By Faith Hung and Wen-Yee Lee

(Reuters) - Shares of Taiwanese memory chip maker Nanya Technology opened limit-up 10% ‌on Thursday after raising about $2.5 billion in a private placement ‌from SanDisk Technologies and others to expand advanced chip production.

The fundraising comes as chipmakers boost ​production capacity and their customers seek to lock in supplies through tie-ups amid a global memory chip shortage triggered by the artificial intelligence boom. That in turn has tightened supplies to a number of other industries, ‌including smartphones, computers and ⁠automobiles.

Nanya Technology unveiled the $2.5 billion share sales late on Wednesday to SanDisk Technologies, a unit of SanDisk, SK Hynix's ⁠Solidigm unit, Cisco Systems and Kioxia via private placement.

They were buying Nanya shares at T$223.9 per share, slightly below Wednesday's closing price of T$226.5. ​Nanya shares ​surged on Thursday to T$249.

The company ​said the proceeds would be ‌used to invest in factory facilities and production equipment for advanced memory manufacturing.

SanDisk is investing roughly T$31 billion ($969.69 million). The other three firms are investing around T$16 billion each.

Alongside the equity investment, SanDisk said it also entered into a multi-year strategic supply agreement with Nanya under ‌which the Taiwanese firm will supply it ​with DRAM products.

Kioxia also said it had ​entered a long-term DRAM supply ​agreement with Nanya, citing strong growth in its solid-state ‌drive business driven by AI demand ​and the need ​to secure stable DRAM supplies.

The fundraising followed SK Hynix's announcement on Wednesday that it plans to list shares in the U.S. ​later this year, a ‌deal that could raise as much as $14 billion.

($1 = 31.9690 Taiwan ​dollars)

(Reporting by Faith Hung and Wen-Yee Lee; Editing by Christian ​Schmollinger, Miyoung Kim and Thomas Derpinghaus)

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