Nanya Technology Corp Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Charlie Chan - Morgan Stanley - Analyst : Hello, long time no see. Thanks for taking my question. So first of all, I'm wondering whether the recent tariff uncertainty changed the demand outlook versus 1- to 2-months ago. I think 1- to 2-months ago, we were expecting DRAM price to go up in 2Q and bigger increase in second half. So do you see any kind of change of the pricing outlook? And secondly, given the [pull-in] before the tariff, do you see 2Q demand start to decline given the [pull-in] is over?

Question: Charlie Chan - Morgan Stanley - Analyst : Yes, DRAM price in terms of the 2Q DRAM demand?

Question: Charlie Chan - Morgan Stanley - Analyst : Great. So that is very clear. My next question is about your AI opportunity. I think people are developing wafer-on-wafer design. So I'm not sure for

Question: Charlie Chan - Morgan Stanley - Analyst : Yeah, that's great to hear. So looking forward to the new application. And last one, very quick one, if I may. Based on your full year outlook, 30% shipment growth, pricing expectations, your full year depreciation growth, which quarter do you think Nanya Tech can reach a breakeven at the operating level? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 10, 2025 / 7:00AM, 2408.TW - Q1 2025 Nanya Technology Corp Earnings Call

Question: Simon Woo - Bank of America - Analyst : Hi Dr. Lee, thank you very much for today's presentation. My number 1 question is, do you expect sort of rush orders, I mean, the DRAM chip order from the OEM because for the next 90 days, should there be a good chance for your OEM customers to ship their product to the US, ahead of all the tariff implementation? Thank you.

Question: Simon Woo - Bank of America - Analyst : Yeah. Because 90 days delay was just announced last night. So hopefully, you will get more chip orders. But very quickly, sir, do you expect that DDR5 can account for more than 50% or 60% by the end of this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 10, 2025 / 7:00AM, 2408.TW - Q1 2025 Nanya Technology Corp Earnings Call

Question: Simon Woo - Bank of America - Analyst : Nanya Tech, sir, your sales volume or production volume of the DDR5 out of the total demand, when the ratio can show the crossover of more than 50%?

Question: Simon Woo - Bank of America - Analyst : So your annual guidance still 40% of the total DRAM for 2025?

Question: Simon Woo - Bank of America - Analyst : Out of the total sales volume or production basis?

Question: Simon Woo - Bank of America - Analyst : No, I mean 30% means 30% of your --

Question: Simon Woo - Bank of America - Analyst : So just 30% bit growth rather than 30% penetration ratio. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 10, 2025 / 7:00AM, 2408.TW - Q1 2025 Nanya Technology Corp Earnings Call

Question: Simon Woo - Bank of America - Analyst : Bit shipment growth or sorry, out of the total shipments?

Question: Simon Woo - Bank of America - Analyst : Yeah. So 30% bit growth target, I got it. But my question is the percentage of the DDR5 out of the total DRAM their is volume in the 30% as well?

Question: Simon Woo - Bank of America - Analyst : Okay. Yeah. So in Q1, I remember the DDR5 contribution to your total shipment is still low single digit or mid-single digit?

Question: Simon Woo - Bank of America - Analyst : And then one lastly, sir. I know it's a little bit challenging question, but sorry to ask this, but in the OP margin, Q1 was minus 44%. So how to make this one 0% or some positive number, do you think ASP increase will concern or maybe cost reduction could be better?

Question: Simon Woo - Bank of America - Analyst : Very quickly, sir, do you believe the price recovery soon because the spot market price recently recovered well. And then the -- I think the overall -- your competitor is cutting the legacy DRAM production. So do you expect the price recovery soon?