Storage Market: Resilience Amid Short-Term Adjustments, Long-Term Growth Driven by Technological Innovation and Demand
Recently, the storage market has shown multi-dimensional dynamic changes. Short-term pressure on Micron and SanDisk’s stock prices, SK Hynix’s global production capacity adjustment, outstanding performance of module manufacturers, and delays in HBM4 technology have intertwined, outlining a complex picture of the industry moving towards long-term growth amid short-term fluctuations.
Micron and SanDisk’s stock prices have recently suffered a sharp decline. Micron fell 4.75% in a single day to close at 118.61, hitting a new low since mid-June; SanDisk even plummeted 7.83% to 42.48. A report from Edgewater Research pointed out that storage demand in the second half of the year may be weaker than the seasonal trend, but at the same time emphasized that demand and quotation performance in the first half of 2025 were better than expected. This short-term adjustment has not shaken the market’s confidence in the long-term development of the storage industry.
SK Hynix’s strategic adjustment of production capacity at its Wuxi factory has also attracted attention. With the increase in production capacity at South Korea’s M16 factory, the production share of the Wuxi factory is expected to decline, but this adjustment is more of a strategic move by the company to optimize its global production capacity layout. By expanding the production of high-end products such as HBM (High Bandwidth Memory), SK Hynix has further consolidated its leading position in the storage market. Domestic DRAM production in South Korea already accounts for two-thirds of the global total, showing strong industrial competitiveness.
The research and development progress of HBM4 has become an important symbol of technological innovation in the storage industry. Although the testing cycle has been extended due to increased technical complexity, the fierce competition among the three giants SK Hynix, Samsung, and Micron indicates that HBM technology will usher in a new round of breakthroughs. The number of input/output terminals of HBM4 is twice that of HBM3E, and its performance improvement will provide stronger support for fields such as artificial intelligence and high-performance computing. The introduction of TSMC’s advanced processes will further improve data processing efficiency and energy efficiency ratio.
The outstanding performance of module manufacturers has become the best proof of strong market demand. ADATA’s second-quarter revenue hit a 15-year high, Team Group’s June revenue surged 85.97% month-on-month, and Apacer and Transcend also set 7-year and 3-year revenue highs respectively. These companies have reaped growth dividends by focusing on niche markets such as industrial control and AI PC/Server, as well as flexible layout of DDR4 and DDR5 products. The listing of Linghang Technology has injected new vitality into the storage market. Its dual-brand strategy focusing on e-sports and AI edge computing has achieved remarkable results, with DDR5 accounting for more than 55% of its products, accurately grasping technical trends.
In terms of prices, DDR4 spot prices doubled in the second quarter of 2025, and contract prices are expected to rise by more than 40% in the third quarter. The shift of original factory resources to HBM and DDR5 has led to limited DDR4 production capacity, and the tight supply and demand situation is difficult to ease in the short term. This has not only brought profit margins to module manufacturers with low-cost inventories but also accelerated the market’s technological transition to DDR5.
Although short-term fluctuations remain, the continuous expansion of artificial intelligence, high-performance computing and other fields, coupled with the iteration and upgrading of technologies such as HBM and DDR5, are opening up broad growth space for the storage industry. Driven by both technological innovation and market demand, the long-term prosperity of the storage market is clearly visible.