Nanya Tech announces up to $10.7 billion Fab 5A investment plan through 2029 targeting 10nm-class AI DRAM with EUV
Taiwan's DRAM maker Nanya Technology is embarking on a major long-term investment to advance its memory manufacturing capabilities. The company has unveiled a long-term investment plan for its Fab 5A, with cumulative investment for 2026 through 2029 capped at NT$346.6 billion, approximately US$10.7 billion. This is widely described as Nanya's largest investment to date and the largest single investment by Taiwan's DRAM industry in nearly two decades. The project will introduce 10nm-class 1b, 1c, 1d, and 1e processes, along with extreme ultraviolet (EUV) lithography equipment.
To accelerate the initiative, Nanya has significantly increased its 2026 capital expenditure budget from NT$52.0 billion to NT$69.7 billion—an increase of NT$17.7 billion, or approximately 34 percent. The additional budget will primarily fund advance payments for equipment required to build Fab 5A, ensuring the project remains on schedule.
The expansion follows an aggressive production roadmap. Wafer production at Fab 5A is scheduled to begin in the second half of 2027, ramping to 30,000 wafers per month in 2028 and 35,900 wafers in 2029, with further expansion planned based on market demand. Fab 5A's maximum planned capacity is approximately 45,000 wafers per month, with total investment estimated at around US$16 billion, to be deployed in phases according to demand.
The investment reflects accelerating demand for AI infrastructure. At its most recent earnings call, Nanya reported that AI infrastructure and server-related products accounted for more than 20 percent of first-half 2026 revenue. The portfolio includes server DRAM, enterprise SSDs, network interface cards (NICs), and baseboard management controllers (BMCs), with major customers including NVIDIA, Google, Microsoft, Qualcomm, Intel, and AMD. Long-term agreements now cover approximately 50 percent of production capacity, with the company gradually converting additional short-term contracts to LTAs to align future capacity with customer requirements.
Nanya has advanced its manufacturing roadmap accordingly. The company has begun pilot production of its 1c process, while its 1d process is under development and expected to enter pilot production soon. DDR5 currently represents around 10 percent of revenue, with LPDDR5 scheduled to begin customer qualification in the second half of 2026.
Financial results underscore the momentum. Nanya reported July revenue of NT$43.87 billion, up 49.3 percent month over month and 719.6 percent year over year, reaching another monthly record high. The surge was driven by continued DRAM price increases, particularly a sharp rise in DDR4 contract prices. In the first quarter of 2026, Nanya ranked fourth among global DRAM suppliers with a 1.6 percent market share. Quarterly revenue reached US$1.55 billion, up 60 percent from the prior quarter, as the company benefited from reduced inventory and elevated DDR4 and DDR3 contract pricing. Nanya, along with fellow Taiwan-based suppliers Winbond and PSMC, continues to focus on mature-node DRAM products, filling market gaps as the top three memory makers shift toward more advanced processes.