On November 10, the memory chip sector showed repeated activity. By the market close, Shenzhen Gongjin Electronics and Intoptek had surged to the daily limit, while Shannon Semiconductor, Puya Semiconductor, Longsys, Ingenic Semiconductor, Deming Microelectronics, and Netac Technology also posted gains.
Reports indicate that SanDisk, a leading NAND flash memory producer, raised contract prices by up to 50% in November. In October 2025, the global memory chip market continued its upward price trend, with major manufacturers like Samsung and SK Hynix announcing Q4 DRAM contract price hikes of up to 30% and NAND flash price increases of 5%–10%.
"This round of price hikes covers all mainstream products and is synchronized globally, fundamentally differing from past cyclical increases," said Yuan Shuai, co-founder of the New Intelligence Productivity Salon. Beyond traditional supply-demand dynamics, the explosive demand for AI has become a critical variable, reshaping the market’s underlying logic.
Since Q3 2025, the memory chip market has experienced a strong rally. Phison Electronics CEO Pan Jiancheng noted during the company’s earnings call that the current AI-driven surge is exceptionally rare—potentially a "once-in-a-lifetime" event.
AI servers demand significantly higher memory capacity and performance than conventional servers. According to Kaiyuan Securities, a single AI server requires about 8x the DRAM and 3x the NAND of traditional servers, with AI accounting for 40% of memory demand in 2025—a share expected to grow further.
Upstream manufacturers have played a pivotal role in this price surge. Industry insiders reveal that Samsung, SK Hynix, and Micron have shifted wafer capacity from DDR4 to higher-margin HBM and DDR5 since 2022, sharply reducing DDR4 supply—with some planning to phase it out entirely.
Amid "daily price fluctuations," major suppliers have reportedly paused quotations, prompting downstream module makers and device manufacturers to stockpile inventory, exacerbating supply tightness.
Over the past decade, the memory industry has undergone three cycles: smartphone-driven (2012–2015), pandemic-fueled PC/server demand (2020–2023), and the current AI/HBM-led cycle (2024–present).
"AI’s impact on memory supply-demand is transformative," Yuan emphasized. "AI model training and inference require massive storage and high-speed data transfer, pushing demand for high-end memory products exponentially while expanding application scenarios."
Price hikes have reached consumer devices. Recent flagship smartphones from OPPO, realme, and vivo saw collective price increases, with Xiaomi’s Redmi K90 series rising by ¥100–400. Xiaomi President Lu Weibing acknowledged upstream cost pressures, offering a limited-time discount to offset consumer concerns.
Market analysts expect further increases. TrendForce forecasts Q4 general DRAM prices (excluding HBM) to rise 8%–13% quarterly, while NAND Flash contracts may grow 5%–10%. Domestic server NAND prices are also projected to climb.
Domestic players like CXMT and JCET stand to benefit from both price recovery and localization trends. Upstream material suppliers such as Jiangfeng Electronics, Dinglong, and Anji Tech are seeing volume-price synergies, while module makers like Netac and Biwin Storage may witness margin recovery.
China Merchants Securities predicts accelerated profit growth in H2 2025, with niche memory chips and supply chain firms gaining from the upcycle. Yuan noted divergent downstream impacts: AI server vendors face squeezed margins but strong demand, while consumer electronics must balance cost-performance trade-offs.
Long-term, this super cycle could accelerate tech upgrades and domestic substitution, offering Chinese memory firms a critical window for breakthroughs and market expansion.