Nanya Technology sharply increased its 2024 bit growth forecast to above 50% from an earlier projection exceeding 40%, according to investors who attended a closed-door meeting with Macquarie Securities. The 25% upward revision signals that Taiwan’s DRAM maker is capitalizing on robust order volumes beyond mere price gains in a supply-constrained market.
The Taipei-based chipmaker benefits from a severe DDR4 shortage created as Samsung, SK Hynix and Micron redirect capacity toward more profitable DDR5 and high-bandwidth memory for artificial intelligence applications. Industrial PC giant Advantech recently disclosed that tight DDR4 availability compressed its gross margin by roughly 1 percentage point last quarter.
Nanya’s third-quarter gross margin climbed to 18.5% while free cash flow reached NT$4.15 billion ($130 million), the first positive reading since 2021. The company said it’s prioritizing sales of DDR4 and LPDDR4 chips, currently the scarcest and highest-priced memory products.
Management also outlined plans to accelerate next-generation technology, with DDR5 5600 chips now representing 10% of shipments and DDR5 6400 specifications finalized. Development work on through-silicon vias, dual die packages and customized high-bandwidth memory for AI workloads is progressing, positioning the firm for higher-margin segments.
CEO Lee Pei-ying previously characterized 2025 as promising, driven by AI-related memory demand and continued supply discipline from major manufacturers in legacy DRAM production.
