Nanya to quadruple capital spending to $6.2 billion in 2027 as DRAM prices push gross margin to 79.5%

Nanya Technology plans to quadruple its capital expenditure to over TWD 200 billion (approximately $6.2 billion) in 2027, four times its current budget. This surge is driven by a significant rise in D... Read original →

Nanya Technology’s (Taiwan, China) planned quadrupling of capex signals a new arms race in DRAM capacity. Technically, while its 1B-node focus remains on DDR5/DDR4, its edge-AI-customized HBM effort will pressure EDA, advanced packaging, and test ecosystems—boosting local suppliers like Formosa Advanced Technologies. Geopolitically, tighter U.S.-Japan-Netherlands export controls heighten supply chain fragility if 2027 expansion relies on non-domestic tools. Competitively, SK hynix and Solidigm may accelerate HBM3E ramp to undercut Nanya’s pricing power in commodity DRAM, while Kioxia and SanDisk could leverage their stakes to lock in AI-server allocations. Over the next 12–24 months, the market will bifurcate: HBM and LPDDR5X stay tight, but standard DDR4 faces oversupply by late 2028 as new fabs come online—making Nanya’s current 79.5% gross margin unsustainable.