Nanya Technology forecasts higher DRAM prices and margins in Q4 amid tight supply
Nanya Technology's president Lee Pei-ing said the company expects DRAM prices and gross margins to keep rising in the fourth quarter as the market stays severely undersupplied.
At an online investor conference, Lee Pei-ing said Nanya Technology expects DRAM prices and gross margins to continue climbing in the fourth quarter because the memory market remains tightly constrained. The firm reported Q3 revenue of NT$133.649 billion, up 61.9% from the prior quarter, with average DRAM selling prices rising more than 60% quarter-on-quarter. Although shipments fell 4-6% as inventories were drawn down, gross margin improved to 85.7%, and net profit reached NT$87.627 billion.
Lee attributed the profit surge to higher contract prices that took effect after long-term agreements expired in June and to growing demand from AI workloads, which now account for over 20% of revenue. The company will begin installing equipment at its new 5A fab in Q1 2027, targeting 30,000 wafers per month by the end of 2028 and 50,000 by 2030, while also expanding capital expenditures supported by NT$270 billion in cash.
Why it matters
Higher DRAM prices and margins signal tighter supply, affecting tech costs and AI hardware availability worldwide.
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