I. SanDisk Leads the Price Increase, Setting Industry Trends

• Price Increase Notice: Prices for channel and consumer customers will rise by over 10% starting April 1.

• Reasons for the Price Hike: Rising costs due to technology upgrades and capacity adjustments.

• Future Trends: Extended delivery lead times, with further price increases expected in the coming quarters.

• Market Position: SanDisk, together with Samsung and Kingston, forms a "three-pillar" market structure. Its pricing decisions serve as an industry benchmark.

II. Other Major Manufacturers Follow Suit

• Micron: Sent encrypted emails to channel partners, hinting at imminent price adjustments.

• SK Hynix: DDR5 and eMMC spot prices have risen across the board.

• Domestic Storage Manufacturers:

• Yangtze Memory (ZhiTai): Announced a 10%-15% price increase for deliveries starting in April 2025.

• Other domestic storage manufacturers are also adjusting prices in line with industry trends.

III. Signs of an Industry Cycle Reversal

• Production Cuts by Major Suppliers:

• At the end of 2024, the five major storage chip manufacturers (Micron, Samsung, SK Hynix, Western Digital, etc.) initiated production cuts.

• The average reduction was 12.5%, decreasing global NAND production by approximately 450,000 wafers per month.

• Accelerated Inventory Reduction: Production cuts help accelerate inventory clearance, driving industry adjustments.

• Price Increases Align with Industry Cycles: Capacity reduction has historically led to new rounds of price hikes.

IV. Is the Storage Industry Entering a Full Recovery?

• Will the Price Hikes Continue?: Future supply and demand dynamics remain uncertain.

• Signs of Market Recovery?: It is still unclear whether rising prices will stimulate overall demand growth.

• Long-Term Outlook: The storage industry’s future development will continue to be influenced by global market conditions.