Sandisk Invests $1 Billion in Nanya for DRAM Supply

Sandisk Technologies, a fully owned subsidiary, purchased 138.685 million Nanya shares at NT$223.9 apiece via private placement, a 15% discount to Nanya’s 30-day average, as reported by the Securities and Exchange Commission. Nanya will channel these funds directly into factory facilities and production gear for advanced memory, addressing the escalating compute needs of next-gen AI.

This move expands Sandisk's supply security playbook, complementing its established flash-memory joint venture with Kioxia, which was extended to 2034. Industry executives, including Broadcom’s Natarajan Ramachandran and Solidigm’s Greg Matson, confirm a tightening memory supply, with customers committing to multi-year deals to secure capacity.

Nanya also revealed private placements to Kioxia (70 million shares) and Solidigm (71.393 million shares) at the same price, strengthening its relationships with multiple strategic partners simultaneously. Nanya reported a significant February revenue surge of 586.7% year-on-year, reaching NT$15.6 billion, aligning with this capital influx.

In market reaction, Sandisk shares slipped 3.5% in U.S. trading, while Nanya’s Taipei-listed shares jumped 4.6%. The deal includes a three-year lock-up for Sandisk’s Nanya stake, and the sector continues to face hazards such as tariffs and mounting expenses, as flagged by Samsung.