The storage chip industry chain follows the progressive conduction logic of “basic support → core manufacturing → product landing → ecological services,” with 15 companies categorized by upstream basic layer, midstream manufacturing and design layer, and downstream application and supporting layer. Each link independently carries core functions of the industry chain while forming an efficient closed loop through capacity collaboration and technological complementarity. The following is a deep analysis combining industry cycles (overseas production cuts + AI demand resonance) and core trends (deepening domestic substitution, scenario-based innovation):

1. Upstream Basic Layer: The “Root Technology” Guarantee of the Industry Chain

The upstream is the “prerequisite base” for the R&D and landing of storage chips, directly determining the degree of self-control in the industry chain. It focuses on three key areas: EDA tools (design efficiency), core equipment (capacity landing), and electronic materials (performance guarantee), which are the core breakthrough directions for domestic substitution.

1. EDA Tools: The “Digital Brush” for Chip Design

EDA tools are the core prerequisites for storage chip design, directly determining the R&D cycle and process accuracy of chips. Their technological maturity directly affects the efficiency of advancing advanced processes.

• Gaon Electronics (688206): A “manufacturing technology benchmark” in the domestic EDA field, with core advantages concentrated in two main tools: storage chip device modeling and yield optimization. The technology has penetrated the international top supply chain (Samsung, SK Hynix), supporting the R&D of storage chips with advanced processes of 10nm and below; as a strategic supplier for Yangtze Memory Technologies, its tools are deeply adapted to 3D NAND flash memory processes, directly ensuring the efficiency of advanced process iteration for domestic storage giants, making it a “key invisible cornerstone” for domestic substitution in storage chips.

2. Manufacturing Equipment: The “Core Equipment” for Capacity Landing

Manufacturing equipment is the “hardware core” for the large-scale mass production of storage chips, especially thin film deposition and etching equipment, which directly determines the capacity and yield of wafer manufacturing.

• Tuojing Technology (688072): A “leading domestic participant” in the global thin film deposition equipment field, with core products including HDPCVD (High-Density Plasma Chemical Vapor Deposition) equipment, which can cover key process links such as STI (Shallow Trench Isolation) and ILD (Inter-Layer Dielectric) for storage chips. It has the dual advantages of high capacity and low particle size, and can simultaneously adapt to the needs of various technology nodes for logic chips and storage devices. It has already achieved large-scale application in the 12-inch production lines of Yangtze Memory Technologies and Hua Hong Semiconductor, directly benefiting from the domestic storage capacity expansion.

3. Electronic Materials: The “Material Basis” for Chip Performance

Electronic materials are the “underlying guarantee” for the performance and reliability of storage chips, and the domestic production rate of high-end materials directly affects the cost and safety of the industry chain.

• Zhongjuxin (688549): One of the few comprehensive material companies in China capable of multi-category layouts of electronic wet chemicals, specialty gases, and precursors. Its core products, electronic-grade hydrofluoric acid and sulfuric acid, have reached SEMI G5 level (international high-end standard), meeting the cleaning and etching needs of 12-inch 1Xnm process storage chips; it has now stably supplied leading manufacturers such as Yangtze Memory Technologies and Hua Hong Group, occupying about 30% of the domestic market for storage material substitution, and after the completion of the second phase of capacity expansion, it will further fill the domestic supply gap for high-end storage materials.

2. Midstream Manufacturing and Design Layer: The “Value Core” of the Industry Chain

The midstream is the core link for “transforming technology into products” for storage chips, covering wafer foundry (capacity supply) and chip design (technological innovation), directly determining product performance, cost, and market competitiveness, and is the main bearer of the industry’s “simultaneous increase in volume and price” dividends.

1. Wafer Foundry: The “Core Hub” for Capacity Supply

Wafer foundry is the “bridge” connecting design and mass production, especially in the context of overseas giants shrinking mature process capacity, domestic foundry capacity has become the core guarantee for niche storage chips.

• Hua Hong Semiconductor (688347): A leading domestic foundry specializing in unique process technology, with a core strategy of “deep cultivation in mature processes + breakthroughs in storage.” Its 48nm NOR Flash and 55nm eFlash MCU processes have achieved large-scale mass production, deeply binding with leading design manufacturers such as GigaDevice; after the production of the 12-inch production line in Wuxi, the storage foundry capacity has doubled, becoming the core capacity base for domestic niche storage chips (mid-to-low-end NOR, NAND), directly benefiting from the gap in the mid-to-low-end storage market caused by the contraction of Samsung and Micron.

