Nanya Technology Posts 85.7% Q3 Gross Margin as DRAM Contracts Reset

Nanya Technology reported record third-quarter profitability as DRAM average selling prices rose more than 60% sequentially. The company attributed the increase mainly to contract repricing amid tight supply, while planned capacity additions target AI-related memory demand from 2028 onward.

Key takeaways

• Q3 revenue reached NT$133.649 billion, up 61.9% sequentially and 611.7% year on year.
• Net income was NT$87.627 billion, with EPS of NT$25.40.
• DRAM ASP rose more than 60% sequentially, while sales volume declined by a mid-single-digit percentage.
• Nanya expects DRAM pricing to remain firm in Q4, although increases will vary by product.
• Its new fab is targeted to reach 30,000 wafer starts per month in 2028 and 50,000 in 2030.

Nanya Technology reported a sharp increase in third-quarter profitability as DRAM contract prices reset in a supply-constrained market. The Taiwan-based memory supplier said third-quarter revenue reached NT$133.649 billion, up 61.9% from the previous quarter and 611.7% from a year earlier. Net income was NT$87.627 billion, while EPS reached NT$25.40. The figures are company-prepared consolidated results and have not yet been reviewed by auditors.

Gross margin rose to 85.7%, up 6.2 percentage points sequentially. Operating margin reached 80.0%. For context, the margin was above TSMC’s reported 67.7% second-quarter 2026 gross margin, although the two companies have different business models and product mixes.

The earnings increase was driven primarily by pricing rather than volume. Nanya said its DRAM ASP increased by more than 60% sequentially, while sales volume declined by a mid-single-digit percentage. General Manager Li Peiying attributed the pricing change to the expiration of some older long-term supply agreements at the end of June. From July, shipments under new contracts reflected materially higher market prices.

Nanya expects the DRAM market to remain seller-favorable in the fourth quarter, with further price increases possible. The company cautioned that the magnitude will differ across product categories. It also said that reports of improved DDR4 availability in parts of the PC market do not demonstrate broad supply normalization, because many PC vendors have migrated to DDR5 while DDR4 demand remains concentrated in existing platforms and replacement applications.

The company is expanding capacity for longer-term AI infrastructure demand. Nanya said AI-related infrastructure, including servers, networking, storage and systems management, represented more than 20% of revenue. Its Linkou 5A fab is scheduled to begin equipment installation in the first quarter of 2027, with targets of 30,000 wafer starts per month by the end of 2028 and 50,000 by the end of 2030. The company’s previously approved investment plan puts total 5A spending at approximately US$16 billion, including EUV equipment.

Nanya also plans a 3D wafer packaging and testing facility in Pingtung. TSV and wafer-stacking technologies are targeted for introduction by the end of 2028. These projects are intended to increase supply of advanced memory products, but near-term availability will remain constrained by equipment lead times, process qualification and the pace of customer adoption.

Sources

• Company release, Nanya Technology, October 12, 2026 — Q3 2026 consolidated financial results
• Company release, Nanya Technology, August 5, 2026 — 5A fab investment and capacity plan
• Central News Agency, October 12, 2026 — DRAM shortage and pricing outlook
• TVBS, October 12, 2026 — Q4 pricing and DDR4 supply
• Reuters, July 16, 2026 — TSMC Q2 2026 results and gross margin context

FAQ

What drove Nanya Technology’s Q3 profit increase?

Higher DRAM contract prices were the main driver. ASP rose more than 60% sequentially, while sales volume declined by a mid-single-digit percentage.

Is the DDR4 shortage easing?

Nanya said weaker shortage signals from some PC customers mainly reflect migration to DDR5 and do not indicate that DDR4 supply is broadly balanced.

When will Nanya’s new capacity become available?

The Linkou 5A fab is scheduled to begin equipment installation in Q1 2027 and target 30,000 wafer starts per month by 2028.

Why is the expansion relevant to AI?

Nanya is directing future capacity and advanced packaging investments toward AI-related infrastructure and memory demand.