DRAM Prices Surge 60%, Nanya Q3 Profit Soars 5,474%

According to Nanya Technology, the company reported record revenue and net profit for the third quarter of 2026 on October 12, driven by surging DRAM prices and strong demand from AI infrastructure. Its gross margin reached a record 85.7%, with management expecting DRAM prices to continue rising in the fourth quarter.

Nanya Technology Q3 Net Profit Surges 5,474%

Nanya Technology reported third-quarter revenue of NT$133.649 billion, up 611.7% year over year and 61.9% quarter over quarter. Net profit reached NT$87.627 billion, soaring 5,474% year over year and 117.2% from the previous quarter. Earnings per share stood at NT$25.40.

The company attributed its strong performance to AI-driven DRAM demand, which has tightened memory supply across smartphones, PCs, and consumer electronics. Its average DRAM selling price increased by more than 60% quarter over quarter, although shipment volume declined by a mid-single-digit percentage.

AI infrastructure applications, including servers, networking, storage, and system management, now account for more than 20% of Nanya Technology's revenue.

DRAM Prices Expected to Rise Further in Q4

Nanya Technology General Manager Li Pei-ying expects DRAM prices to continue increasing in the fourth quarter as supply remains tight. Growing AI demand for high-capacity and high-bandwidth memory is putting additional pressure on conventional DRAM supply. The company also expects its gross margin to improve further, depending on product mix and market conditions.

New 5A Fab to Expand DRAM Production Capacity

To meet long-term customer demand, Nanya Technology plans to increase capital expenditure significantly in 2027, primarily to develop its new 5A wafer fab and advance DRAM technologies. Equipment installation at the new facility is expected to begin in the first quarter of 2027, with production capacity to expand gradually in subsequent years.

The company is also advancing next-generation 10nm-class DRAM processes, including 1C, 1D, and 1E, while developing advanced packaging technologies such as 3D IC and through-silicon vias (TSV).

AI ASIC Memory Projects Begin Initial Shipments

Nanya Technology has started limited shipments for an AI ASIC memory project with Western customers. Future capacity expansion will depend on customer product development and market demand. The company expects AI-related revenue to increase further from 2027 to 2029 as it expands its presence in AI infrastructure and related memory applications.

Despite capacity expansion by Chinese DRAM manufacturers, Nanya Technology believes that growing AI demand and long-term supply agreements will remain key factors shaping the global DRAM market.