Market attention is fixed on a storage module leader with a hundred-billion-yuan market cap after it suddenly announced a massive investment to expand into the advanced packaging and testing sector.
On September 22, Biwin Storage Technology announced that the company, together with its controlled subsidiary Guangdong Xincheng Hanqi, plans to invest 4.5 billion yuan in the third phase of a wafer-level advanced packaging and testing manufacturing project in Dongguan Songshan Lake, of which fixed asset investment will reach 4 billion yuan, funded by self-owned funds and self-raised funds.
The 4.5 billion yuan addition to advanced packaging and testing has drawn enormous market attention. Looking back at the company's development, this is not the first time Biwin Storage Technology has increased its bet on advanced packaging and testing. As early as 2023, the first and second phases of the project were launched, with a combined investment of 3.09 billion yuan and a planned monthly capacity of 3,000 wafers. At present, the first phase has completed plant construction and equipment commissioning, while the second phase is in the stage of customer sampling, process verification and small-batch trial production, and has not yet officially generated mass production revenue. Rapidly advancing the third phase before the earlier projects have delivered returns reflects the urgent desire of Biwin Storage Technology to break through toward the upstream of the industrial chain. Heavy investment in the packaging and testing track — can this hundred-billion-yuan storage leader use advanced packaging to break the shackles of industry cycles and build its own core barriers?
A storage leader with a hundred-billion-yuan market cap accelerates its layout in the advanced packaging track
In 1995, Sun Rixin resigned from the computer research institute of the First Railway Survey and Design Institute and went into business, founding the BIWIN trading company in Shenzhen, engaging in the trade of mechanical hard drives and floppy disks, and earning his first pot of gold. In 2000, BIWIN began to enter the storage OEM market, successively reaching cooperation with overseas storage companies such as Intel and Micron to produce storage products for them. However, Sun Rixin and Biwin Storage Technology were not satisfied with merely doing trade and contract manufacturing. Around 2012, they began to enter the consumer storage product market under the independent brand BIWIN. In recent years, as the AI wave drove storage demand to surge and storage prices climbed rapidly, Biwin Storage Technology's performance emerged from a trough and exploded. From the data, Biwin Storage Technology once lost 624 million yuan in 2023, turned a profit in 2024 with a net profit attributable to shareholders of 161 million yuan, and in 2025 the net profit attributable to shareholders rose to 853 million yuan. In the first half of 2026 alone, Biwin Storage Technology's net profit attributable to shareholders reached 7.166 billion yuan, a year-on-year surge of 3,273.48%. Strong performance drove the stock price sharply higher. On June 30, 2025, Biwin Storage Technology's closing market value was 31.089 billion yuan. One year later, on June 30, 2026, its total closing market value reached 233.298 billion yuan, making it one of the A-share storage leaders. However, alongside the surge in performance and stock price, the market holds divergent expectations for Biwin Storage Technology's future growth. As a typical storage module company, Biwin Storage Technology needs to purchase storage dies from storage leaders such as Samsung, SK Hynix and Micron, while also purchasing storage controller chips from Silicon Motion Technology, Maxio Technology, InnoGrit and others, and substrates and PCBs from Shennan Circuits, Victory Giant Technology and others, handling the packaging, testing and module manufacturing itself, turning raw materials into semiconductor memory and selling to downstream customers. The technical barrier in this segment is not particularly high, and the performance surge is mostly due to the upcycle of the storage industry. In fact, since July this year, Biwin Storage Technology's stock price has fallen sharply. As of the close on September 24, its latest market value was 100.616 billion yuan, a shrinkage of over 100 billion yuan from its peak market value. During the same period, the stock prices of storage giants such as Samsung also pulled back, but Micron's cumulative decline was less than 10%, Samsung's stock price fell about 15%, and SK Hynix dropped about 30%, all significantly smaller than module companies such as Biwin Storage Technology. Under such circumstances, Biwin Storage Technology chose to accelerate its upstream integration layout to build differentiated competitive advantages and strengthen competitive barriers. On one hand, similar to other storage module companies, Biwin Storage Technology is stepping up in-house development of storage controller chips. Its first domestically developed eMMC controller (SP1800) has been successfully mass-produced and delivered to customers in batches, and it is also developing an in-house UFS controller chip. On the other hand, Biwin Storage Technology has begun to strengthen its own packaging and testing business layout, attempting to achieve greater breakthroughs in this field. As early as 2009, under the impact of the financial crisis, when other storage companies were scaling back their businesses, Sun Rixin decided to build a packaging and testing plant to further control product quality. After more than a decade of development, Biwin Storage Technology's packaging and testing business not only serves its own capacity but has also begun to take on external business. In 2025, Biwin Storage Technology's advanced packaging and testing business revenue was 170 million yuan, up 58.25% year on year. The gross margin reached 37.70%, noticeably higher than the gross margin of the memory business. At the same time, the advanced packaging technologies that Biwin Storage Technology is deploying are not only applicable to the storage business but are also expanding into other semiconductor fields. This also means that scaling up this business will help Biwin Storage Technology smooth out storage cycle fluctuations and achieve steady growth. In recent years, as the importance of advanced packaging has become more prominent, Biwin Storage Technology's packaging and testing business has begun to carry a greater strategic mission. This latest increase in packaging and testing capacity is a key move by Biwin Storage Technology to accelerate the building of differentiated competitive barriers.
