Nanya Technology Corp. reported a NT$1.94 billion ($60.6 million) net loss for the first quarter despite a 9.3% sequential revenue increase to NT$7.19 billion. The Taiwanese memory chipmaker, ranked fourth globally in DRAM production, saw operating losses widen to NT$3.16 billion with a negative operating margin of 43.9%, deteriorating 1.1 percentage points from the previous quarter.
The company’s gross margin fell 4.4 percentage points to negative 15% as average selling prices declined by a single-digit percentage, even as sales volumes increased. President Lee Pei-ing expressed confidence that DRAM prices won’t slide significantly further and could gradually rise, citing improved market demand from Chinese government stimulus measures and ongoing AI development.
Nanya has made progress with its 10-nanometer class second-generation process, which now accounts for one-third of production capacity. The company has begun shipping 16Gb 5600 DDR5 products and is sampling 6400 products this quarter. Lee noted that US tariff measures would have minimal direct impact on Nanya as the company’s direct sales to America represent a small portion of its business. Management expects gross margins to potentially turn positive with profitability improving throughout 2025.
