Nanya Technology: Supply-Demand Imbalance This Year and Next, High Gross Profit Expected to Last Several Quarters

(Central News Agency reporter Chang Chien-chung, Taipei, 13th) Nanya Technology President Lee Pei-ying stated today that the company will not be able to meet customer demand this year, and a similar situation is expected next year, anticipating that DRAM manufacturers will maintain high gross profits for several quarters.

Nanya Technology held an online investor conference today to explain its Q1 operating results. Benefiting from a surge of over 70% in DRAM average selling prices, which mitigated the impact of a 4% to 6% decrease in sales volume, Q1 revenue reached NT$49.087 billion, a 63.1% quarter-on-quarter increase.

Nanya Technology's Q1 gross profit margin climbed to 67.9%, an increase of 18.9 percentage points from Q4 last year. Net profit after tax was NT$26.058 billion, with earnings per share of NT$8.41 and net asset value per share of NT$62.25.

Regarding the recent decline in spot DRAM prices, Lee Pei-ying said that the DRAM spot market accounts for a small proportion, and due to past speculation, prices were unreasonably high. He has not observed any negative impact on the overall DRAM market.

Lee Pei-ying stated that the average selling price of DRAM products in Q2 is expected to be higher than Q1 levels, with a double-digit increase, and DRAM manufacturers are expected to maintain high gross profits for several quarters. Nanya Technology will not be able to meet customer demand this year, and a similar situation is expected next year.

As for the progress of the new plant, Lee Pei-ying pointed out that cleanroom, water, electricity, and chemical supply facilities will be constructed by the end of this year, with equipment installation scheduled to begin in Q1 next year.

Regarding the impact of the US-Iran conflict on raw material supply, Lee Pei-ying said that if raw materials are derived from petroleum, alternative sources are available. Although the US-Iran conflict creates tension in raw material supply, it does not pose a risk. (Editor: Huang Kuo-lun) 1150413