On January 19, major DRAM manufacturer Nanya Technology released its 2025 financial results, posting explosive growth driven by AI‑fueled DRAM shortages and price increases. The company reported a 804.2% year‑over‑year surge in fourth‑quarter net profit, returning to full‑year profitability with significantly improved earnings power.
The quarterly figures are striking across key metrics. In Q4 2025, Nanya’s revenue reached NT$30.094 billion, soaring 60.3% sequentially and 357.7% year‑over‑year. Gross profit hit NT$14.759 billion, up 326% quarter‑over‑quarter and 2,225% year‑over‑year, while the gross margin jumped to 49%, a 30.5‑percentage‑point increase from the previous quarter. Profitability was even stronger: operating profit reached NT$11.781 billion, up 519% year‑over‑year and 952.6% sequentially; after‑tax net profit was NT$11.083 billion, skyrocketing 804.2% year‑over‑year and 608.9% quarter‑over‑quarter, with a net margin of 36.8%. Quarterly EPS came in at NT$3.58, a dramatic reversal from the loss reported in the prior quarter.
For the full year, revenue totaled NT$66.587 billion, up 95.1% year‑over‑year, while after‑tax net profit reached NT$6.603 billion, a 229.9% surge. Full‑year EPS stood at NT$2.13, a fundamental improvement from the loss of NT$1.64 per share in 2024. The strong performance was driven by a more than 30% sequential increase in DRAM average selling prices, coupled with low‑double‑digit volume growth and sustained full‑capacity utilization. In terms of product mix, DDR4 and LPDDR4 accounted for over 70% of revenue, forming the core revenue pillars, while DDR5 shipments exceeded 1% and are already seeing significant price momentum.
Discussing the market outlook, Nanya President P.Y. Li noted that tight DRAM supply‑demand conditions are prompting downstream customers to enter long‑term contracts and lock in prices, supporting continued industry strength. He expects DRAM prices to keep rising in Q1 2026, albeit at a more moderate pace, with DDR4 and LPDDR4 supply remaining tight due to capacity and demand shifts, and DDR5 possessing strong upward pricing momentum. Long‑term, AI and server demand will continue driving DRAM growth, with notable increases in HBM and traditional RDIMM demand, while rising storage capacities in PCs and smartphones underpin steady demand. With limited new capacity expected from 2026 through the first half of 2027, supply‑demand gaps are likely to persist. To avoid misallocation, the company will differentiate order handling based on customer history and carefully manage the risk of double‑ordering.
On capacity and technology, Nanya has planned 2026 capital expenditure of about NT$50 billion (including NT$6.2 billion deferred from 2025), pending board approval. The company has already completed functional testing of its 128GB DDR5 RDIMM, is steadily advancing 10nm‑class processes and customized AI projects, and expects to start installing equipment in a new fab in early 2027, focusing on next‑generation memory solutions.
Addressing U.S. pressure for a “100% tariff” on memory chips, Li clearly stated that Nanya has no plans to build fabs in the United States. He noted that the company’s direct U.S. revenue share is relatively low though growing, and it is too early to assess the impact of the new tariff agreement on Taiwanese DRAM makers—future responses will be evaluated based on policy and market developments. Regarding Micron’s acquisition of Powerchip’s Tongluo fab, Li believes both sides will need time for equipment procurement and process transfer, with limited market impact expected in the first half of this year and next.
ICgoodFind: Nanya Technology has capitalized on the industry tailwind to deliver stellar results. By maintaining its local capacity footprint and executing its technology and capacity roadmap, the company is well‑positioned to continue benefiting from the strong DRAM upcycle.
