Taiwan's Nanya to invest $10.7 billion in advanced EUV DRAM fab to capitalize on AI

Taiwan's Nanya Technology has approved investments of T$346.6 billion (approximately $10.7 billion) to complete construction of its Fab 5A facility and shift to advanced manufacturing processes. The plant, already under construction, is expected to start producing DRAM using EUV lithography in the second half of 2027. At the new fab, the company plans to manufacture 10nm-class memory, including 1C, 1D, and 1E generations, with pilot production of 1C already begun while 1D and 1E are still in development. Capacity will be ramped in stages: to 30,000 wafers per month in 2028 and to 35,900 in 2029, with a projected peak of 45,000 wafers monthly. Total capital expenditure on Fab 5A is estimated at about $16 billion. The adoption of EUV lithography within the 10nm class will allow the company to expand output of more advanced memory types, avoiding duplication of existing nodes. Meanwhile, Nanya is preparing to qualify LPDDR5 chips with customers by the end of this year. Despite a modest global DRAM market share of about 1.6%, Nanya has recently improved financial results due to rising DDR3 and DDR4 prices. According to TrendForce, DDR5 currently accounts for only about 10% of the company's revenue, so Fab 5A should significantly boost its production capabilities in that segment. Additionally, fellow Taiwanese memory maker Winbond has announced plans to double its overall DRAM output on a bit basis.