Nanya Plans Quadrupled Capital Spending Amid DRAM Price Surge
Taiwanese memory maker Nanya Technology plans to increase its capital expenditure to $6.2 billion in 2027, four times its budget for this year, driven by surging DRAM prices. This follows a 684% revenue increase in Q2, with gross margin reaching 79.5%. The move aims to support the company's growth and meet rising demand.
Key points
- Nanya Technology, a Taiwanese memory maker, plans to increase its capital expenditure to $6.2 billion in 2027, roughly four times its budget for this year.
- The company reported unaudited second-quarter revenue of T$82.55 billion, up 684% from 2025, and net income of T$50.19 billion, up 1,324%.
- Gross margin reached 79.5%, a significant improvement from a negative 20.6% in the same quarter of 2025.
- Nanya's average selling price for DRAM climbed over 70% quarter over quarter in Q1 2026, while bit shipments fell by a mid-single-digit percentage.
- The company targets bit shipment growth in the teens for the full year, with the revenue increase largely driven by price surges.
Nanya Technology, a Taiwanese memory maker, is set to quadruple its capital expenditure to $6.2 billion in 2027. This move follows a significant surge in DRAM prices, which has driven a 684% increase in the company's revenue for the second quarter.
According to President Pei-Ing Lee, the company's unaudited second-quarter revenue reached T$82.55 billion, with net income of T$50.19 billion, a 1,324% increase from 2025. Gross margin also improved significantly, reaching 79.5%, up from a negative 20.6% in the same quarter of 2025.
The company's average selling price for DRAM climbed over 70% quarter over quarter in Q1 2026, while bit shipments fell by a mid-single-digit percentage. Nanya is targeting bit shipment growth in the teens for the full year, with the revenue increase largely driven by price surges.
The move to increase capital expenditure aims to support the company's growth and meet rising demand for DRAM. However, the 2027 figure is preliminary and has not yet been approved by the board.
The impact of the DRAM price surge on the global technology industry remains to be seen. Analysts will be closely watching Nanya's performance in the coming quarters to gauge the sustainability of the price increase and the company's ability to meet growing demand.
Sources
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