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Nanya Sees Revenue Boost Amid DRAM Market Recovery

Despite slight monthly decline, Nanya's revenue surges year-on-year, fuelled by AI-driven demand and tech transitions
Taiwan
n 2408.TW Mid and Small Cap 2000 Semicon 75 Tech 350
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Nanya Technology Corporation recently disclosed its consolidated revenue for February 2024, showcasing a slight monthly decrease of 0.32% with a total of NT$3.051 billion. Yet, this figure represents a substantial year-on-year growth of 50.56%, attributed to the rejuvenating memory market. The cumulative revenue for the year has reached NT$6.112 billion, marking a 42.87% increase from the previous year, signaling a robust recovery phase for the company.

General Manager Li Peiying has highlighted the ongoing revival of the DRAM market, spurred by escalating demand for High Bandwidth Memory (HBM) driven by AI applications, alongside the industry’s shift from DDR4 to DDR5 technology. These factors are expected to bolster demand and nudge prices upwards throughout 2024. Despite the optimistic market trends and a resumed upward trajectory in prices, the company faces hurdles in overcoming its losses in the first half of the year due to the previous steep decline in DRAM prices. However, Nanya remains focused on turning its fortunes around in the latter half of the year.

Peiying also referenced the market’s rebound post the impacts of global challenges like the pandemic and geopolitical tensions. The DRAM sector’s resurgence is underpinned by solid growth prospects, especially with the ongoing technological advancements and the anticipated quarter-over-quarter price increments. Nonetheless, the path to regaining peak price levels is steep, given the dramatic price drops experienced over the past two years, posing significant challenges in achieving profitability within the envisaged timeframe. Despite these obstacles, the company is optimistic about continuous improvements and the potential for growth in the forthcoming quarters.

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