According to the Zhitong Finance APP, Tianfeng Securities has released a research report stating that it is optimistic about the opportunities in the storage sector driven by three factors: the sustainability of price increases, strong catalysis from AI, and accelerated localization. 1) The large storage sector may continue to see price increases in Q3 and Q4, 2) AI servers, PCs, and smartphones are driving rapid upgrades in storage capacity, with the penetration rates of high-value products such as HBM, eSSD, and RDIMM continuing to rise, boosting sector revenue, 3) The localization rate of high-difficulty, high-speed development products such as HBM, eSSD, RDIMM, and DDR is continuously improving, further accelerating the growth of the domestic storage market.

Recommended focus: Storage module main control: Jiangbolong (301308.SZ) (joint coverage by Tianfeng Computer), Demingli (001309.SZ), Baiwei Storage (688525.SH), Langke Technology (300042.SZ), Wanrun Technology (002654.SZ), Lianyun Technology (688449.SH), etc.; Storage chips: Zhaoyi Innovation (603986.SH), Beijing Junzheng (300223.SZ), Purun Co., Ltd. (688766.SH), Dongxin Co., Ltd. (688110.SH), Hengshuo Co., Ltd. (688416.SH), Montage Technology (688008.SH), Giantec Semiconductor (688123.SH), etc.; Storage distribution and testing: Shannon Chip Creation (300475.SZ), Deep Technology (000021.SZ), Taiji Industry (600667.SH), Xiechuang Data (300857.SZ), Changdian Technology (600584.SH), Tongfu Microelectronics (002156.SZ), HUA TIAN (002185.SZ), etc.

1) The storage market showed a strong upward trend in Q2, with the momentum for price increases in DRAM/NAND strengthening in Q3-Q4, driven by supply-side reforms leading DDR4 to take the lead. Recent analysis: The semiconductor storage market has gradually begun to recover since the end of March 2025, with both DRAM and NAND starting to enter an upward channel from March. In terms of leading products, Micron's recent suspension of DDR4/LPDDR4 production has caused a structural shortage, resulting in an imbalance between supply and demand in the spot market: DDR4 prices jumped 50% in June alone, with channel memory modules seeing a cumulative increase of over 30% in two weeks, and low-capacity eMMC prices doubling compared to the end of last year.

The price increase trend for Q3 and Q4 is clear:

① DRAM and DDR4 contract prices: The expected increase for PC DDR4 has expanded to 18-23% (TrendForce), with server DDR4 increasing by 8-13%; DRAM is expected to continue rising in Q4;

② NAND Flash: The contract price increase for Q3 has been revised up to 5-10%, with a significant increase in enterprise SSD orders, and the expectation of continued price increases in Q4 is projected to rise by 8-13%;

③ Low-capacity products: The 256Gb TLC wafer is continuously in short supply due to the original factory's suspension of production, and LPDDR4x still has room for price increases. The core logic lies in the resonance of supply-side contraction (the original factory's old process capacity shifting to HBM/advanced nodes) and inventory replenishment (servers/PC OEMs stocking up in advance), directly benefiting domestic module manufacturers from order transfer bonuses, with significant performance elasticity 2) Increase in AI Penetration on the Demand Side: Computing Power Demand Leads Storage Upgrades, Rapid Increase in Storage Capacity for Servers, PCs, and Mobile Phones

AI Servers: It is expected that by 2025, the HBM market demand will increase by 117% year-on-year, and DDR5 demand will grow by 212%; enterprise-level SSDs are expected to become the largest application by 2027, accounting for 31% of NAND demand terminals.

AI Terminals: ① According to flash memory market forecasts, the AI PC penetration rate will reach 35% by 2025, driving a 12.4% annual increase in single-machine DRAM capacity (64GB memory becoming the new standard), and PCIe 5.0 SSDs will accelerate in popularity; ② AI smartphones will drive LPDDR5X demand to increase by 427% year-on-year (driven by GRACE CPU), with 24GB + 1TB combinations becoming mainstream. ③ Automotive electronic storage: Zhiyan Consulting predicts that the market size will increase from USD 4.76 billion in 2023 to USD 10.25 billion in 2028.

3) Breakthrough in Domestic Production: Technical Challenges in Enterprise-Level Storage/Main Control Chips/Packaging and Testing, Capacity Expansion Reshaping Supply Chain Patterns

Module Manufacturers' High-End Breakthroughs, Self-Developed Main Control Building Moats: Jiangbolong launched PCIe SSDs compatible with domestic CPUs, integrating Sandisk BiSC8 flash memory technology with self-developed main control based on the TCM model; Baiwei Storage released the world's leading PCIe 5.0 enterprise-level SSD (SP5 series, read/write 13.2/10GB/s) and 96GBCXL memory modules. At the same time, domestic storage module and main control chip manufacturers such as Jiangbolong, Baiwei Storage, Demingli, Lianyun Technology, Wanrun Technology, and Langke Technology are enhancing competitiveness through technological advancements, enterprise-level breakthroughs, self-developed main control chips, cutting-edge interface technologies (PCIe 5.0, UFS4.1, LPDDR5X, CXL) applications, and automotive certification, accelerating the process of domestic substitution.

Chip Manufacturers' Platform Layout, Dual Track Progress in Interface and Storage Technology

Montage Technology leads DDR5 iteration: RCD chips are rapidly developing, with over one million PCIe 6.0 Retimer shipments, and MRCD chips supporting MRDIMM scale trials; Gigadevice's automotive-grade NOR Flash has obtained ASIL D certification, accelerating LPDDR5 development; Giantec Semiconductor benefits from DDR5 penetration, with a significant increase in SPD product sales. Dongxin/Hengshuo and other manufacturers are advancing SLC NAND risk mass production, automotive certification, and AI chip development. Purin's SONOS process covers the entire series at the 40nm node for smart wearables; ETOX process forms a large-capacity layout at 50nm/55nm.

Collaboration Breakthroughs in Packaging and Testing with Solution Providers, Domestic Delivery System Taking Shape

Taiji Industrial has conquered 32D stacking and SDBG processes, achieving verification of 300+ layers of NAND, with Haitai Semiconductor's packaging and testing capacity reaching 2.26 billion Gb/month; Deep Technology's PoPt packaging has entered mass production, benefiting from a recovery in HDD business demand. On the application side, Co-creation Data's enterprise-level SSD adapts to AI computing power, with unmanned beverage machines deployed in 150 cities nationwide; Shannon Xinchuan's "Haipu Storage" DDR5/eSSD has passed server certification, achieving a closed loop from technology to delivery in the domestic enterprise-level storage ecosystem At the same time, integrated packaging and testing companies such as Changdian Technology, Tongfu Microelectronics, and HUA TIAN are also actively laying out storage, with smooth progress in the industry