Taiwanese memory manufacturers posted record profits for Q3, lifted by tight global supplies and rising contract prices. Upstream producers Nanya Technology, Winbond, and Macronix hit historic gross margin highs, while module makers delivered mixed results due to higher raw material costs. Industry executives project DRAM shortages will worsen across the first half of next year as suppliers shift production lines toward artificial intelligence clients.
According to quarterly financial filings from Taipei, upstream chipmakers capitalized on persistent market deficits. Nanya Technology recorded an 85.7% gross margin for Q3, with earnings per share reaching 25.4 New Taiwan dollars. This brought its 9 month cumulative earnings per share to 49.28. Winbond reported a 70.57% gross margin with quarterly earnings per share of 7.58, raising its 9 month total to 15.32. Macronix posted a 70.49% gross margin and earnings per share of 5.52, pushing its 9 month total to 10.34 New Taiwan dollars.
Downstream module makers showed diverging results as consumer demand cooled across mobile phones and personal computers. ADATA maintained strong momentum, generating Q3 earnings per share of 38.69 and pushing its 9 month earnings per share to 101.47. Controller manufacturer Phison posted Q3 earnings per share of 138, lifting its 9 month total to 325.49 New Taiwan dollars.
Transcend and Apacer saw profit margins shrink as older low cost component inventories dried up. Transcend reported gross margins dropping from 77.03% in Q2 to 56.5% in Q3, with earnings per share falling from 27.7 to 16.11 New Taiwan dollars. Apacer saw gross margins slide from 51.25% to 40.08%, with earnings per share dropping to 15.34. Apacer executives confirmed that upstream DRAM suppliers are prioritizing artificial intelligence orders, creating production bottlenecks for consumer hardware. Apacer chose to reserve inventory for next year, taking valuation write downs that lowered Q3 profits. NAND Flash supply conditions remain comparatively balanced, with price swings expected to stay moderate.
