Memory Market Booming, Domestic Storage Industry Accelerates Development

Securities Daily Reporter Ding Rong

The global memory market has entered a “super cycle,” and industry company performance is under close watch. On March 4th, Shenzhen Baiwei Storage Technology Co., Ltd. (hereinafter “Baiwei Storage”) voluntarily disclosed a performance forecast for January to February 2026. The company expects its net profit attributable to the parent company for these two months to surpass the total for the entire previous year, showcasing a strong “report card.”

Fu Yifu, a special researcher at Su Shang Bank, told Securities Daily: “Baiwei Storage’s outstanding performance not only confirms that the storage industry is in a high boom period but also reflects the rapid development of domestic storage companies in technology breakthroughs, capacity expansion, and market expansion. This is a direct sign of the improving competitiveness of China’s storage industry.”

Gaining Benefits from the Upward Cycle

According to Baiwei Storage’s announcement, preliminary calculations by the company’s finance department estimate that from January to February 2026, revenue will reach 4 billion to 4.5 billion yuan, an increase of 3.091 billion to 3.591 billion yuan compared to the same period last year, representing a year-on-year growth of 340% to 395%. Net profit attributable to the parent company is expected to be 1.5 billion to 1.8 billion yuan, an increase of 1.683 billion to 1.983 billion yuan from the same period last year, turning losses into profits. Based on Baiwei Storage’s 2025 annual performance report, the company expects to achieve a net profit attributable to the parent of 867 million yuan for the full year.

Regarding the reasons for the performance growth, Baiwei Storage stated: “In 2026, the storage industry is entering a high boom cycle. Driven by AI computing power and domestic substitution, prices for DRAM (Dynamic Random Access Memory) and NAND (Flash Memory) continue to rise, with industry supply unable to meet demand, benefiting the company significantly. Meanwhile, to enhance the market competitiveness of its products in the AI era, the company continues to increase investments in chip design, solutions, advanced packaging, and testing equipment.”

Yuan Shuai, Deputy Secretary-General of the Zhongguancun IoT Industry Alliance, told Securities Daily: “Baiwei Storage has seized opportunities and gained development dividends during this industry upcycle, which is the result of the company’s continuous R&D innovation and market deepening under favorable policies. China’s large downstream consumer electronics and server markets provide fertile ground for domestic storage development. In recent years, a number of companies like Baiwei Storage have emerged, gradually entering the supply chains of top domestic and international brands, establishing a foothold and growing stronger in the market.”

Accelerating Development of Chinese Companies

This year, storage product prices have risen beyond expectations. According to TrendForce, a Shenzhen-based industry consulting firm, its latest industry survey in February revised upward its estimates for Q1 price increases of DRAM and NAND Flash. The company raised the Q1 contract price increase for regular DRAM from 55-60% to 90-95% compared to the previous quarter, and for NAND Flash from 33-38% to 55-60%, indicating potential for further upward revisions.

Research reports from China Merchants Securities show that global new supply in 2026 will be limited, and the storage shortage trend is expected to continue into 2027. With prices and demand resonating, domestic and international storage companies are set to see a year of significant performance releases.

Chinese storage companies are seizing the market demand during this boom cycle to accelerate development. Changxin Technology Group Co., Ltd. (hereinafter “Changxin Technology”) applied for an IPO on the STAR Market on December 30, 2025. Its prospectus shows that the company has adopted a “jumping generation R&D” strategy, completing mass production from the first-generation process technology platform to the fourth-generation platform, and covering and iterating products from DDR4, LPDDR4X to DDR5, LPDDR5, and 5X. Its core products and process technologies have now reached international advanced levels.

Baiwei Storage listed on the STAR Market on December 30, 2022. In recent years, the company has built a strong competitive edge in AI edge storage products and expanded its advantages through vertical integration of “high-performance storage + wafer-level packaging and testing.” When surveyed by institutions, a company executive said: “Our wafer-level advanced packaging and testing manufacturing project in Songshan Lake, Dongguan, is progressing smoothly. The company expects the monthly capacity of this project to reach 5,000 wafers by the end of 2026.”

Shenzhen Jiangbolong Electronics Co., Ltd. (hereinafter “Jiangbolong”) has launched multiple main control chips. When recently surveyed by institutions, the company stated: “Based on our main control chip capabilities, we have established deep cooperation with several wafer foundries and leading smart terminal device manufacturers. Our self-developed UFS 4.1 products equipped with our main control chips are about to be mass shipped.”

Fu Yifu said: “The development pace of Chinese storage companies has become a key factor influencing the industry’s competitive landscape. As Chinese companies accelerate technological iteration and continuously release capacity, coupled with industry chain collaborative innovation and deeper market applications, Chinese firms are expected to further enhance their global competitiveness and promote the diversification and balance of the global storage industry.”