Nanya Technology: Supply-Demand Imbalance to Persist This Year and Next, High Gross Profit Expected for Several Quarters
Nanya Technology General Manager Li Pei-ying stated that the DRAM market will continue to face supply shortages this year and next, expecting DRAM manufacturers to maintain high gross profits for several quarters. The company's Q1 revenue reached NT$49.087 billion, a 63.1% quarter-on-quarter increase, with a gross profit margin rising to 67.9%. Net profit after tax was NT$26.058 billion, and EPS was NT$8.41. Li Pei-ying anticipates a double-digit increase in DRAM average selling prices for Q2. New factory facilities are planned for construction by year-end, with equipment installation starting in Q1 next year. The US-Iran conflict's impact on raw material supply is limited due to alternative sources.
📋 Article Processing Timeline
- 📰 Published: April 13, 2026 at 17:18
- 🔍 Collected: April 13, 2026 at 17:31 (13 min after Published)
- 🤖 AI Analyzed: April 13, 2026 at 18:27 (55 min after Collected)
Nanya Technology General Manager Li Pei-ying announced today that the company cannot meet customer demand this year, and a similar situation is expected next year. He anticipates DRAM manufacturers will maintain high gross profits for several quarters. Nanya Technology held an online investor conference today to report its Q1 operating results. Benefiting from a more than 70% surge in DRAM average selling prices, which mitigated a 4% to 6% decrease in sales volume, Q1 revenue reached NT$49.087 billion, a 63.1% quarter-on-quarter increase. The Q1 gross profit margin climbed to 67.9%, an 18.9 percentage point increase from Q4 last year. Net profit after tax was NT$26.058 billion, with earnings per share (EPS) of NT$8.41 and net asset value per share of NT$62.25. Regarding the recent decline in DRAM spot prices, Li Pei-ying stated that the spot market accounts for a small proportion and had experienced unreasonable high prices due to speculation, thus not negatively impacting the overall DRAM market. He expects Q2 DRAM product average selling prices to be higher than Q1, with a double-digit increase, and that DRAM manufacturers should maintain high gross profits for several quarters. For the new factory, Li Pei-ying noted that cleanroom, water, electricity, and chemical supply facilities will be constructed by the end of this year, with equipment installation commencing in Q1 next year. On the impact of the US-Iran conflict on raw material supply, Li Pei-ying mentioned that alternative sources exist for oil-derived materials, and while there is tension, no risk to supply has been identified.