01 Overview of the Industry Chain

Storage chips, as a core branch of the semiconductor industry, are key carriers for digital information storage and processing, integral to the operation of various electronic systems. The industry chain is mainly divided into three major segments: upstream support, midstream manufacturing, and downstream applications, each with its unique technical barriers and market structures.

The upstream mainly includes semiconductor materials, equipment, and EDA/IP; the midstream involves chip design, manufacturing, and packaging/testing; while the downstream covers module manufacturing, distribution, and end-user application markets. With the rapid development of technologies such as AI, 5G, and cloud computing, the demand for storage chips continues to rise, driving collaborative growth across the entire industry chain.

02 Industry Definition

Storage Chip: A storage chip refers to a type of digital chip used to store data within integrated circuits, and is an important branch of the semiconductor industry. Based on whether data is lost after power off, storage chips can be classified into volatile and non-volatile types.

Volatile Storage Chips: Require continuous power supply to maintain data, mainly including Dynamic Random Access Memory (DRAM) and Static Random Access Memory (SRAM). DRAM is currently the most widely used memory chip, primarily utilized as the main memory in computers, servers, and mobile devices.

Non-volatile Storage Chips: Can retain data after power off, mainly including NAND Flash, NOR Flash, EEPROM, etc. NAND Flash is widely used in solid-state drives (SSD), USB flash drives, and storage for mobile devices due to its high capacity and low cost.

The Chinese government places great importance on the development of the storage chip industry, designating it as a national strategic emerging industry. With the acceleration of the localization process, domestic companies such as Yangtze Memory Technologies and ChangXin Memory Technologies are rapidly rising, injecting new momentum into China’s storage chip industry.

03 Upstream Industry Chain

The upstream is the foundational layer of the storage chip industry, providing the necessary tools and raw materials for chip manufacturing, including semiconductor materials, semiconductor equipment, and EDA/IP.

1. Semiconductor Materials

Semiconductor materials are the foundation for manufacturing storage chips, mainly including silicon wafers, specialty gases, photoresists, and CMP polishing materials.

Silicon Wafers: The base material for chip manufacturing.Representative companies: Shanghai Silicon Industry, Li’an Micro

Specialty Gases: Used in etching, deposition, and other processes.Representative companies: Huate Gas, China Shipbuilding Gas

Photoresists: Key consumables in photolithography processes.Representative companies:Anji Technology, Nanda Optoelectronics

CMP Polishing Materials: Includes polishing liquids and pads.Representative companies: Anji Technology, Dinglong Co., Ltd.

2. Semiconductor Equipment

Semiconductor equipment is the core tool for chip manufacturing, characterized by high technical barriers and long R&D cycles, making it one of the most challenging yet crucial aspects of the semiconductor industry.

Photolithography Equipment: Used in the photolithography process for chip manufacturing.Representative companies: Shanghai Microelectronics

Etching Equipment: Used in the etching process for chip manufacturing.Representative companies: Zhongwei Company

Thin Film Deposition Equipment: Includes CVD, PVD, and ALD equipment.Representative companies: TuoJing Technology, North Huachuang

CMP Equipment: Chemical mechanical polishing equipment.Representative companies: Huahai Qingke

Cleaning Equipment: Used for cleaning during the chip manufacturing process.Representative companies: Shengmei Shanghai, Chip Source Micro

3. EDA/IP

EDA (Electronic Design Automation) tools and IP (Intellectual Property cores) are the foundation of chip design, providing the software tools and predefined functional modules necessary for chip design.

EDA Tools: Used for the entire process of chip design.Representative companies: Huada Jiutian, Gai Lun Electronics, Guangli Micro

IP Cores: Provide predefined functional modules.Representative companies: Xinyuan Co., Ltd.

04 Midstream Industry Chain

The midstream is the core of the storage chip industry chain, directly producing storage chip products, including three main segments: chip design, manufacturing, and packaging/testing.

1. Chip Design (Fabless)

The chip design segment is responsible for the circuit design and functional definition of storage chips, making it one of the most technically intensive segments in the industry chain.

Niche/General Storage:GigaDevice – Leader in NOR Flash, self-developed DRAM chips; Beijing Junzheng – Automotive-grade storage chips; Dongxin Co., Ltd. – SLC NAND Flash; Puran Co., Ltd. – NOR/EEPROM

Interface Chips: Lanke Technology – Leader in memory interface chips

2. Wafer Manufacturing (Foundry/IDM)

The wafer manufacturing segment implements the design blueprints on silicon wafers, completing the microstructure manufacturing of chips, and is the segment with the highest capital and technology intensity in the industry chain.

