Customers are seeking multi-year supply agreements and potential equity stakes in Nan Ya Technology as AI infrastructure intensifies a wider shortage of memory chips.
Nan Ya Technology, the Taiwanese memory-chip maker, says some customers are now asking not only for longer supply contracts but even for equity participation, as a severe DRAM shortage pushes buyers to secure capacity far into the future. Managing director Li Pei-ying told reporters on 12 October that certain clients have expressed interest in taking a stake in the company to protect future memory supply, while others have asked to extend three-month delivery agreements to three years or more.
According to the company, its long-term agreement coverage currently ranges from about 50% to 70%, with contract periods varying from three months to three years. Discussions over extensions are still under way. Nan Ya Technology has not identified the customers involved, disclosed any investment size, or said whether the proposed shareholdings would come with guaranteed supply, reserved capacity or co-investment terms.
The surge in demand is being driven by artificial intelligence infrastructure. Li said AI computing continues to increase demand across high-bandwidth memory, server networking, storage and system management, all of which require more DRAM. He said revenue linked to AI infrastructure now accounts for more than 20% of Nan Ya Technology’s business. The pressure is not confined to data centres: as supply tightens, smartphone, personal computer and consumer electronics makers are also struggling to secure memory.
Li said some manufacturers are cutting memory configurations, extending the life of existing product lines and, in lower-end devices, even turning to recycled DRAM. Rising prices are adding to the strain, but shortages are also forcing down-stream firms to rethink product specifications and production planning. The broader market remains tight because major suppliers are allocating output through long-term contracts while inventories stay low, leaving conventional applications squeezed out.
The supply crunch may persist for some time. Li said equipment lead times have lengthened by as much as one month to six months, and the problem is not limited to lithography tools but extends across other semiconductor production equipment as well. Even where a new plant is completed, it still needs tool installation, process ramp-up and customer qualification before it can contribute meaningfully to supply. Nan Ya Technology’s new Linkou 5A facility is due to begin equipment installation in the first quarter of 2027, with monthly wafer starts targeted at 30,000 by the end of 2028 and 50,000 by the end of 2030. Li said fourth-quarter DRAM average selling prices still have room to rise, suggesting the imbalance between supply and demand has yet to ease.
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