Nanya: DRAM Shortage to 2027, 30K Wafers/Month Capacity
According to reports from South Korea and Taiwan semiconductor industry updates, Nanya Technology held its 2026 shareholders’ meeting on May 21, where General Manager Pei-Ying Lee outlined a broadly optimistic outlook on memory market conditions, AI-driven demand, capacity expansion plans, and capital deployment strategies.
Lee stated that the ongoing tight supply and rising prices in the DRAM market are expected to persist, noting that the industry is gradually shifting away from highly cyclical fluctuations toward a more stable structural growth pattern. He emphasized that the rise of artificial intelligence is becoming the primary driver of the next wave of long-term memory demand expansion.
He further highlighted that current customer demand continues to significantly exceed supply, with many clients actively requesting long-term contracts extending beyond two to three years. As a result, the shortage situation is expected to remain tight at least through the end of next year. Looking further ahead to 2028, he believes the industry still has room for sustained growth, with supply-demand imbalances likely to persist.
Chairman Ming-Jen Tsou of Nanya Technology also noted at the meeting that the surge in AI demand is reshaping the memory industry structure. What was once considered a highly volatile cyclical market is increasingly evolving into a more stable and healthy structural growth industry.
On AI memory development, Lee revealed that the company is pursuing a differentiated technological roadmap. Instead of focusing on standard HBM3 or HBM4 products, the company is developing customized ultra-high-bandwidth memory solutions with higher performance characteristics. These solutions utilize wafer-to-wafer bonding technology and are designed to deliver bandwidth levels exceeding current JEDEC-standard HBM specifications.
He added that this customized AI memory product has already started generating small-scale revenue, with further growth expected. More meaningful revenue contributions are anticipated in the first half of 2027. He also confirmed that cooperation with multiple customers is progressing smoothly, involving more than one strategic partner.
The company previously disclosed that its AI memory technology brand, UltraWIO (Ultra Wide I/O), is not based on JEDEC-standard DRAM architecture. Instead, it is a customized solution tightly integrated with AI computing engines and may incorporate advanced wafer-on-wafer packaging technologies in the future.
In April, Nanya Technology introduced several major technology companies as strategic investors, including Kioxia, SanDisk, SK hynix’s Solidigm unit, and Cisco. Together, they subscribed to approximately 352 million shares, raising about NT$78.7 billion (around RMB 17 billion).
Lee explained that NAND flash used in SSDs still faces limitations in speed and power efficiency, leading customers to pair it with DRAM to enhance computational and data processing performance in AI cloud workloads. Nanya Technology supplies DRAM solutions that help optimize overall SSD performance for AI-driven applications.
Regarding capacity expansion, Lee confirmed that the company’s new fabrication facility is scheduled to begin equipment installation in Q1 2027, with mass production expected in the second half of the year. The new plant will add approximately 30,000 wafer starts per month and introduce next-generation process technologies. If execution proceeds as planned, total capacity could increase by 80% to 100% over the next three years, although he noted that long lead times for equipment remain a challenge across the supply chain.
The company’s capital expenditure plan for 2026 is set at approximately NT$50 billion, with 70% allocated to infrastructure such as fab construction and cleanroom facilities, and 30% dedicated to equipment procurement.
Addressing the impact of aggressive DRAM capacity expansion in mainland China, Lee said the influence is present but remains relatively stable. He stressed that the company’s strategy is to build differentiation through customized, high-value-added memory products, establishing a stronger competitive moat in advanced AI-driven memory solutions.
