As storage chip prices surge to record highs, a covert battle within the supply chain has quietly commenced.
Approaching the end of the first quarter of 2026, Biwin Storage Technology Co.,Ltd., a leading storage company on the STAR Market with a market capitalization exceeding one hundred billion yuan, has made a significant strategic move. On the evening of March 24, Biwin Storage announced the signing of an ordinary operating procurement contract with a storage wafer manufacturer. The agreement commits Biwin to purchase a specific type of storage wafer from the supplier based on predetermined quantities, prices, and schedules. The total committed procurement value amounts to $1.5 billion (approximately 10.3 billion yuan), with the procurement period spanning 24 months, from the second quarter of 2026 through the first quarter of 2028.
This procurement order, valued at over ten billion yuan, secures wafer supply for the next two years. Amid the current environment of rapidly rising storage prices, the capital market responded positively. On March 25, Biwin Storage's stock price rose, with intraday gains exceeding 12%, pushing its latest market capitalization above 110 billion yuan.
However, this move represents a major strategic gamble for Biwin Storage. The procurement amount is nearly equivalent to its full-year 2025 revenue of 11.302 billion yuan and accounts for over 60% of the company's total assets of 15.521 billion. Furthermore, as of the end of 2025, the company's monetary funds on its books were less than 1.8 billion yuan.
The identity of the "storage wafer manufacturer" remains undisclosed. The announcement stated that due to commercial secrecy, the counterparty's information is exempt from disclosure, referring to it only as "a storage wafer manufacturer." In the semiconductor storage industry chain, "storage wafer manufacturers" typically refer to IDM companies that control core wafer manufacturing processes. In contrast, storage module manufacturers like Biwin Storage, Jiangbolong, and Demingli operate in the middle of the chain, primarily purchasing storage chips from upstream wafer manufacturers and processing them into products like SSDs and memory modules for downstream clients.
Global storage wafer production capacity is highly concentrated, primarily controlled by manufacturers such as Samsung, SK Hynix, Micron, Kioxia, Western Digital, Yangtze Memory Technologies, and ChangXin Memory Technologies. Among these, Samsung, SK Hynix, and Micron collectively hold over 90% of the market share. Biwin Storage has noted in its annual reports that global wafer capacity is concentrated among these players, who typically establish direct, long-term contracts only with key clients. Through years of collaboration, Biwin has built stable, long-term relationships with major storage wafer manufacturers and distributors, securing long-term agreements for NAND and DRAM wafers.
This substantial procurement commitment is driven by the AI wave propelling the storage industry into a new "super cycle." Since the second half of 2025, the global storage market has undergone a dramatic shift, moving from a phase of oversupply to severe supply-demand imbalance. The explosive growth in AI computing demand is the core engine of this industry upswing.
Soaring prices vividly illustrate the market dynamics. On February 28, the Price Monitoring Center of China's National Development and Reform Commission stated that since September 2025, the global memory market shortage has widened, with storage chip prices continuing to climb, and the rate of increase accelerating over the past month. It advised monitoring the impact of storage chip prices on downstream sectors.
Disclosed data shows that as of January this year, prices for both major storage products, DRAM and NAND Flash, reached their highest levels since records began in 2016. For example, the average contract price for mainstream DRAM increased by approximately 24% month-over-month and about 83% since September 2025. The average contract price for mainstream NAND Flash surged about 65% month-over-month and nearly 150% since September 2025.
Citing TrendForce data in its annual report, Biwin Storage indicated that driven by the accelerated adoption of AI applications and growing demand for computing and data center infrastructure, the global storage market experienced robust growth in 2025, reaching $235.4 billion, a 45.7% year-on-year increase. TrendForce projects that due to limited capacity and strong demand, storage prices will continue rising, with the global storage market size expected to reach $551.6 billion in 2026 and further grow to $842.7 billion in 2027. The compound annual growth rate from 2025 to 2027 is estimated at 89.2%.
Amid this price surge, Biwin Storage's performance has exploded. The company's 2025 annual report shows revenue of 11.302 billion yuan, a 68.82% year-on-year increase, and net profit attributable to shareholders of 853 million yuan, a staggering 429.07% increase. More notably, its performance forecast for January-February 2026 anticipates revenue between 4 billion and 4.5 billion yuan, a surge of 340% to 395% year-on-year. Net profit attributable to shareholders is projected to be between 1.5 billion and 1.8 billion yuan, a dramatic increase of 921.77% to 1086.13% year-on-year. This contrasts sharply with a net loss of 183 million yuan in the same period of 2025.
The company attributes this performance to the recovery in the storage industry cycle, AI-driven demand boosting DRAM/NAND prices, accelerated domestic substitution, increased product shipments, improved毛利率, and significant operating leverage effects.
Founded in 2010 and listed on the STAR Market in December 2022, Biwin Storage primarily engages in the R&D, packaging, testing, production, and sales of semiconductor storage media. Its products and services cover embedded storage, consumer-grade storage, industrial-grade storage, and advanced packaging and testing services.
Historically, Biwin's post-IPO performance has been volatile. Its first annual report after listing was disappointing, with net profit falling sharply. The following year, it swung to a net loss. The company returned to profitability in 2024, and net profit soared in 2025.
However, alongside this rapid earnings growth, financial pressure has emerged. The 2025 annual report shows net cash flow from operating activities was negative 1.965 billion yuan, a significant turn from positive 532 million yuan a year earlier. This starkly contrasts with the net profit of 853 million yuan, indicating that while the company is profitable on paper, its actual cash flow situation is strained.
Biwin attributed the sharp decrease in operating cash flow primarily to increased procurement expenditures. In essence, during a period of rising storage chip prices, module manufacturers must build inventory to lock in costs, leading to a rapid increase in inventory levels. Biwin's inventory book value surged from 3.537 billion yuan in 2024 to 7.868 billion yuan in 2025, accounting for over 50% of total assets. Concurrently, its asset-liability ratio stood at approximately 65% at the end of 2025, with current liabilities exceeding 7 billion yuan.
Industry observers suggest that for storage module manufacturers, an industry upcycle presents a golden window for profits but also a severe test of financial resilience. Clearly, striking a balance between expansion and financial stability will be a critical challenge for Biwin Storage moving forward.
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