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Nanya Technology reports significant profit growth amid expected DRAM shortages through early next year

Wednesday, March 4, 2026 at 01:19 AM

Nanya Technology reported a massive 1,257% year-on-year increase in February net profit to NT$7.58 billion, driven by surging prices for DDR4 and DDR5 DRAM. The company forecasts that DRAM supply shortages will persist throughout the first half of the upcoming year.

Context

Taiwanese memory maker Nanya Technology reported a staggering 1,257% year-on-year increase in February net profit, reaching NT$7.58 billion. This surge is driven by aggressive price hikes for DDR4 and DDR5 DRAM, as the industry transitions out of a cyclical downturn. The company expects supply-demand tightness to persist, forecasting DRAM shortages through the first half of 2027. This outlook aligns with broader market trends where AI-driven demand is cannibalizing traditional production capacity. The shortage is exacerbated by top-tier vendors like Samsung Electronics, SK Hynix, and Micron reallocating wafer starts toward high-margin HBM and DDR5 to support AI infrastructure. This shift has left legacy segments like DDR4 in a supply vacuum, causing prices to rise even faster than newer generations. Investors should note that Nanya is accelerating its own capacity expansion and capex to capture this sustained pricing leverage, mirroring the record-breaking revenue runs recently reported by its larger South Korean and American peers.

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