[News] DDR4 Shortage Reportedly Limits Nanya Tech’s DDR5 Shift; GM Says DRAM Margins Across Segments Top HBM

As global memory giants led by Samsung phase out DDR4 production, Taiwanese DRAM maker Nanya Technology is emerging as a key beneficiary of the resulting supply squeeze. According to Yahoo! Finance, General Manager Lee Pei-ying said that due to a significant supply gap in DDR4 and LPDDR4, many customers are proactively seeking long-term contracts to secure stable supply, with contract terms extending up to three years.

The same tight supply backdrop is also shaping Nanya Tech’s product mix. Citing Lee, JOV Media reports that DDR5 currently accounts for about 10% of sales, as persistent LPDDR4 shortages limit a faster shift into DDR5 production.

Notably, Lee added that this legacy DRAM tightness is also supporting pricing power across segments, with margins across all DRAM products currently outperforming HBM, according to the report.

As noted by MoneyDJ, Nanya Technology reported 2025 consolidated revenue of NT$66.59 billion, up 95.1% year-on-year, with net profit of NT$6.61 billion and EPS of NT$2.13. The company attributed the strong results to global memory makers cutting DDR4 and LPDDR4 output from Q2 last year, which drove a sharp rise in DDR4 prices and significantly improved Nanya’s operations from Q3 2025 onward, with profits further surging in Q4, the report adds.

According to Central News Agency, Nanya Tech aims to complete qualification this year for 16Gb DDR5 (shrink version), 16Gb DDR4, and 8Gb/16Gb LPDDR4, while also beginning pilot production of 8Gb/16Gb LPDDR5. Meanwhile, 16Gb DDR5 based on the 1C process is expected to complete qualification in the second half of 2026, while the 1D-process version will enter pilot production in the second quarter, the report notes.

Amid tight demand, Central News Agency, citing Lee, suggests that the new fab is scheduled to begin equipment installation in 2027, with output contribution expected from late 2027 to 2028. The expansion is projected to add more than 30,000 wafer starts, with total capacity expected to increase by 80% to 100% within two to three years, as per the report.

The company is also co-developing customized, high-performance, low-power, ultra-high-bandwidth memory with partners, with revenue contributions expected in the first half of 2027, according to Central News Agency.

Global Clients Secure Long-Term DRAM Supply

Meanwhile, Lee also disclosed further details surrounding Nanya Tech’s US$2.5 billion private placement, which was backed by four major clients: SK hynix subsidiary Solidigm, SanDisk Technologies, Kioxia, and Cisco.

According to the Central News Agency, the shares subscribed by the clients are subject to a three-year lock-up period, with Nanya committing to matching three-year supply agreements as customers move to secure DRAM capacity amid persistent shortages, which the company expects to continue through the end of 2027.

Separately, amid market speculation that Nanya Tech is partnering with a foundry to enter the Rubin AI platform supply chain of a leading U.S. AI chipmaker, the company declined to comment on individual customers or specific projects, according to Next Apple.

Lee, as per the report, added that Nanya is currently working with multiple international AI clients, but said details of the partnerships cannot be disclosed due to customer confidentiality and commercial considerations.

Read more

• [News] Nanya Tech Reportedly Sees Double-Digit DRAM Price Gains in Q2, with Multiple Partnerships in Discussion
• [News] NAND Leaders Bet on Taiwan’s DRAM Maker: Why Kioxia, SanDisk, SK hynix Back Nanya Tech’s $2.5B Deal?

(Photo credit: Nanya Tech)