CITIC Securities: The increase in storage prices and high prosperity are expected to continue throughout 2026.

According to Yonhap News Agency on March 18, members of Samsung Electronics’ union approved a collective struggle action proposal with a 93.1% majority. The union plans to hold a rally on April 23 and conduct an 18-day nationwide general strike from May 21 to June 7.

In response, CITIC Securities pointed out that if the strike proceeds as scheduled, it could impact Samsung’s chip production lines at the Pyeongtaek Semiconductor Complex in South Korea, affecting the capacity release of DRAM, NAND flash, and HBM chips in the area. Once production lines are halted, restarting them requires re-testing and re-initiating the production process, which is time-consuming and resource-intensive. Since 2026, driven by strong demand for AI, storage chips remain in a tight supply-demand situation, with prices continuously rising. According to Omdia data, Samsung Electronics held a 36.6% share of the global DRAM market in Q4 2025. According to TrendForce data, Samsung’s share of the global NAND market in Q4 2025 was 28%. The potential risk of production stoppages could further exacerbate the global supply tightness of storage chips.

The firm believes that the rise in storage prices and high market prosperity are likely to continue throughout 2026. A possible total strike by Samsung Electronics could also present an opportunity for domestic storage giants to expand their market share. In recent years, domestic storage manufacturers have rapidly advanced capacity building and technological breakthroughs. Domestic 3D NAND products achieved mass production of 232-layer flash memory in 2025 and continue to iterate towards higher stacking layers. Domestic DRAM products have achieved mass production of mainstream fourth and fifth-generation DDR4, DDR5, LPDDR4X, LPDDR5/5X, etc. The capacity expansion and technological iteration of domestic storage giants are expected to accelerate during the 14th Five-Year Plan period, with their global market share likely to continue increasing.

Against the backdrop of a global shortage of storage products, rising prices and profitability, low domestic market share, and strong domestic industry policy support, the growth potential of core suppliers of materials and components is highly certain, driven by the demand increase from major storage manufacturers. Additionally, from a technological perspective, future 3D storage devices will significantly increase the consumption of semiconductor materials related to wafer manufacturing processes. Beneficial segments include thin film deposition, CMP, etching, and electroplating, with material usage gaining additional leverage through process improvements and technological iterations. The domestic storage giants are expected to become a key demand driver for semiconductor consumables, emphasizing the importance of core supply chain suppliers.