Nanya Technology Focuses on DDR4 Production, New Fab Set for 2028
Memory chip manufacturer Nanya Technology stated that its current shipments are primarily DDR4 and LPDDR4, as competitors shift to newer standards. The company also targets a new fabrication plant to reach 30,000 wafers per month by 2028.
Memory chip maker Nanya Technology announced on July 10 that its current production is predominantly focused on DDR4 and LPDDR4 memory standards. This strategic decision comes as major competitors redirect their capacity towards the newer DDR5 and LPDDR5 technologies. Nanya Technology reported that DDR4 and LPDDR4 together account for nearly 70 percent of its total shipments, with DDR5 and DDR3 making up approximately ten percent.
The company anticipates its full-year shipment volume, measured by capacity, will see a year-over-year increase in the "high teens percentage." Nanya Technology also projects its operations will strengthen further in the third quarter of 2026 and remain stable for several subsequent quarters.
A new fabrication facility is being developed with a 2028 target to achieve a monthly production capacity of 30,000 wafers. The projected total capital expenditure for this new fab, upon reaching its full capacity of 45,000 wafers per month, is estimated at approximately $16 billion.
Overall, the DRAM industry cycle appears to be moderating. Strong demand driven by artificial intelligence is creating structural shifts in memory supply and demand dynamics, with supply tightness expected to persist for multiple quarters. Long-term agreements are also contributing to a market consensus on supply and demand.