On September 29, memory concept stocks continued their active performance. Shannon Semiconductor Technology Co.,Ltd. (300475.SZ), a core distributor for SK Hynix, and Shenzhen Techwinsemi Technology Co.,Ltd. (001309.SZ), a domestic SSD (Solid State Disk) solution provider, both surged over 8%. Biwin Storage Technology Co.,Ltd. (688525.SH) and Shenzhen Longsys Electronics Co.,Ltd. (301308.SZ) followed with gains.

On the news front, global memory chip manufacturers have recently initiated successive "price increase waves." According to reports, in early September, SanDisk announced price increases of over 10% for products across all channels and consumer customers, with other memory manufacturers following suit. Sources indicate that Samsung Electronics raised memory product prices by 30%, while Micron Technology notified customers of price increases ranging from 20% to 30%. When inquired about these pricing adjustments on September 29, Samsung had not responded by press time.

It has been learned that cost pressures from rising memory prices are gradually transmitting to downstream sectors. Major memory module manufacturer ADATA recently announced that starting today (29th), it would cease DDR4 (fourth-generation double data rate synchronous dynamic random access memory) quotations, with DDR5 (fifth-generation double data rate synchronous dynamic random access memory) and NAND flash prioritized for major customers. Among terminal manufacturers, XIAOMI-WR (01810.HK)'s second-quarter financial report released in mid-August showed smartphone gross margins declining from 12.1% in the same period last year to 11.5% in the quarter. XIAOMI-WR President Lu Weibing stated directly during the earnings call that this year's overall memory market price increases have been much higher than expected.

**Price Rally Continues to Heat Up**

DDR4, as fourth-generation double data rate synchronous dynamic random access memory, remains widely used in PC (personal computer), server, and consumer electronics markets, with single-chip capacity reaching 16GB. The market's new-generation DDR5 offers single-chip capacity up to 64GB, along with faster speeds, higher bandwidth, and lower power consumption.

In fact, as early as the third quarter of last year, profit-focused manufacturers like Samsung, SK Hynix, and Micron began reducing some lower-margin traditional DRAM capacity, shifting to produce higher-profit products like DDR5 and HBM. In April this year, overseas manufacturers successively announced discontinuation of older-generation DRAM products including DDR4 and LPDDR4X (Low Power Double Data Rate 4X memory, the mobile version of DDR4), further intensifying supply constraints and ushering in comprehensive price increases across the DRAM market. According to data disclosed by CFM Flash Memory Market on September 10, DRAM price indices have risen approximately 72% in less than half a year, with the organization predicting the price rally will continue through year-end.

Additionally, surging demand for high bandwidth memory (HBM) driven by AI has become a key factor pushing prices higher. Major DRAM manufacturers have pivoted toward the AI track, prioritizing supply of latest products to NVIDIA, AMD, and other AI accelerator companies. This priority adjustment has resulted in even tighter consumer-grade DRAM supply.

The chain reaction from manufacturers discontinuing some DDR4 and LPDDR4X products combined with AI demand continues to ferment, with market bullish sentiment rapidly heating up.

Regarding the sustainability of storage industry price increases, Biwin Storage Technology Co.,Ltd. responded on its investor relations platform that current storage prices continue rising, combined with traditional peak season stocking momentum and robust demand from emerging applications like AI glasses. From the current perspective, prosperity levels will continue. The company will implement flexible and proactive stocking strategies based on market supply-demand conditions.

In mid-September, Shenzhen Techwinsemi Technology Co.,Ltd. also stated in investor relations activity records that storage prices are influenced by multiple factors including supply-demand structural changes, capacity shifts, and emerging demand growth. Domestic and international leading technology companies are significantly increasing capital expenditure for AI investments, with computing infrastructure construction continuously expanding. Growing storage demand from servers and data centers continues boosting industry prosperity, with fourth-quarter storage prices expected to maintain upward trends.

Regarding inventory strategy adjustments, Shenzhen Techwinsemi Technology Co.,Ltd. stated: "Inventory is dynamically adjusted by the supply chain delivery center based on front-end business feedback, combined with market prices, forward-looking industry prosperity judgments, and strategic customer large-scale delivery needs. Additionally, due to business structure changes, the company has also increased procurement of enterprise-grade particles, premium flash memory particles, and other raw materials."

**Smartphone and PC Manufacturers Under Pressure**

Currently, DDR4 particle price increases have exceeded reasonable market ranges. TrendForce indicates that consumer-facing DDR4 prices nearly doubled in the third quarter. To prevent supply disruptions, terminal brand manufacturers have strengthened smartphone LPDDR4X stocking, with fourth-quarter LPDDR4X prices expected to rise over 10%. DDR5 prices are also expected to maintain increases, including DRAM products for PCs.

"This year's price increases for mid-to-low-end memory have exceeded expectations. From the overall market perspective, DDR4 remains absolutely mainstream," said Tan Ruitao, head of Realme GT series and Neo series product lines, recently to media representatives. To address DDR4 price volatility, Tan stated: "On one hand, we smooth prices through introducing more suppliers (including domestic manufacturers) and increasing first-half inventory; on the other hand, we plan gradual DDR5 transition, but this requires iterative processes matching with processors."

On the PC side, conditions are equally severe. CFM Flash Memory Market points out that recent PC customer stocking demand has notably warmed, but industry manufacturers generally control inventory and withhold sales, intentionally controlling shipment pace. Additionally, the industry market has generally suspended order-taking.

Furthermore, an important structural change is occurring. As DDR4 prices rapidly increase, the price gap between DDR4 and DDR5 continues narrowing, which will drive application terminals toward DDR5 product migration. "The transition from DDR4 to DDR5 represents the trend of industry storage technology upgrades in the second half of this year," Tan Ruitao noted.