$1 billion investment! SanDisk acquires 139 million shares of Nanya Technology, strengthening its DRAM strategy

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SanDisk is deepening its binding with the key memory chip supply chain through strategic equity investments.

According to Bloomberg, SanDisk’s subsidiary, SanDisk Technology, will purchase about 139 million shares of Nanya Technology via private placement for approximately US$1 billion. As part of the transaction, Nanya Technology will, under a multi-year strategic supply agreement, provide DRAM products to SanDisk Technology. This marks a move from a simple buyer-seller relationship to a deeply strategic partnership.

After the completion of this share acquisition, SanDisk Technology will hold about 3.9% of Nanya Technology’s outstanding ordinary shares, becoming one of its major shareholders. The acquisition price is 15% lower than Nanya Technology’s 30-day average price.

Private Placement at Discount: Securing the Supply Chain

This deal is executed through private placement, with SanDisk Technology acquiring about 139 million shares of Nanya Technology for approximately US$1 billion. The 15% discount reflects the typical pricing logic of private placements—concessions in price in exchange for a one-time lock-in of a large share bloc, and also demonstrates both parties’ mutual endorsement of a long-term cooperative relationship.

Although the 3.9% shareholding does not constitute controlling equity, it is enough to grant SanDisk Technology a place in Nanya Technology’s shareholder structure, providing a more binding strategic foundation for their multi-year supply agreement.

With the equity investment in place, Nanya Technology will continuously supply DRAM products to SanDisk Technology under a multi-year strategic supply arrangement. The supply agreement and equity investment reinforce each other: equity ties enhance the stability and transparency of the partnership, while long-term supply commitments provide SanDisk Technology with more predictable sourcing assurance for memory chips.

For technology companies highly dependent on memory components, securing upstream suppliers through equity investment has become a common strategy to mitigate supply chain risks. This arrangement between SanDisk and Nanya Technology follows this logic.

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