ADATA Technology rode a wave of DDR4 memory shortages to deliver its strongest quarterly performance in more than 15 years, with second-quarter net income jumping 67% as the Taiwanese manufacturer capitalized on supply constraints created by industry giants.
The memory module maker reported net income of NT$8.79 billion ($270 million) for the three months ended June, up from NT$5.27 billion in the prior quarter. Revenue climbed 29% to NT$12.82 billion ($395 million), marking the highest quarterly sales since 2009.
DDR4 prices have surged dramatically this year as Samsung Electronics, Micron Technology and SK Hynix phase out production of the legacy memory standard to focus on more profitable DDR5 and high-bandwidth memory for artificial intelligence applications. Industry data shows DDR4 prices have increased 132% over three months, creating an unexpected bonanza for companies like ADATA that still produce the older chips.
ADATA’s gross margin expanded by more than five percentage points to 19%, while operating margin reached 9.6%. The company generated earnings per share of NT$2.75, contributing to first-half net income of NT$14.05 billion ($432 million).
Chairman Chen Li-pai told investors he expects the DDR4 shortage to intensify in the second half as major suppliers continue their planned production cuts. Industry analysts project DDR4 consumer prices could rise 85% to 90% in the third quarter as server demand crowds out PC and consumer applications.
While ADATA benefits from the memory crunch, the company is also positioning for future growth with AI server products entering customer validation phases and expanding its enterprise storage portfolio with DDR5 modules and high-performance solid-state drives.
