Storage giant Biwin Storage Technology Co.,Ltd. (688525), with a market value exceeding 100 billion yuan, is accelerating its bets at the crossroads of the memory cycle and technological upgrades, even though its first two project phases have yet to generate mass production revenue. On the evening of September 22, the company announced that it and its controlling subsidiary Guangdong Xincheng Hanqi plan to sign a cooperation agreement with the Dongguan Songshan Lake High-tech Industrial Development Zone Management Committee to build Phase III of a wafer-level advanced packaging and testing manufacturing project, with a total planned investment of approximately 4.5 billion yuan. Of this amount, fixed asset investment totals 4 billion yuan, funded through Guangdong Xincheng Hanqi's own resources and self-raised capital.
Notably, this is not the first time Biwin Storage Technology Co.,Ltd. has made a heavy investment in advanced packaging. According to the announcement, Phase I and Phase II of the wafer-level advanced packaging and testing project, with a planned investment of 3.09 billion yuan, have been completed, with equipment being delivered in batches, corresponding to a monthly production capacity of about 3,000 wafers. Phase I has finished plant construction and equipment installation and commissioning; Phase II equipment is being installed and debugged in stages, currently in the stages of customer sampling, process validation, and small-batch trial production, and has not yet officially generated mass production revenue. In other words, against the backdrop where the first two phases have not yet entered the return period, Biwin Storage Technology Co.,Ltd. has already decided to launch a larger-scale Phase III project.
The company cited the following reasons in its announcement: based on strategic development needs, seizing market development opportunities, enhancing market competitiveness and overall strength; driving breakthroughs in key technologies for semiconductor wafer-level advanced packaging and testing; promoting the industrialization and mass production of multi-chip system-in-package and storage-computing co-packaging technologies; and boosting the security of the semiconductor industry chain and supply chain.
Meanwhile, Biwin Storage Technology Co.,Ltd. has consecutively locked in large upstream supply agreements this year. On the evening of June 9, the company announced that it signed a daily operational procurement contract with a memory manufacturer to purchase enterprise-grade NAND flash particles, with a total committed procurement amount of 1.8608 billion U.S. dollars, locking in both volume and price. The committed procurement period totals 24 months, with the company completing purchases in batches from the third quarter of 2026 to the second quarter of 2028. Combined with the 1.5 billion U.S. dollar order signed in March this year, the company's total large-scale long-term procurement agreements this year have exceeded 3.36 billion U.S. dollars, equivalent to approximately 22.7 billion yuan at current exchange rates.
It is important to note that these two "major orders" are not sales orders but procurement contracts. Their core significance lies in locking in the production capacity and delivery timelines of medium- to long-term memory particles in advance, reducing the risk of supply disruptions caused by market supply-demand fluctuations. The announcement released by Biwin Storage Technology Co.,Ltd. also shows that the 2026 procurement volume accounts for 4.45% of the company's total NAND Flash procurement in 2025, and the 2027 procurement volume accounts for 14.88%. These proportions are relatively small, matching the company's business scale and business plans, with overall risks being manageable.
Industry insiders point out that from the perspective of industry chain logic, Biwin Storage Technology Co.,Ltd. is playing a game of "securing supply plus expanding capacity." Upstream, the company locks in enterprise-grade NAND flash particles through long-term procurement agreements to guarantee the supply of key raw materials; midstream, it is increasing investment in wafer-level advanced packaging and testing to drive the industrialization of multi-chip system-in-package and storage-computing co-packaging. The former addresses the issue of "whether there is material," while the latter addresses "whether it can be packaged and whether mass production can be scaled." Together, they point to supply chain security, delivery guarantees, and enhanced product added value.
The market is more concerned about whether Biwin Storage Technology Co.,Ltd.'s relentless capacity expansion implies overwhelming demand. Judging from the signals in the announcement, Biwin Storage Technology Co.,Ltd. is clearly positioning itself in advance for demand related to enterprise-grade storage, AI-related storage, and advanced packaging. However, it must also be noted that the procurement contracts lock in only a portion of baseline usage, not all demand; and the Phase III project is still in the stage where early investment has not yet yielded returns, running in parallel with customer validation and small-batch trial production. Launching a 4.5 billion yuan investment at this time carries both strategic first-mover intent and uncertainties surrounding the industry cycle and technology roadmap.
"If downstream demand explodes as expected, Biwin Storage Technology Co.,Ltd. is expected to seize the opportunity first with its integrated 'material locking plus packaging and testing' capabilities," said industry analyst Wang Leilei. "But if demand falls short of expectations, the depreciation of new capacity, capital pressure, and customer onboarding risks will also become challenges that must be confronted." Overall, Biwin Storage Technology Co.,Ltd.'s 4.5 billion yuan capacity expansion and 22.7 billion yuan material locking are not a simple case of "expansion driven by orders," but rather an early deployment centered on supply chain security and technological upgrades. What Biwin Storage Technology Co.,Ltd. is betting on is not just the immediate memory demand, but the industrial opportunities in the next round of advanced packaging and storage-computing co-packaging.
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