Nanya's average selling price climbed more than 70% quarter over quarter in Q1 2026, while its bit shipments fell by a mid-single-digit percentage, its own results deck shows. The company is targeting bit shipment growth in the teens for the full year, so almost all of the 684% revenue increase is due to price. Meanwhile, TrendForce projects a further 13% to 18% rise in conventional DRAM contract prices in Q3.
Roughly 70% of Nanya's shipments are DDR4 and low-power DDR4, Lee said at a January earnings conference, and DDR5 contributes about 10% of revenue. Nanya builds no high-bandwidth memory, and Lee has ruled out competing in HBM2, HBM3, HBM3E, or HBM4. A customized HBM part for edge AI, developed with Etron Technology, Piecemakers Technology, and Formosa Advanced Technologies, is targeted for the end of this year, however. Its 79.5% margin is close to a pure reading on conventional DRAM, and it sits within six points of the 85% consolidated gross margin Micron reported in its most recent 10-Q with HBM in the mix.
SanDisk, Kioxia, Solidigm, and Cisco paid T$78.72 billion for 10.19% of Nanya in a private placement completed in April, with SanDisk and Kioxia signing long-term DRAM supply agreements alongside the equity. Three of the four make SSDs and need DRAM for cache. Solidigm is a subsidiary of SK hynix, the world's second-largest DRAM maker, and it went to a supplier holding roughly 2% of the market to source it.
SK hynix to invest $712.5 billion in South Korean operations
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/nanya-to-quadruple-capital-spending-to-6-2-billion-in-2027#main
- https://www.tomshardware.com/membership
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