Gao Qiquan: Changxin Storage is building 10 wafer fabs, DRAM prices may come under pressure

Gao Qiquan, former president of South Asia Technology, stated that Chinese DRAM manufacturer Changxin Storage is building 10 wafer fabs in Beijing, Shanghai, and other locations, with most of the new production capacity expected to come online in the next two years. He believes that even though Chinese manufacturers still face technical limitations, a significant increase in DRAM output may still lower storage prices; once the new wafer fabs are successfully put into production and increase commercially viable output, market competition may exert pressure on DRAM contract prices.

Gao Qiquan indicated that this supply risk is at a mid-term level and does not mean that consumer-grade memory prices will immediately drop. If DRAM prices decrease, the component costs for PC manufacturers, smartphone brands, and other storage purchasers may also decline; Samsung Electronics, SK Hynix, and Micron may face price competition from Changxin Storage's capacity expansion before its technology catches up.