Nanya Technology: Returns to Net Profit in Q1 2026, Double-Digit DRAM Price Increase Confirmed for Q2

Nanya Technology announced its first-quarter financial results and held its Q1 2026 earnings conference call on April 13. In the first quarter of 2026, the company reported revenue of NT$49.087 billion, representing a 63.1% increase quarter-over-quarter and a 582.9% increase year-over-year. Gross margin reached 67.9%, up 18.9 percentage points from the previous quarter and turning positive compared to the same period last year. Operating margin was 61.3%, an increase of 22.2 percentage points quarter-over-quarter, also turning positive year-over-year. Operating net profit was NT$30.111 billion, up 155.6% quarter-over-quarter, marking a return to profitability compared to the same period last year.

Currently, DDR5 revenue accounts for approximately 10% of the company's total, with the flexibility to adjust and increase this share based on demand. At the same time, the company continues to supply DDR4 and LPDDR4 products to help alleviate market shortages. In addition, customized AI UWIO memory has begun contributing to revenue. The expansion of the new fab is also progressing as planned, with equipment installation scheduled to begin in the first quarter of 2027. Development of third- and fourth-generation 10nm-class processes (1C/1D) as well as EUV technology is proceeding smoothly according to the original schedule.

Nanya Technology's President, Dr. Pei-Ing Lee, pointed out that the company's average selling price (ASP) for DRAM in the first quarter increased by more than 70% quarter-over-quarter and more than doubled year-over-year. Regarding the recent softening of DRAM spot market prices, he stated that this price correction is merely a short-term adjustment and does not signal a reversal of the industry's fundamentals. Once inventory and prices return to reasonable levels, the market will refocus on AI-driven long-term demand. Dr. Pei-Ing Lee believes that DRAM prices in Q2 will be better than those in Q1, with the increase confirmed to be in the double-digit range. Although future price increases may moderate, the overall upward trend remains solid. In terms of supply and demand dynamics, the current tight supply situation in the DRAM market is expected to continue through 2027.