attributable to owners of the parent company soaring by 1,006.38% year-over-year to NT$2.039 billion. This dramatic turnaround is directly fueled by the ongoing global recovery in DRAM prices, which have been rising sharply since August.
A key structural shift in the DRAM market is amplifying Nanya's success. As major global manufacturers like Samsung and SK Hynix shift their focus and capital expenditure to advanced products like HBM and DDR5, the supply for DDR4 memory has tightened significantly. Nanya, with its significant DDR4 production capacity, is positioned as a primary beneficiary of this shortage. Analysts note that DDR4 still holds about 20% of the DRAM market, and its supply crunch is expected to persist into the first half of next year, keeping prices high. The company is projected to become one of the world's largest DDR4 suppliers by 2026.
To solidify its position, Nanya is aggressively advancing its manufacturing capabilities. The company is upgrading its Taoyuan Fab3A with 1C/1D nanometer processes and building a new plant in the Nanzih Technology Park, with production slated to begin in 2027. These moves are aimed at meeting the surging demand, especially from AI servers, which are forecasted to account for nearly 40% of total DRAM demand by 2026.
ICgoodFind's Insight
Nanya Tech's explosive growth highlights a critical niche in the memory market. The company's strategic focus on DDR4, amid an industry-wide pivot to next-generation products, demonstrates how targeted capacity can capture exceptional value during periods of structural shortage.
