News

Winbond Electronics increases annual CapEx to US$1.3 billion as capacity is booked through 2027

Monday, March 9, 2026 at 03:07 AM

Winbond Electronics is seeing capacity booked through 2027 and is limiting new order commitments to 3-month windows to manage high demand. The company reported record February sales of NT$23.8 billion, a 91.2% year-on-year increase. To address supply constraints, Winbond is significantly increasing its annual capital expenditure from NT$5.5 billion to NT$42.1 billion (US$1.3 billion).

Context

Memory chipmaker Winbond Electronics is aggressively expanding its production capacity as artificial intelligence demand drives a historic upcycle. The company has approved a record capital expenditure of NT$42.1 billion (US$1.3 billion) for 2026, a massive jump from the NT$5.5 billion spent the previous year. Approximately 95% of this outlay is dedicated to wafer fabrication equipment (WFE), benefiting major toolmakers like Applied Materials, ASML, Lam Research, KLA, and Tokyo Electron. This investment aims to double Winbond’s DRAM bit shipments and increase NOR and NAND flash output by 30% to 40% annually. The expansion is critical as the company’s capacity is reportedly fully booked through 2027, with management maintaining a cautious three-month limit on new orders to manage the supply gap. With DRAM prices projected to surge nearly fourfold by mid-2026, Winbond is positioning its Taichung and Kaohsiung sites to capture sustained revenue growth from AI infrastructure and edge computing.