International Foundries: Samsung, SK Hynix, Micron (the three giants dominate the DRAM and NAND markets)

Domestic Foundries: Yangtze Memory Technologies (NAND Flash, not listed), ChangXin Memory Technologies (DRAM, not listed) – the cornerstone of the domestic storage industry, accelerating capacity expansion and localization

3. Packaging and Testing (OSAT)

The packaging and testing segment is responsible for cutting the manufactured wafers into bare chips, providing packaging protection and performance testing to ensure that the chip functions and performs to standards.

Traditional Packaging and Testing: JCET, Tongfu Microelectronics, Huatian Technology – the three giants in domestic packaging and testing

Advanced Packaging and Testing: Tongfu Microelectronics – the leading domestic player in storage packaging and testing; Shen Technology – the largest independent DRAM chip packaging and testing enterprise in China

05 Downstream Industry Chain

The downstream is the segment that pushes storage chips to the market, including storage module manufacturing, distribution channels, and end-user application markets, directly addressing various electronic devices and industry needs.

1. Storage Module Manufacturing

The storage module manufacturing segment procures storage wafers (NAND Flash or DRAM particles), combines them with controller chips, and designs and produces directly usable products such as SSDs and memory modules.

Module Manufacturers: Jiangbolong, Baiwei Storage, Demingli, Shannon Chip Creation

Controller Chips: Lianyun Technology (not listed) – leader in storage controller chips

2. End-user Application Market

The downstream applications of storage chips are extensive, covering consumer electronics, data centers, automotive electronics, industrial control, and more.

(1) Data Centers/AI Servers

With the rapid development of AI and cloud computing, the demand for high-capacity, high-performance storage in data centers has surged. HBM (High Bandwidth Memory), high-capacity DRAM (DDR5), and enterprise-grade SSDs have become core demands, driving the strongest growth.

(2) Consumer Electronics

Smartphones, PCs, AIPC, AI smartphones, and other consumer electronics are traditional application areas for storage chips. Although the market is becoming saturated, the increase in single-device storage capacity continues to drive overall demand growth.

(3) Automotive Electronics

Smart cockpit, autonomous driving, and other functions are driving rapid growth in automotive-grade storage demand. Automotive-grade storage chips must meet stringent requirements for high reliability and wide temperature ranges, with high technical and customer certification barriers.

Representative companies: Beijing Junzheng – a global leader in automotive electronic storage chips

(4) Industrial Control and IoT

Demand for storage chips in industrial automation and smart IoT devices is also increasing, especially in edge computing and real-time data processing fields.

06 Overview of A-share Listed Companies

To facilitate investors in understanding and tracking the storage chip industry chain, we have compiled a list of major listed companies in the A-share market and their positions in the industry chain:

Industry Chain Segment	Sub-field	Representative Listed Companies	Core Business
Upstream	Semiconductor Materials	Shanghai Silicon Industry, Huate Gas, Anji Technology	Silicon wafers, specialty gases, photoresists
Semiconductor Equipment	North Huachuang, Zhongwei Company, TuoJing Technology	Etching equipment, thin film deposition equipment
EDA/IP	Huada Jiutian, Gai Lun Electronics, Xinyuan Co., Ltd.	EDA tools, IP cores
Midstream	Chip Design	GigaDevice, Lanke Technology, Beijing Junzheng	NOR Flash, memory interface chips, automotive-grade storage
Wafer Manufacturing	SMIC	Wafer foundry, including storage chip business
Packaging and Testing	JCET, Tongfu Microelectronics, Shen Technology	Storage chip packaging and testing
Downstream	Module Manufacturing	Jiangbolong, Baiwei Storage, Shannon Chip Creation	SSD, memory modules, storage modules

07 Industry Outlook and Trends

The storage chip industry is currently in a golden development period driven by both technological innovation and market demand. According to Precedence Research, the global semiconductor market size is expected to grow from $627.76 billion in 2025 to $1.2 trillion in 2034, with a compound annual growth rate of approximately 7.54%.

On the technological front, advanced technologies such as 3D NAND and HBM continue to break through, with storage density and performance consistently improving. Meanwhile, emerging storage technologies like MRAM, ReRAM, and FeRAM are also accelerating development, with the potential for commercial breakthroughs in the coming years.

Localization is the core theme of China’s storage chip industry. With technological breakthroughs and capacity expansions from companies like Yangtze Memory Technologies and ChangXin Memory Technologies, China’s share in the global storage chip market will continue to rise. Policy support, capital investment, and talent accumulation will jointly drive the Chinese storage chip industry from following to leading.

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The content of this article is based on official media and online news sources. If there are any errors, please refer to the latest information. This article does not constitute any investment advice, guidance, or commitment, and is for academic discussion only. Please read with caution. The market has risks, and investment decisions should be based on rational independent thinking.