Dramatic Boom for This Small RAM Producer: Old DDR3 and DDR4 Still in High Demand

The DRAM memory market continues to surge, and the financial results of Nanya Technology in the first quarter of 2026 are evident proof of this. The Taiwanese manufacturer recorded a 583% year-over-year revenue growth, mainly driven by the surge in prices and demand for legacy memories, namely the previous generation ones.

Until mid-2025, Nanya found itself in a complex situation, with margins pressured by extremely low prices for DDR4 and DDR3. The transition to DDR5 was also proceeding slowly, limiting the company's competitiveness compared to other industry players.

The changing scenario materialized from the end of last summer when global memory demand began to grow rapidly. Data from the first quarter of 2026 now shows a marked improvement in almost all financial metrics, with triple-digit increases and, in some cases, even quadruple-digit increases.

Particularly noteworthy is the EBITDA (gross operating margin), which marked an increase of 4,043% compared to the same period last year. The comparison with the fourth quarter of 2025 also highlights a further strengthening of the financial position.

Despite the market's focus on new generations of memory, the contribution of DDR5 to Nanya's revenue remains limited. For the entirety of 2026, it is estimated to represent about 10% of sales, while the predominant share will continue to be generated by DDR4, and to a lesser extent, by DDR3.

This data reflects both the company's production positioning and the still strong demand for established technologies, especially in a high-price context that has favored the monetization of mature production processes.

The improvement in accounts now allows Nanya to plan an increase in investments. A key element is the entry of several major industrial clients into its capital, including Solidigm, SanDisk, and Kioxia, which have collectively acquired about 10.2% of the company for approximately $2.5 billion, while also committing to ensure long-term purchasing volumes. This operation strengthens commercial stability and offers greater visibility on future demand.

On the technological front, Nanya aims to close the gap accumulated on DDR5. The new capital will be allocated to the development of advanced production processes, including third and fourth generation 10nm class nodes (1c and 1d) and the introduction of EUV lithography. Finally, the construction of the new factory is proceeding as planned, with equipment installation expected in the first quarter of 2027. At full capacity, the site should reach a production capacity of about 45,000 wafers per month.