AI Rewrite Storage Chip Cycle

In the past, storage chips were seen as typical "cyclical products," with price fluctuations following inventory cycles. Today, the demand for storage in data centers has surged significantly, and the explosion of AI computing power is reshaping the demand structure for storage chips. The AI-driven structural growth is propelling storage from being a "cyclical product" to a "growth mainstay." The head of a chip mounting equipment company in Dongguan told reporters that their shipment volume in the first half of this year doubled compared to the same period last year. In response to the surge in orders, they have expanded their production facility in Dongguan by 50% this year. Sun Rixin, president of the Shenzhen Memory Industry Association, noted that in the past, storage products exhibited obvious cyclical characteristics. However, after the explosion of AI applications, the share of storage demand from data centers has jumped from over 20% two years ago to over 60% now, and the cyclical characteristics of storage are being altered by AI-driven structural growth.