Nanya Tech: Cooperating with Multiple AI Firms, DRAM Shortage Expected to Last Until End of Next Year

(CNA, Taoyuan, May 21, by reporter Chang Chien-chung) Lee Pei-Ing, President of memory manufacturer Nanya Technology, stated today that Nanya Tech is collaborating with multiple international AI companies, and four clients recently participated in a private placement, all targeting cloud AI applications. He also pointed out that the supply-demand gap for Dynamic Random Access Memory (DRAM) could persist until the end of next year. Nanya Technology held its annual shareholders' meeting today. Regarding shareholder concerns about rumors of Nanya Tech partnering with a leading foundry to enter the supply chain of a top US AI chip company, Lee said that Nanya Tech is cooperating with more than one international AI company, quite a few in fact. He declined to comment on specific projects with individual clients, citing their business secrets. Lee stated that four clients—Solidigm (a subsidiary of SK Hynix), Sandisk Technologies (a subsidiary of Sandisk), Kioxia, and Cisco—recently participated in Nanya Tech's private placement, all targeting cloud AI applications. Additionally, there are other clients with intentions and opportunities for collaboration. Lee said that current production capacity cannot meet client demand and expects the DRAM market's supply-demand gap to continue until the end of next year. As the privately placed shares subscribed by the four clients, including Cisco, have a three-year lock-up period, Nanya Tech has committed to supplying them for three years. Regarding the new fab's progress, Lee stated that equipment installation is scheduled to begin next year, with output contribution starting from the end of next year to the year after. It is expected to add over 30,000 wafers, and in 2 to 3 years, Nanya Tech's capacity is projected to increase by 80% to 100% compared to the present. As for the impact of Chinese memory manufacturers' expansion, Lee said that Chinese firms have been expanding continuously over the past 13 years, and their current production scale is five times that of Nanya Tech. Although this has had an impact, the situation is currently stable, and Nanya Tech will respond through differentiation. Progress on high-bandwidth memory in collaboration with clients is going smoothly, with a small revenue contribution already and opportunities for future growth. Regarding the postponed Samsung strike, Lee commented that regardless of whether a strike occurs, its market impact would only be a short-term effect, and stability will return in the long run.