2. Chip Design: The “Core Carrier” of Technological Innovation

Chip design is the “source” of technological differentiation for storage chips, which can be divided into three categories based on product direction: traditional storage, storage control, and emerging storage, covering different application scenario needs.

(1) Traditional Storage Chip Design: Focusing on Market Replacement and High-End Scenario Breakthroughs

• GigaDevice (603986): A “versatile leader” in domestic storage design, with its NOR Flash global market share rising to second place in 2024 (only behind Winbond Electronics), and its 55nm process level on par with international first-tier manufacturers; automotive-grade NOR Flash has entered the core supply chain of Tesla and BYD, while also horizontally laying out SLC NAND and niche DRAM, precisely positioning itself in the mid-to-low-end storage market vacated by overseas giants. In 2024, the gross margin of its storage business increased by 7 percentage points year-on-year, showing significant profitability elasticity during the industry’s recovery cycle.

• Puran (688766): A “segment champion” in automotive-grade small and medium capacity storage, with its small and medium capacity NOR Flash automotive products having completed AEC-Q100 automotive certification, and the entire series of EEPROM passing automotive reliability assessments, with penetration rates in automotive electronics (cockpit, autonomous driving domain) continuously increasing; leveraging low-power technology advantages, it also covers high-reliability scenarios in consumer electronics (TWS earbuds) and industrial control (smart sensors), forming a dual market layout of “automotive-grade as the main focus, general-purpose as a supplement”.

• Jucheng (688123): An “invisible champion” in the EEPROM field supporting memory, with products covering mainstream interfaces such as I2C and SPI, widely used in memory module SPD chips (storage parameter identification), smartphone camera modules, and LCD panel driver circuits; as a core supporting supplier for Samsung memory and JD panel, it maintains a leading market share in the domestic EEPROM supporting field, forming functional complementarity with main storage chips and strong demand stability.

(2) Storage Control and Solution Design: The “Technical Link” Connecting Chips and Modules

• Demingli (001309): A “scene adaptation expert” for storage control chips, with core products covering multiple interface protocols such as SATA III and USB 3.2, capable of supporting performance optimization for SSD solid-state drives and mobile storage modules (including core functions such as garbage collection, wear leveling, and bad block management); it has outstanding competitiveness in the consumer electronics storage field, becoming a core participant in the domestic storage module market due to the continuous growth of consumer electronics storage orders.

• Canxin (688691): A “custom design service provider” for storage chips, adopting a Fabless model to provide one-stop design services from specification definition, IP integration to mass production support, with core advantages in high-performance storage IP and SoC solutions (covering high-speed storage controllers and interface chips); through deep strategic cooperation with SMIC, it provides process adaptation and technical landing guarantees for small and medium storage design companies, indirectly promoting differentiated innovation in storage chips.

(3) Emerging Storage and Technological Breakthroughs: The “Track Pioneer” for Future Storage

• Hengshuo (688416): A “pioneer” in the integration of storage and computing (computing-storage integration) technology, with its AI inference computing chip achieving a 10-fold improvement in energy efficiency compared to traditional “CPU + memory” solutions, already applied in intelligent driving perception and awarded key projects from leading automotive companies; while retaining the basic NOR Flash business, it is also laying out emerging storage technologies such as MRAM (Magnetoresistive RAM), forming a dual-driven model of “traditional storage for revenue, emerging technologies for expansion,” precisely aligning with the high demand for storage efficiency in AI computing.

3. Downstream Applications and Supporting Layer: The “Value Landing” of the Industry Chain

The downstream is the final link for storage chips “from product to market,” achieving commercial value through module integration, distribution services, and supporting components, directly reflecting industry prosperity and changes in scenario demand.

1. Storage Modules: The “Conversion Hub” from Chips to Terminals

Storage modules are the core link for packaging bare chips into terminal usable products, directly connecting to consumer, automotive, and server terminal demands.

• Jiangbolong (301308): A “full-scenario leader” in domestic storage modules, owning dual brands Lexar (consumer storage, such as USB drives, memory cards) and FORESEE (enterprise/industrial storage); in the first half of 2025, shipments of AI server PCIe SSDs ranked among the top ten globally, with deep cooperation with computing device manufacturers such as Huawei and Inspur; its module solutions cover all scenarios in consumer electronics, industrial control, and data centers, directly benefiting from the industry’s simultaneous increase in volume and price.

