Nanya Technology Raises 2024 Capital Expenditure to NT$69.7 Billion, Sets Four-Year Cap at NT$346.6 Billion

Nanya Technology (2408-TW) held a board meeting today (5th) and passed key resolutions, announcing an increase in its capital expenditure for the year from the originally planned NT$52 billion to a maximum of NT$69.7 billion. The additional budget will primarily be used to pay prepayments for equipment required for the capacity setup of the new 5A fab.

Nanya Technology added that the 5A fab is planned to have a maximum capacity of approximately 45,000 wafers per month, with total capital expenditure estimated at around USD 16 billion. The facility is scheduled to introduce advanced 10-nanometer-class processes (1B/1C/1D/1E) and EUV technology. The 5A fab is expected to begin wafer input in the second half of 2027, reaching 30,000 wafers per month by 2028 and increasing to 35,900 wafers per month by 2029.

To align with the long-term planning for the first phase of the 5A fab's 35,900 wafers per month capacity, the company has also approved a total capital expenditure budget for 2026 to 2029, capped at NT$346.6 billion, which includes EUV equipment.

Given the increasing complexity of current processes, the board also resolved to authorize the Chairman or CEO to proceed with bidding for a dedicated wafer testing facility within the approved budget, relocating testing capacity to a specialized plant to ensure timeliness. Any confirmed transactions will be announced in accordance with relevant regulations.

Additionally, Nanya Technology's investment in Poding Technology has drawn external attention. The board approved the disposal of 715,000 ordinary shares of Poding Technology at no less than NT$545 per share, transferring part of its holdings to its sponsoring securities firm for GreTai Securities Market (GTSM) listing procedures, with an estimated gain on disposal of NT$360 million. After the transfer, Nanya’s holding will be 20,496,840 ordinary shares, representing approximately 33.96%.

To mitigate foreign exchange fluctuations, Nanya Technology also approved a cash capital increase of USD 2.1 billion for its wholly-owned subsidiary, Nanya Technology International Corporation, to reduce the impact of USD/TWD exchange rate volatility on operations.