Memory maker Nanya Technology reported a strong rebound in the fourth quarter of 2025, driven by a more than 30% rise in DRAM average selling prices compared with the previous quarter and a 10% to 15% increase in sales volume. This boosted the quarterly gross margin to 49%, improving approximately 30.5pp from the third quarter. Fourth-quarter net profit after tax surged to NT$11.08 billion (US$351.08 million).
Amid robust memory demand, Nanya plans to ramp up capital expenditure to NT$50 billion in 2026, with new production capacity scheduled to come online gradually in the first half of 2027.
Nanya's fourth-quarter 2025 revenue reached a single-quarter high of NT$30.09 billion, marking a 60.3% quarter-over-quarter and 357.69% year-over-year increase. Operating income hit NT$11.78 billion, translating into an operating margin of 39.1%, up 33.1% from the third quarter.
Including NT$1.6 billion in non-operating income, net profit after tax in the fourth quarter exceeded NT$10 billion for the first time, reaching NT$11.08 billion. This represented a sharp increase of 608% sequentially and 804% year over year, with a net margin of 36.8%, setting a new high for the same period.
For the full-year 2025, Nanya posted revenue of NT$66.59 billion, up 95.09% year over year, reaching the highest level in nearly four years. Net profit after tax totaled NT$6.6 billion.
Nanya's board of directors had originally approved a capital expenditure budget cap of NT$19.6 billion for 2025; however, actual spending came in at NT$13.4 billion, with NT$6.2 billion deferred to 2026. Looking ahead, the capital expenditure for 2026 is projected to be about NT$50 billion, pending final board approval.
In terms of technology and capacity planning, the 10-nanometer third-generation process (1C), fourth-generation process (1D), and customized artificial intelligence (AI) projects are all progressing as scheduled. The new plant is expected to begin equipment installation in early 2027 to deliver competitive next-generation memory solutions.
Nanya expects AI and general-purpose servers to continue to be key growth drivers for DRAM demand in 2026. Due to industry-wide capacity constraints, multiple DRAM products—including DDR5, LPDDR5, DDR4, LPDDR4, and DDR3—are expected to remain in short supply. High-bandwidth and high-density DRAM is set to see wider adoption across cloud and edge AI applications.
Article edited by Jerry Chen
