To all stakeholders:
2024 was a pivotal year for Nanya Technology, marking our shift from technological innovation to value-added growth. The company has been evolving itself into one of the leading role in AI age. Staying committed to our goals, we made steady progress in advancing core DRAM technologies and product R&D. We successfully began mass production of our independently developed 10nm-class process and DDR5 products.
Amid geopolitical and economic uncertainty and a fluctuating DRAM market, we have continued to pursue to our vision of being "The Best DRAM Partner for Smart World." We continued to strengthen our core technologies and advance our sustainability efforts. We also collaborated with strategic partners to drive innovation in edge AI computing. Through high-performance, customized DRAM solutions, we continued to enhance our organizational resilience.
Driving an Efficient Future Through Innovative Technology
Innovation in DRAM technology plays a critical role in shaping the performance of next-generation smart electronics. At Nanya Technology, we have achieved high DRAM process density, plus product specification enhancement, and 3D stacked technology. We are also expanding into diversified product lines and smart manufacturing while pushing for greater technological independence.
In 2024, we successfully launched mass production of our second-generation 10nm-class 8Gb DDR4 and 16Gb DDR5 products. In 2024, Nanya Technology was once again named one of Clarivate's Top 100 Global Innovators. R&D investments accounted for 22.5% of our annual revenue. Domestically, we ranked second in patent filings, and our global patent portfolio surpassed 7,700 patents in total. Having implemented 134 AI applications and generated over NT$400 million in value, Nanya Technology demonstrates its leadership in AI and high-performance computing in the era of smart technology.
Building Resilient Sustainability Amid Climate Challenges
Upholding our commitment to environmental responsibility, Nanya Technology became the first DRAM company to register as an early adopter of the TNFD framework. In 2025, we published our second report on climate- and nature-related financial disclosures, employing the LEAP approach (Locate, Evaluate, Assess, Prepare) to identify nature-related material issues at our operational sites. By integrating the TCFD and TNFD frameworks, we have built a comprehensive process for assessing climate- and nature-related risks.
We have also implemented corresponding management measures to enhance the company's resilience to climate- and nature-related challenges. In 2024, we took concrete steps toward our low-carbon vision. Scope 1 and 2 greenhouse gas emissions were reduced by 12.9% compared to 2020, while Scope 3 emissions per unit of product dropped by 19.4%—well ahead of our original SBT targets. Additionally, our use of renewable energy grew by 43.9% year over year, reaching 35,230 MWh—equivalent to a reduction of 17,000 metric tons of carbon emissions. With regard to water resource management, we recycled a total of 5.59 million metric tons of water over the year, and earned AWS Platinum certification, which reflects our strong performance in sustainable water management.
Building Talent Competitiveness and Strengthening Organizational Momentum
We firmly believe that people are the foundation of innovation. To strengthen human capital development, Nanya Technology launched the Five New Initiatives in 2024, focusing on new independently-developed process technologies, new product development and sales, talent development for new facilities, next-generation management capabilities, and the cultivation of emerging skills. Since 2021, we have trained 1,226 semiconductor professionals—a 40% year-on-year increase. We achieve a 98% retention rate among management trainees, and nearly 30% of positions are filled through internal promotions, creating a healthy cycle of talent development.
Creating and Sharing Value with Our Stakeholders
We actively promote a responsible supply chain and aim to build a more inclusive society. In 2024, Nanya Technology completed traceability assessments for 3TG+C and global critical metals. A total of 255 smelters were certified under the RMI Responsible Minerals Assurance Process or equivalent OECD frameworks. The number of suppliers assessed for information security grew by 164% year over year, reaching 140 companies. In terms of social engagement, our investment grew by 57%, volunteer hours rose by 22%, and participation exceeded 4,000. We also integrated CSR efforts with community revitalization to drive sustainable actions.
Fostering Trust Through Sustainable Governance
In 2024, we were once again selected for the DJSI World Index, achieved dual Leadership Levels in CDP Climate Change and Water Security, and received the TCSA Leadership Awards for Water Resource Management, Social Inclusion, and Information Security. We also maintained our position among the top 5% of the Corporate Governance Evaluation. These achievements reflect the collective efforts of our employees and stakeholders, and affirm our commitment to balancing business performance with ESG development.
Looking Ahead: Driving Sustainable Transformation
As the convergence of global sustainability regulations continues to accelerate, the industry chain is facing rising expectations and greater challenges. Nanya Technology will continue to drive sustainable development through technological innovation, supported by a robust sustainability governance framework focused on carbon reduction, energy efficiency, and resource circulation. We will also deepen our collaboration with the global supply chain to build a sustainable ecosystem that is resilient and forward-looking. Nanya Technology will adhere to its three core strategies: creating shared value, facilitating common good and sustainability, and implementing sustainable enterprise practices. We remain dedicated to developing high-density advanced products, 3D IC stacked technology, and customized high-bandwidth solutions. Together with our global partners, we will build a forward-looking, sustainable ecosystem that is ready for the next era of high-performance computing and green transformation.