• Baiwei Storage (688525): A “leader” in automotive-grade storage modules, with eMMC and UFS automotive storage products having passed AEC-Q100 certification, stably supplying leading automotive companies such as Tesla and Li Auto (for in-vehicle infotainment systems and autonomous driving domain controllers); it is also laying out industrial-grade storage (adapting to AIoT smart devices), with a significant increase in orders for consumer-grade modules against the backdrop of a continuous expansion of the supply-demand gap in mid-to-low-end storage.

• Daiwei (002213): A “new breakthrough” in storage solutions, laying out DDR3, DDR4, LPDDR4X and other storage product lines through its wholly-owned subsidiary Daiwei Chuangxin, which has passed compatibility certification with platforms such as Rockchip (processors) and Feiteng (domestic CPUs), successfully entering the supply chain of operators (base station storage) and AIoT devices (smart gateways); adopting an “international particles + domestic solutions” model, accelerating the replacement of international brands in the niche storage market, with a year-on-year revenue growth of 28.68% in the storage business in the first three quarters of 2025, significantly higher than the industry average growth rate.

2. Distribution and Services: The “Core Link” of Market Circulation

The distribution link is the “channel bridge” connecting storage chip manufacturers with end customers, while also providing technical adaptation services to enhance the efficiency of the industry chain.

• Shannon Chip Creation (300475): A benchmark for “distribution + self-research” dual-driven in the storage field, acting as a core agent for SK Hynix storage products, deeply binding with cloud manufacturers such as ByteDance and Alibaba (supplying data center storage); on the other hand, through its subsidiary Haipu Storage, it self-develops enterprise-grade SSDs and DRAM modules, with its PCIe 5.0 enterprise-grade SSD already adapted to Alibaba Cloud’s intelligent computing platform; in 2025, it successfully won over 30% of the “East Data West Computing” Chengdu-Chongqing hub storage project, becoming a core supporting service provider in the AI computing storage field.

3. Supporting Components: The “Support Guarantee” for Product Landing

Supporting components are the “hardware foundation” for the stable operation of storage modules, and their performance directly affects the reliability and signal transmission efficiency of storage products.

• Shennan Circuit (002916): The “core PCB supplier” for storage modules, with its high-density PCB (printed circuit board) products widely used in SSD solid-state drives and memory modules’ signal transmission links, possessing high reliability and low signal interference advantages; as a core PCB supplier for server manufacturers such as Huawei and Inspur, it directly benefits from the rapid expansion of AI server storage module capacity, being an indispensable supporting link in the storage industry chain.

4. Industry Logic and Investment Perspective

1. Cycle-Driven Logic: The current storage chip industry is in a supply-demand resonance cycle of “overseas production cuts (supply contraction) + AI demand explosion (demand expansion),” with core companies such as Hua Hong Semiconductor (foundry capacity), GigaDevice (design end), and Jiangbolong (module end) directly benefiting from product price increases. In the third quarter of 2025, many core companies’ storage-related orders increased by over 50% year-on-year, with performance elasticity continuously released.

1. Technological Breakthrough Logic: The progress of domestic substitution in upstream “bottleneck” links such as Gaon Electronics (EDA), Tuojing Technology (manufacturing equipment), and Zhongjuxin (electronic materials) directly determines the degree of self-control in the domestic storage industry chain; breakthroughs in technology and capacity release in these links are not affected by short-term industry cycle fluctuations and possess long-term growth value.

1. Scenario Differentiation Logic: The continuous explosion of demand in segmented scenarios such as automotive-grade (Baiwei Storage, Puran), AI server-grade (Shannon Chip Creation, Jiangbolong), and industrial-grade (Daiwei) drives storage companies to transform from the general market to high-margin segmented fields, forming differentiated competitive advantages. These companies have stronger risk resistance capabilities in industry competition.

Special Statement: The content related to this account is sourced from historical public data on the internet. If there are any errors, please refer to the latest data. It is for research and discussion purposes only and does not constitute any investment advice. Please do not use this as a basis for investment decisions. If there are any inaccuracies, please feel free to provide corrections. Investment involves risks, and caution is advised.