Memory chip concept stocks experienced significant movement! Today, in the A-share market, memory chip concept stocks collectively surged, with the sector index rising over 3% at one point. At the time of writing, Qiangyi Co., Ltd. hit the 20% daily limit up, while Yawei Co., Ltd., Woguang Optoelectronics, and Quartz Corp. all hit the 10% daily limit up. Shenkeda and Biwin Storage Technology Co.,Ltd. rose over 12%, Dosilicon Co.,Ltd. and Fuman Micro gained over 10%, and National Chip Technology increased over 9%. On the same day, in the South Korean stock market, memory chip leaders Samsung Electronics and SK Hynix also staged a strong rebound, with intraday gains exceeding 10%. Recently, South Korean media reported that for the first quarter, Samsung Electronics' DRAM price increase has been adjusted upwards from 70% to 100%. Industry estimates suggest that price hikes for SK Hynix and Micron Technology will be similar. Market analysts point out that the sustained sharp rise in DRAM prices is a positive development for the memory chip sector.
DRAM Prices Increase by 100% According to a report by the South Korean media outlet *Etnews*, Samsung Electronics has confirmed a 100% price increase for first-quarter DRAM, which is approximately 30 percentage points higher than the 70% increase negotiated in January of this year. The proliferation of artificial intelligence (AI) has led to explosive growth in memory demand, causing DRAM prices to fluctuate monthly. According to an industry report, Samsung Electronics finalized DRAM supply prices for the first quarter with major clients on March 4th. The average price for general-purpose DRAM used in servers, PCs, and mobile devices increased by approximately 100% compared to the previous quarter, doubling from the fourth quarter of last year; the increase for some specific clients and products even exceeded 100%. The report stated that industry insiders revealed, "Samsung Electronics has completed negotiations for DRAM supply prices. Some overseas clients have already paid deposits, with further adjustments made based on price changes occurring between January and February." In January, Samsung Electronics' DRAM price increase was 70%, while the NAND price increase was about 100%. At that time, this price hike also caused a significant stir within the industry. Despite the substantial increase in memory prices, a queue of clients seeking to purchase has formed. It is reported that some large overseas technology companies have come to South Korea and contacted memory manufacturers like Samsung Electronics to secure supply in advance. Considering supply capacity, Samsung Electronics is continuously negotiating prices with clients. Analysis indicates that even during supply discussions, demand surged, leading to further price increases after January. Typically, supply contracts for memory like DRAM are signed annually. Due to recent supply shortages, memory manufacturers began signing quarterly contracts, but with prices changing rapidly, they are now having to consider monthly contracts. It is understood that Samsung Electronics is not the only company consistently driving up memory prices. The report, citing industry sources, stated that SK Hynix and Micron Technology have also completed negotiations for their first-quarter supply contracts with similar price increases. A pattern of collective price hikes by the three major memory manufacturers has largely taken shape. The expansion of global investment in AI infrastructure is driving this phenomenon. As data center operators deploy AI chips on a large scale, demand for High Bandwidth Memory (HBM), which supports computing power, has sharply increased. Samsung Electronics, SK Hynix, and Micron Technology are all shifting production capacity towards HBM, leading to a noticeable squeeze on the supply of general-purpose DRAM for servers, PCs, and mobile devices.
Amid the backdrop of rising memory prices, the performance of some A-share listed companies has grown substantially. Biwin Storage Technology Co.,Ltd. announced on the evening of March 3rd that, based on preliminary calculations, the company expects to achieve revenue between 40 billion and 45 billion yuan for January-February 2026, a year-on-year increase of 340% to 395%; net profit attributable to shareholders is expected to be between 1.5 billion and 1.8 billion yuan, a year-on-year increase of 921.77% to 1086.13%. Biwin Storage stated that the storage industry is experiencing a high boom cycle in 2026, driven by AI computing power and domestic substitution, which are fueling continuous price increases for RAM/NAND. The industry is facing supply shortages, from which the company is benefiting significantly. Simultaneously, to enhance the market competitiveness of its products in the AI era, the company is continuously increasing investment in areas such as chip design, solutions, advanced packaging and testing, and testing equipment.
Prices Expected to Continue Rising in Second Quarter *ETNews* pointed out that with the continued growth of artificial intelligence, the rise in memory prices is expected to persist for some time. NVIDIA – the world's largest AI semiconductor chip company – reported record-breaking performance on the 25th of last month, countering theories of an AI bubble. Market research firm Gartner predicts that combined prices for DRAM and Solid State Drives (SSDs) will increase by approximately 130% this year compared to the previous year. An industry insider stated, "DRAM and NAND prices will continue to rise in the second quarter. The rate of increase may slow down, but the price hike itself is unavoidable." For downstream clients, the continuous climb in memory procurement costs will further increase the overall cost structure of servers and end-user devices. However, on March 5th, ruling party lawmaker Kim Young-bae of South Korea stated that the chip industry is concerned that a prolonged crisis involving Iran could potentially hinder plans by large tech companies to build AI data centers in the Middle East, thereby dampening strong chip demand. Kim Young-bae also indicated that the chip industry worries the Iran crisis could disrupt the supply of some key chipmaking materials from the Middle East, such as helium. Helium is critical for thermal management in the semiconductor production process and currently has no viable substitute. Kim made these comments after meeting with executives from companies including Samsung Electronics, as well as business and trade groups. South Korean chipmaker SK Hynix stated in a declaration that the company maintains sufficient helium inventory and does not anticipate procurement disruptions. Samsung Electronics declined to comment. Industry insiders noted that as geopolitical tensions in the Middle East have persisted for years, chip manufacturers have diversified their sources of material procurement, and many companies have made advance purchases as a precautionary measure.
Comments