Nanya Technology said it will increase capital expenditure to more than $6.2 billion in 2027, about four times its spending this year, after reporting a 684% rise in Q2 revenue and a gross margin of 79.5%.

The Taiwanese memory maker reported unaudited Q2 revenue of T$82.55 billion, up 684% from 2025, and net income of T$50.19 billion, up 1,324%, with gross margin improving from negative 20.6% a year earlier. Capex rose from T$13.2 billion in 2023 to T$16.1 billion in 2024 and T$13.4 billion in 2025, and the company has budgeted up to T$52 billion for 2026.

Nanya targets bit shipment growth in the teens for the full year, and most of the revenue increase is driven by higher average selling prices, which climbed more than 70% quarter‑over‑quarter in Q1 2026. TrendForce expects a 13% to 18% rise in conventional DRAM contract prices in Q3.

About 70% of Nanya’s shipments are DDR4 and low‑power DDR4, while DDR5 accounts for roughly 10% of revenue. The company does not produce high‑bandwidth memory and has ruled out competing in HBM2, HBM3, HBM3E, or HBM4, though a customized edge‑AI HBM part is targeted for release at the end of 2026.

The first phase of Nanya’s new fab in New Taipei City’s Taishan District is expected to produce 30,000 wafers per month in 2028, expanding to 45,000 wafers per month thereafter, using its 1B‑class 10 nm process for DDR5, DDR4, and low‑power DDR4. Management said supply constraints are expected to be most severe in the first half of 2027 and to continue into 2028. Samsung’s P3 fab is projected to reach about 115,000 wafers per month by the end of this year.

The shortage that began in early 2027 may persist through 2028, indicating continued pressure on DRAM pricing and capacity expansion in the sector.