Afternoon Storage Chip Movement Pulls Up; Bairiwei Storage Rises Over 10%; Institutions: Supply-Demand Imbalance in Storage Chips Expected to Continue in Second Half

(Source: Caixin)

This imbalance could lead to further price fluctuations, impacting downstream industries that rely on DRAM and NAND.

On March 16th, the storage chip sector saw a rapid surge in the afternoon. As of the time of writing, Shengshi Technology (002990.SZ), Yingxin Development (Rights Protected) (000620.SZ), Langke Technology (300042.SZ), among others, hit the daily limit. Huahong Company (688347.SH), Beijing Junzheng (300223.SZ), Lianyun Technology (688449.SH), Baiwei Storage (688525.SH), and others also rose in tandem.

According to reports, Omdia stated on the same day that the supply and demand imbalance in the storage chip market is expected to persist into the second half of 2026, with production growth lagging behind demand. Suppliers face the challenge of expanding production while controlling costs and maintaining profitability. This imbalance could cause further price volatility, affecting downstream industries dependent on DRAM and NAND.

Additionally, the storage industry is expected to enter a high-growth cycle in 2026. Driven by explosive demand for AI computing power and domestic substitution, the supply and demand for DRAM and NAND flash memory remain tight, with prices rising sharply. As of January 2026, the prices of the two major storage chips reached new highs not seen since 2016: mainstream DDR4 8Gb DRAM contract prices at $11.50, up 24% month-over-month and 83% compared to September 2025; 128Gb NAND flash contract prices at $9.50, up 65% month-over-month and nearly 1.5 times higher than September 2025. Driven by AI chip and HBM memory demand, Asian semiconductor giants are expected to increase capital expenditure beyond $136 billion in 2026, with TSMC, Samsung, and SK Hynix leading. TSMC is ramping up advanced process manufacturing, while Samsung and Hynix are focusing on HBM, directly boosting demand across equipment and advanced packaging supply chains.

China Galaxy believes that, in the context of the external environment, supply chain security and independent controllability remain long-term trends. Equipment and materials are the most critical under the top-level design of domestic substitution, with digital chips being the core carriers of autonomous computing power. Advanced packaging and testing benefit from technological upgrades.