Nanya Technology: DRAM Memory Shortage Expected to Last Until Early 2028
DRAM manufacturer Nanya Technology forecasts that the current shortage of memory chips will persist until early 2028. Delays in expanding production capacity are impacting supply.
Taipei – The shortage of DRAM memory chips is expected to continue until early 2028, Nanya Technology announced during an investor conference. According to the company, the demand driven by artificial intelligence is causing structural shifts in the DRAM market. Furthermore, delays in the construction of new facilities and the delivery of semiconductor manufacturing equipment are slowing the ramp-up of new production capacity, thereby postponing supply improvements.
Nanya Technology stated that 50% to 70% of its current production capacity is already committed through long-term agreements (LTAs) ranging from one to three years. Over 20% of its capacity is secured by three-year LTAs. The company plans to increase the proportion of LTAs based on customer demand and is working with clients to establish longer-term, more specific supply commitments.
The company aims to increase the contribution of its AI infrastructure-related business to its revenue to 40%, or even over 50%, by 2029–2030. In the most recent quarter, the average selling price of DRAM chips increased by more than 60% sequentially, with Nanya Technology reporting a gross margin of 85.7%.