TAIPEI (Taiwan News) — Adata Technology expects its revenue to continue growing as demand for memory strengthens, driven by expanding AI applications and rising DRAM and NAND flash prices, Economic Daily News reported.
Adata reported April revenue of NT$10.56 billion (US$330 million), up 170% year-on-year and a record high. Its revenue for January to April reached NT$36.67 billion, up 165.4% year-on-year and equivalent to nearly 70% of last year’s full-year revenue.
The company said NAND flash products generated NT$3.22 billion in revenue in April, accounting for 30.5% of total sales, while DRAM products made up 61.2%. NAND flash can retain data without power and is smaller, more power-efficient, and higher in capacity, making it used in smartphones, servers, and automotive processors.
To cope with strong demand, Chair Simon Chen (陳立白) said the company’s memory inventory reached NT$40 billion as of April, helping ensure stable supply through the end of this year.
The company said it buys wafers from upstream suppliers such as Samsung Electronics, Micron Technology, and SK hynix to make memory products. It is also building up inventory to lower costs as memory prices rise.
AI applications are expanding from cloud computing to enterprise and end-user devices, making memory a key resource for AI development. The company expects prices for related memory products to continue rising this year.
Although Chinese competitors continue to boost capacity, the company said the supply gap is unlikely to be filled in the near term and is not expected to push prices lower. It added that there has been no noticeable pressure from customers to cut prices.
The company plans to spend NT$2.59 billion to buy back 4,000 shares by July, which will be transferred to selected employees.
