Nanya Technology posted a 46.4% quarterly revenue increase to NT$10.53 billion ($360 million) in its second quarter, signaling potential stabilization in the battered DRAM memory market. The Taiwanese chipmaker’s shipment volume surged 70% even as average selling prices continued declining.
The revenue jump masks persistent profitability challenges. Nanya recorded a net loss of NT$41.09 billion ($1.4 billion), with negative margins across operations. Currency fluctuations against the dollar added NT$11.24 billion ($384 million) to quarterly losses, while process transformation costs weighed on results.
General Manager Li Peiying expressed confidence about third-quarter gross margins turning positive, though the company continues burning cash after ten consecutive quarters of losses. Nanya has struggled through an extended downturn that industry observers partly attribute to Chinese oversupply in the DRAM market.
The memory sector is experiencing recovery driven by artificial intelligence demand, particularly for high-bandwidth memory used in data centers. Major competitors Samsung, SK Hynix, and Micron are reportedly planning to cease DDR3 and DDR4 production by late 2025, potentially tightening supply for older memory types that Nanya produces.
Nanya has advanced its 10-nanometer manufacturing processes and completed engineering verification for technologies supporting AI applications. The company expects contract price improvements and inventory normalization to support near-term performance, though achieving sustainable profitability remains uncertain.
