Biwin Storage Signs $1.5 Billion Procurement Contract, Storage Chip Concept Stocks Rise Over 10%

How does AI · Baiwei Storage lock in cost fluctuations for its $1.5 billion procurement contract?

On March 25, storage chip concepts became active again, with Shangluo Electronics, Jintaiyang, Baiwei Storage, and Sanfu Co., Ltd. rising over 10%. Sifang Co., Ltd. hit the daily limit, while Chuangxin Data, Jiangfeng Electronics, Lianyun Technology, and others followed the rally.

According to the announcement on the evening of March 24, Baiwei Storage signed a routine operational procurement contract with a certain storage manufacturer. The company agreed to purchase a specific type of storage wafer from the supplier at the agreed quantity, price, and schedule. The total committed purchase amount is $1.5 billion, with a commitment period of 24 months. The procurement will be evenly distributed over 8 quarters, with prices locked at the fixed unit price from Q2 2026 to Q1 2028.

The announcement states that the total committed procurement amount exceeds 50% of the company’s audited revenue and total assets for the most recent fiscal year. If the contract is successfully fulfilled, it will help strengthen the stability of the company’s medium- and long-term storage wafer supply and reduce the impact of storage wafer price fluctuations on costs.

According to Cailian Press, Wedbush, a well-known Wall Street investment bank, recently pointed out that the surge in memory demand driven by AI infrastructure development and tight supply will push some memory product prices up by over 100%.

In a report released Monday, Wedbush analysts stated that DRAM and NAND storage prices are rising rapidly, with expected price increases reaching triple digits by the first half of 2026 compared to Q4 2025. DRAM prices are expected to increase by 130% to 150%, with NAND approaching similar levels, indicating that the storage market is entering a new strong cycle.

Guojin Securities points out that demand is exploding, and computing power and storage are entering a high-growth cycle. The global deployment of generative AI and large industry models is accelerating, with enterprise AI computing and data storage demand continuing to grow, leading cloud providers to face resource shortages. As a leading domestic cloud service provider, Alibaba Cloud’s price hikes serve as industry indicators and are expected to drive price transmission across the sector, creating a double-davis effect in the computing and storage sectors. Supply chain costs are under pressure, and price increases will open up profit margins. Upstream of the computing and storage industry chain (GPU, storage chips, optical modules, etc.) faces capacity constraints and raw material price increases, continuing to pressure costs. Price hikes for this product will effectively ease corporate cost pressures and gradually release profit elasticity, with leading companies that have technological barriers and scale advantages benefiting first. Domestic innovation is accelerating, with self-controlled manufacturers seizing opportunities. Disruptions in overseas supply chains are intensifying, prompting domestic cloud and computing companies to accelerate self-reliance and control. Demand for domestic servers, storage chips, and IDC segments continues to rise, and companies with full industry chain layouts will take the lead in the wave of domestic innovation.

Orient Securities states that AI demand is leading, and NAND supply remains tight. Relevant targets include domestic storage chip designers such as Zhaoyi Innovation, Puran Co., Ltd., Jucheng Co., Ltd., Dongxin Co., Ltd., Beijing Junzheng, Hengshuo Co., Ltd.; domestic storage module manufacturers like Jiangbolong, Demingli, Baiwei Storage; companies benefiting from storage technology iteration such as Lankei Technology, Lianyun Technology, Aojie Technology; semiconductor equipment firms like Zhongwei, Jingzhida, Jingyi Equipment, Tuojing Technology, North Huachuang; domestic packaging and testing companies such as Shen Technology, Huicheng Co., Ltd., Tongfu Microelectronics; and supporting logic chip manufacturers like Jinghe Integration.