Taiwanese chipmaker Nanya plans $6 billion in spending in 2027, riding AI boom

• Nanya's Q2 2027 revenue reached $2.6 billion (up 684% YoY) with net income of $1.6 billion (up 1,324% YoY), while gross margin swung to 79.5% from negative 20.6%
• The company plans $6.2 billion capex in 2027 as part of a new plant requiring $15 billion total investment, with first phase reaching 30,000 wafers/month capacity by 2028
• Management expects the memory chip supply shortage to persist for several more quarters, with AI-driven structural changes supporting stronger long-term industry outlook

Summary

Key Developments:

Taiwanese memory chipmaker Nanya Technology announced plans to invest over T$200 billion ($6.2 billion) in capital expenditure for 2027, approximately four times its current year spending of T$50 billion. The aggressive expansion aims to support a new manufacturing plant amid surging AI-driven demand for memory chips.

Financial Performance:

Nanya reported exceptional Q2 results with unaudited revenue of T$82.55 billion, up 684% year-over-year. Net income surged 1,324% to T$50.19 billion, while gross margin improved dramatically to 79.5% from negative 20.6% in the prior year period.

Expansion Plans:

The company's new plant requires total investment of approximately T$480 billion at full capacity. Phase one is scheduled to reach 30,000 wafers per month production by 2028, eventually expanding to 45,000 wafers monthly. The capital spending plan awaits board approval.

Market Context:

President Pei-Ing Lee cited AI-driven structural changes supporting a stronger long-term outlook for the memory industry, with supply shortages expected to persist for several quarters. Nanya's customer base includes major tech players: Nvidia, Qualcomm, and Google.

Industry Landscape:

Global memory manufacturers, including Samsung Electronics and SK Hynix, are similarly ramping up investments to meet AI-related memory demand. Lee viewed South Korea's semiconductor expansion efforts positively, noting they reflect confidence in sustained market demand.

Market Implications:

The substantial capital commitment signals strong conviction in continued AI boom momentum and persistent supply-demand imbalances in the memory chip sector through at least 2028.