$17B Bet: Kioxia, Cisco Back Nanya Tech

According to Nanya Technology, the company has completed a private placement totaling NT$78.718 billion (approximately RMB 17 billion), introducing four strategic investors to strengthen its position in the global memory market.

The investors include Kioxia, its affiliated brand SanDisk, Solidigm, and Cisco. Together, they subscribed to approximately 352 million newly issued common shares at NT$223.9 per share, representing a 1.15% discount to the closing price on the same day.

In terms of allocation, Kioxia subscribed to 70 million shares, Solidigm and Cisco each acquired roughly 71 million shares, while SanDisk took the largest portion with approximately 138.6 million shares, translating to a stake of about 4%. Shares issued through this private placement will be subject to a three-year lock-up period.

Nanya Technology stated that the proceeds will be fully invested in advanced memory manufacturing facilities and equipment, aiming to meet the rapidly growing demand for memory driven by artificial intelligence (AI) workloads. The private placement structure was chosen to accelerate fundraising while bringing in strategic partners across the industry value chain.

The financing comes amid tightening supply conditions in the global DRAM market. Strong demand for high-bandwidth memory (HBM), fueled by AI applications, has led major suppliers such as Samsung Electronics, SK hynix, and Micron Technology to shift capacity toward HBM production. This has created supply constraints for mainstream DRAM products such as DDR4 and DDR5, benefiting suppliers like Nanya Technology through increased orders and improved performance.

The company reported strong revenue growth, with February 2026 consolidated revenue reaching NT$15.61 billion, up 586% year-over-year. Combined revenue for January and February totaled NT$30.92 billion, representing a 597% increase compared to the same period last year.

Looking ahead, Nanya Technology expects the DRAM supply gap to persist through at least 2028, as AI-driven demand expands from cloud infrastructure to edge devices. To capitalize on this trend, the company plans to significantly increase capital expenditure to NT$50 billion in 2026—more than tripling year-over-year—primarily to expand production capacity.

A key project includes a new 12-inch DRAM fabrication plant in New Taipei City, designed for a maximum monthly capacity of 45,000 wafers. The facility will adopt 10nm-class process technology and is scheduled to begin mass production in the second half of 2027.

Industry analysts note that the participation of both upstream memory manufacturers and downstream system companies in this placement highlights a growing trend toward deeper supply chain collaboration. As demand for solid-state drives (SSDs) rises, so does the need for DRAM, prompting companies to secure long-term supply through both contractual agreements and equity investments. Some supply agreements in the memory sector are reportedly extending to 2030, with longer contract durations and flexible pricing structures becoming more common.