ChangXin Toughens Stance on Price Increase, Domestic Storage to Expand Production

According to Data Beating monitoring, as reported by Reuters, AI data centers are driving up memory demand, leading to price hikes and expansion plans by ChangXin Memory and Yangtze Memory. These two companies used to rely on low prices to gain market share, but now they can be more selective with customers, and some of their products are even selling at higher prices than those of overseas giants.

An insider told Reuters that ChangXin has raised prices for Huawei multiple times. Even after Huawei requested a price reduction, ChangXin did not back down.

ChangXin is constructing two new factories in Shanghai and Hefei, with considerations for a third. Once all facilities are operational, its monthly capacity will exceed 600,000 wafers, more than doubling its current output.

Yangtze Memory also plans to build two new factories, with one expected to be completed this year. The new capacity is not expected to come online until at least 2027, at which point the two companies may expand their overseas supply beyond meeting domestic demands.

Several domestic technology and electronics companies have filed complaints with the Ministry of Industry and Information Technology due to price hikes. While domestic memory manufacturers used to worry about selling their products, the bigger concern now is the insufficient production capacity.