Nanya Technology recorded a sharp increase in second-quarter revenue and profitability as higher DRAM selling prices offset flat shipment volumes.
Quarterly revenue reached TWD NT$82.55 billion, up 68.2% from TWD NT$49.09 billion in the first quarter. Average selling prices increased by more than 60% during the period, while bit shipments remained broadly unchanged.
The Taiwanese memory manufacturer reported gross profit of TWD NT$65.62 billion. Gross margin rose to 79.5%, an improvement of 11.6 percentage points from 67.9% in the previous quarter.
Profit growth
Operating income reached TWD NT$60.83 billion, more than double the TWD NT$30.11 billion recorded in the first quarter. Operating margin increased by 12.4 percentage points to 73.7%.
Earnings before interest, tax, depreciation and amortisation were TWD NT$63.79 billion. The associated margin increased to 77.3%, compared with 67.2% in the preceding quarter.
Nanya generated non-operating income of TWD NT$1.50 billion and recorded an income tax expense of TWD NT$12.14 billion.
Net income reached TWD NT$50.19 billion, representing a 92.6% quarterly increase. Net margin rose to 60.8% from 53.1% in the first quarter.
Earnings per share were TWD NT$14.66, based on 3.42 billion weighted average outstanding shares. This compared with TWD NT$8.41 in the previous quarter.
For the first half of 2026, Nanya reported net income of TWD NT$76.25 billion. Earnings per share for the six-month period reached TWD NT$23.38.
Book value per share stood at TWD NT$93.49 at the end of the quarter, based on 3.45 billion outstanding shares.
Yearly shift
The quarterly figures represented a significant change from the same period a year earlier.
Revenue increased 684.2% from TWD NT$10.53 billion in the second quarter of 2025. The company had reported a gross loss of TWD NT$2.17 billion and a gross margin of negative 20.6% during that earlier period.
Operating results also moved into profit from an operating loss of TWD NT$4.50 billion a year ago. Net income compared with a prior-year net loss of TWD NT$4.10 billion.
The company attributed the latest revenue increase mainly to the rise in average selling prices. The flat shipment result indicates that pricing, rather than volume expansion, was the primary driver of quarterly growth.
AI demand
AI infrastructure and server applications accounted for more than 20% of Nanya's revenue during the first half of the year.
The company is expanding its portfolio across several generations of dynamic random-access memory. Its current range includes DDR5, LPDDR5 and LPDDR5X products, alongside DDR4 and LPDDR4 variants.
Nanya also continues to supply older memory formats, including DDR3 and LPDDR3, to serve devices and industrial systems that rely on established hardware platforms.
The company plans to support customised memory development for AI and wide-I/O applications. It is also targeting products used in servers and other AI infrastructure systems.
Demand linked to artificial intelligence has reshaped the memory market as chipmakers direct more capacity and investment towards higher-value server products. Nanya's results show that AI and server applications have become a material part of its revenue mix, while conventional consumer and low-power memory products remain part of its broader portfolio.
Fab expansion
Nanya is progressing with the development of its new fabrication plant and its next generation of manufacturing processes.
The first phase of the facility is planned to reach 30,000 wafer starts per month by 2028. The full project is designed for capacity of 45,000 wafer starts per month.
The company is developing its 1C, 1D and 1E technology nodes. It is also building extreme ultraviolet lithography capabilities for future production processes.
Nanya estimated total capital expenditure of TWD NT$480 billion to complete the plant at its planned full capacity of 45,000 wafer starts per month.