Nanya Technology Shares Soar 10% After $2.5 Billion Fundraising

Shares of Taiwanese memory chip maker Nanya Technology surged 10% on Thursday following a $2.5 billion private placement from investors including SanDisk Technologies, SK Hynix's Solidigm unit, Cisco Systems, and Kioxia. This fundraising aims to expand advanced chip production amidst a global memory chip shortage driven by the AI boom.

The companies purchased Nanya shares at T$223.9 per share, slightly below Wednesday’s closing price of T$226.5. On Thursday, Nanya shares reached T$249.

Proceeds will be used to invest in factory facilities and production equipment for advanced memory manufacturing. SanDisk is investing approximately T$31 billion ($969.69 million), while the other three firms are investing around T$16 billion each.

SanDisk and Kioxia also entered multi-year strategic supply agreements with Nanya to secure DRAM products. These agreements reflect the growing demand for DRAM in the AI-driven market.

This fundraising follows SK Hynix’s announcement to list shares in the U.S., potentially raising up to $14 billion.