Changxin Storage Raises Prices and Expands Production, Yangtze Memory Plans New Factory

Changxin Storage and Yangtze Memory are raising prices and expanding production due to increased memory demand from AI data centers. The two companies, which previously relied on low prices to capture market share, can now select customers, with some products priced even higher than overseas competitors. Changxin has raised prices multiple times for Huawei, despite Huawei's requests for price reductions, Changxin has not yielded. Changxin is building two new factories in Shanghai and Hefei, and is considering a third, with monthly production capacity expected to exceed 600,000 wafers after production begins, more than doubling the current capacity. Yangtze Memory also plans to add two new factories, one of which is expected to be completed this year, with new capacity likely to be released by 2027, potentially expanding overseas supply. Several domestic technology and electronics companies have complained to the Ministry of Industry and Information Technology about the price increases, with the main issue facing domestic storage being insufficient production capacity.