Taiwan’s DRAM makers gain as AI demand tightens memory supply

Taiwan’s DRAM manufacturers are benefiting from a global shortage as AI infrastructure absorbs more memory production. Nanya Technology and Winbond are reporting sharply higher revenue and investing in new factories, while expanding their roles in servers, networking, vehicles, and industrial equipment.

DRAM provides the working memory that electronic systems need to process information. As major suppliers prioritize high-bandwidth memory and advanced server products, supply remains constrained elsewhere, creating opportunities for Taiwan’s DRAM producers in the PC, consumer electronics, and embedded markets.

Nanya’s October revenue reached NT$46.48 billion (approximately US$1.42 billion), up 3.07% from September and 487.73% from a year earlier. It was the company’s twelfth consecutive monthly revenue record. Sales for the first ten months totaled NT$311.76 billion (about US$9.53 billion), up 602.15%.

Higher prices explain much of that growth. Nanya’s third-quarter average selling prices increased by more than 60% from the previous quarter, even as memory shipments declined. Quarterly revenue reached NT$133.65 billion (about US$4.09 billion), with gross margin of 85.7%. In October, the company's shipments declined slightly after it exhausted its available inventory, although selling prices continued to rise.

AI infrastructure already accounts for more than 20% of Nanya’s revenue, including memory used in servers, networking, storage, and system management. Its new fab is scheduled to begin equipment installation in early 2027, reaching 30,000 wafer starts per month by the end of 2028. Future expansion will primarily follow customers’ AI projects under long-term supply agreements.

Winbond is also enjoying strong growth. Third-quarter consolidated revenue rose 278.2% year on year to NT$82.33 billion (about US$2.52 billion), while net profit attributable to shareholders reached NT$35.42 billion (US$1.08 billion). Its customized-memory business represented 58% of sales, supported by DDR4 and low-power LPDDR4 products. Flash memory contributed another 32%, reflecting Winbond’s broader product portfolio.

The company has approved NT$73.16 billion (approximately US$2.24 billion) for its Kaohsiung Module B expansion, covering construction, utilities, and production equipment. Groundbreaking is scheduled for December 29, with initial shipments targeted for the second half of 2029. Module B is a separate wafer fab building beside the operating Module A, sharing parts of the site’s infrastructure.

Winbond president Chen Pei-ming expects tight supply through 2027 and 2028, although some consumer-electronics customers are slowing purchases after building inventories. For Taiwan’s DRAM makers, the immediate gains come from higher prices. Their factory investments and long-term supply agreements aim to turn that opportunity into lasting customer business.