Advanced packaging becomes the decisive factor in storage — can Biwin Storage Technology secure its position?
In recent years, as AI places more stringent demands on storage bandwidth, power consumption and size, the importance of advanced packaging for storage products has become increasingly prominent. For example, the HBM4 or HBM4E (fourth-generation high bandwidth memory standard) chips carried by Nvidia's next-generation Rubin Ultra AI accelerator stack up to 16 layers through through-silicon via stacking, greatly increasing bandwidth, while adopting large-scale reflow soldering combined with molded underfill packaging to improve production efficiency, making HBM the hottest storage product today. As large models evolve toward trillions of parameters, relying solely on HBM capacity scaling is gradually failing to meet development needs, so storage manufacturers have begun to accelerate research and development of HBF (high bandwidth flash) products, which require the introduction of 2.5D/3D stacking technology centered on hybrid bonding and other techniques. This also means that advanced packaging will continue to play a vital role in future high-performance storage and AI storage. Biwin Storage Technology, which is accelerating its advanced packaging layout at this time, is targeting exactly this potential track. At present, Biwin Storage Technology's packaging and testing layout is divided into two parts. One part is undertaken by its subsidiary Talent Technology, which serves as an advanced packaging and testing and memory manufacturing base, specializing in memory packaging and testing and SiP packaging and testing, currently mainly serving the parent company's packaging and testing needs, with part of its capacity serving strategic customer needs. The other part is undertaken by its subsidiary Guangdong Xincheng Hanqi, which strategically deploys the core business of wafer-level advanced packaging and testing. The third phase of the wafer-level advanced packaging and testing manufacturing project, with a total investment of 4.5 billion yuan, as well as the previous first and second phases, are operated by Guangdong Xincheng Hanqi as the operating entity. The announcement shows that Guangdong Xincheng Hanqi has built a range of advanced packaging technologies covering 2.5D, RDL, Fan-in, Fan-out and others. In its 2026 semi-annual report, Biwin Storage Technology stated that Guangdong Xincheng Hanqi currently mainly plans three major advanced packaging product lines, covering the three core areas of AI hardware infrastructure: storage, computing and transport. "Storage" refers to the FOMS (fan-out memory stacking) series for advanced memory chips, meeting large-capacity, high-density storage needs; "computing" refers to the CMC (compute-memory chiplet) series focused on computing and storage integration, adapting to the trend of compute-memory co-packaging; and "transport" refers to the OEC (optoelectronic co-packaging) series focused on high-speed signal transmission, matching the application needs of ultra-high-speed interconnection. From the current perspective, Biwin Storage Technology's packaging and testing business layout has clear differentiated competitive advantages. Compared with third-party packaging and testing leaders such as JCET, Tianshui Huatian Technology and Tongfu Microelectronics, Biwin Storage Technology has deep technical accumulation in the storage field. Its subsidiary Talent Technology currently masters mass production capabilities for advanced processes such as 16/32-layer die stacking, 30μm~40μm ultra-thin dies and multi-chip heterogeneous integration, reaching internationally first-class levels. Based on its accumulation in storage packaging technology, Guangdong Xincheng Hanqi has leading advantages in storage, compute-memory integration and related fields. However, it should be noted that advanced packaging is a typically scale-economy business in the semiconductor industry, with high investment thresholds. The larger the capacity, the faster unit costs can be amortized. At present, the advanced packaging market is highly concentrated and has formed a scale-economy cycle of "technology leadership — capacity expansion — share increase — increased investment — technology leadership — capacity expansion." This also means that Biwin Storage Technology, as a new player, will face severe pressure, and whether it can stand firm in segmented markets through its storage technology advantages still needs to be verified. On the other hand, in the storage packaging and testing market, Biwin Storage Technology also faces certain competition. For example, the second phase and second stage construction project of the Huatian Nanjing integrated circuit advanced packaging and testing industrial base, launched by Tianshui Huatian Technology in May this year, mainly focuses on storage integrated circuit packaging and testing, with a total investment of 3 billion yuan. In addition, Shenzhen Kaifa Technology also expanded production twice in succession in May and September this year, further increasing its storage packaging and testing business through Peiton Technology. At present, Biwin Storage Technology's increased investment in the packaging and testing business is conducive to smoothing storage cycle fluctuations while expanding upstream integration in the industrial chain to build differentiated barriers. But objectively speaking, the company's packaging and testing business is currently small in overall scale, and it still needs to overcome multiple practical difficulties such as customer development, continuous process iteration, capacity ramp-up and cost control. Whether this storage module leader with a hundred-billion-yuan market cap can achieve a breakthrough by relying on its advanced packaging and testing business remains to be verified over time.
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