Four Giants Subscribe As Memory Manufacturer Confirms TWD 78.718 Billion Private Placement For Capacity Expansion

On March 25, Nanya Technology disclosed the subscriber list for its private placement totaling TWD 78.718 billion (approximately RMB 17.004 billion), with several industry leaders participating. Kioxia, SanDisk, Solidigm (a subsidiary of SK Hynix) and Cisco agreed to subscribe for 70.00 million, 138.68 million, 71.39 million and 71.50 million ordinary shares respectively, representing a combined 351.57 million shares. The private placement price was set at TWD 223.9 per share, which, against the closing price of TWD 226.5 on the same day, implies a discount of only 1.15 percent.

Nanya Technology intends to allocate the proceeds to advanced memory fabrication facilities and production equipment to address the anticipated rise in demand from AI computing. As a member of the Formosa Plastics Group, Nanya Technology focuses on DRAM research, design, manufacturing and sales, offering product lines that include DDR4, DDR5 and low‑power memory.

The current funding round follows a period in which AI‑driven demand for HBM prompted major suppliers such as Samsung, SK Hynix and Micron to reassign capacity to HBM production, creating supply gaps for general‑purpose and niche memory products. That reallocation has lifted order volumes for manufacturers including Nanya Technology, and sharp DDR4 price increases have supported notably strong financial performance. Industry observers note that even though SK Hynix manufactures its own DRAM, the rapid expansion of SSD demand has materially increased DRAM requirements; to secure supply, customers are signing long‑term purchase agreements and taking equity stakes to reinforce supply relationships.

Earlier reports indicated that some memory supply contracts have been negotiated through 2030 and that suppliers in these arrangements include Nanya Technology and Winbond. Supply‑chain sources described the long‑term agreements as typically “volume‑locked, price‑unlocked,” with terms extended from one year to at least two years and certain large customers discussing frameworks approaching 2030.

In a March 25 research note, Guosheng Securities argued that the era of AI‑driven memory demand has arrived and that the current memory cycle has moved beyond previous periodic patterns into a growth phase shaped by artificial intelligence. Under conditions of tight supply, module manufacturers that secure stable, high‑quality chip supply are positioned to benefit from a combination of storage upgrades, price appreciation and domestic substitution. The report emphasized that the memory sector offers both earnings visibility and a long‑term investment thesis rooted in AI and localization, supporting expectations for continued price‑up cycles and significant upside in valuations.