Nanya Technology spending $10.7 billion to build DRAM factory in Taiwan

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Nanya Technology spending $10.7 billion to build DRAM factory in Taiwan.
Image: Nanya Technology

Nanya Technology, the world’s fourth-largest memory chip manufacturer, announced plans to establish a $10.7 billion factory in Taiwan.

The corporation intends for the plant to begin volume production of 12-inch silicon wafers in 2024. It will utilize its 10nm fabrication process to create cutting-edge DRAM with applications in the 5G segment.

The chipmaker hopes its new component factory will enable it to become more competitive in the international marketplace.

New Chip Fab Details

Nanya explained it would establish its new site in its home municipality of New Taipei City. Once fully operational, the complex will fabricate around 45,000 wafers every month. It will feature a double-deck clean room outfitted with cutting-edge extreme ultraviolet lithography (EUV) machines.

The construction project represents Nanya’s largest production capacity expansion in a decade.

The corporation said it would fund the project in three phases across seven years. It hopes to break ground on the plant in late 2021, finish its construction in 2023, and start making products in the following year. It expects to create 2,000 new jobs and thousands of additional indirect positions to staff the facility.

Dr. Pei-Ing Lee, Nanya’s president, said the new factory would support the company’s push to become a “key memory provider.”

According to MarketWatch, the global DRAM market will be worth $189.4 billion by 2026, up from $141.9 billion in 2019. If the organization’s forecast holds, Nanya’s new plant will help it capitalize on the segment’s growth.

Memory Manufacturer Production Capacity Expansions

As it happens, Nanya revealed its intention to build a new foundry amid a widespread memory chip provider production capacity expansion.

Samsung, the world’s foremost DRAM provider, is working on a decade-long, $116 billion manufacturing upgrade initiative. The South Korean conglomerate wants to construct a EUV-based fab infrastructure to boost its position within the larger semiconductor industry.

Moreover, it became the first vendor to ship memory modules using the state-of-the-art etching machines in March 2020.

Similarly, SK Hynix, the planet’s second-biggest memory chip manufacturer, won government approval to construct a $106.35 billion fab cluster in Yongin, South Korea, earlier this month. The complex will encompass four factories equipped with EUV equipment and put out 800,000 wafer starts per month.

The electronic parts maker intends to bring the massive DRAM production hub online in 2025.

In addition, Micron Technology, the industry’s third-largest DRAM vendor, is reportedly interested in bolstering its resources through acquisition. The Wall Street Journal reported the American corporation is interested in buying Japanese memory company Kioxia Holdings. Though the transaction would cost an estimated $30 billion, it would significantly enhance Micron’s technology portfolio, production capability, and income.

Samsung, SK Hynix, and Micron have expanded their capacity because DRAM has become more valuable recently.

In the wake of the coronavirus pandemic, workers, consumers, and businesses turned to digital solutions to compensate for extensive lockdown mandates. Consequently, electronic device retailers and data centers have ramped up their memory purchases to facilitate that development. As MarketWatch’s projections show, the component type will become even more sought after as time passes.

By establishing a new fab, Nanya has ensured it will have amble products available to support an increasingly digitalized society. It has also ensured that the DRAM modules will remain competitively priced for the foreseeable future.

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